Mapletree Industrial Trust and Keppel DC REIT in focus: Weekly Review with SIAS

What happened?

In this week's Weekly Market Review in partnership with Securities Investors Association Singapore (SIAS), we discuss key developments in the global equity market and also share more about Mapletree Industrial Trust and Keppel DC REIT.

Watch the video to learn more about what we are looking out  for this week.

Weekly Market Review

2:00 - Macro Update

• The US markets experienced volatility, with the S&P 500 declining by 1%.
• Losses were led by AI-related tech stocks, particularly chip manufacturers..
• Notably, NVIDIA faced a historic loss of $589 billion in market value on 27 Jan, the biggest one-day market cap loss in history.
• The decline was driven by the emergence of DeepSeek, a Chinese AI startup that developed its R1 model at just $6 million.
• This was a fraction of the cost needed for training OpenAI's ChatGPT.
• This prompted investors to reassess the AI sector's capital requirements, contributing to the sell-off in high-cost chip stocks.

4:43 Singapore market updates

STI Top performers:

• Singtel
• DFI Retail Group
• DBS
• Hongkong Land
• Yangzijiang

STI worst performers:

• Seatrium
• SATS
• Mapletree Logistics Trust
• Venture
• Mapletree Industrial Trust

5:38 - Mapletree Industrial Trust

• Mapletree Industrial Trust recently went ex-dividend and saw its share price drop to $2.10, a 52-week low, partly due to concerns over DeepSeek's impact on data center demand.
• Data centers represent 56% of its portfolio, with significant assets in North America at 46.1%.
• Despite a decline in overall portfolio occupancy from 92.9% to 92.1%, gross revenue grew by 2%, driven by strong Singapore assets, leading to a 2.6% increase in net property income and a 1.5% rise in distribution per unit to 3.41 cents
• Leverage ratio of 39.8%, and its current dividend yield stands at 6.2%, reflecting resilient distributions despite market challenges.
• Currently trading at 1.25 times price-to-book, above the sector and historical averages. 

Related Links:

• Mapletree Industrial Trust share price history and share price target
• Mapletree Industrial Trust dividend history and dividend forecasts

9:12 - Keppel DC REIT

• Keppel DC REIT experienced a sharp share price drop on Monday amid the AI-related sell-off but recovered to $2.20 by Friday.
• The REIT reported strong financial performance, with gross revenue rising 8.8% and distributable income increasing by 20.2%.
• This led to a 13.2% rise in distribution per unit to 4.902 cents.
• Portfolio occupancy remains healthy at 97.2%.
• Following a major equity fundraising, the acquisition of two Singapore data centers was completed in December 2024, expected to boost future distributions.
• The REIT maintains a low leverage ratio of 31.5%, with its average cost of debt declining to 3.1%.
• Dividend yield of 4.1% is below historical and sector averages.

Related Links:

• Keppel DC REIT share price history and share price target
• Keppel DC REIT dividend history and dividend forecasts

18:10 - Technical Analysis

STI Technical Analysis

• The STI index opened down by 0.7% this morning, pulling back from its January high of 3,886 level following trade war concerns announced by Trump on Friday.
• Despite the decline, the index remains above the key 3,800 support level, aligned with the 20-day moving average.
• While the STI has been in a strong uptrend since the second half of 2024, it recently broke below its price channel, suggesting sideways trading in February.
• Indicators such as MACD and RSI point to diminishing momentum, with the RSI declining from 61 to 55, indicating a neutral reading.
• Key support lies at 3,750–3,760 points, with the top side at at 3,887, a potential 17-year high.

Dow Jones Technical Analysis

• The Dow Jones index outperformed in January, benefiting from strong earnings by major financial firms during the earnings season.
• It approached its December high of 45,054 points but fell short by 20 points after a market pullback following Trump’s tariff announcement.
• Despite recent momentum loss, indicated by the MACD line converging toward the signal line, the index remains elevated.
• Key support levels are at the 20-day moving average of 43,524 points, the 100-day moving average at 42,879 points, and the 200-day moving average at 41,500 points
• Investors who entered in early January are advised to consider taking profits and wait for a potential mean reversion before reaccumulating positions.

S&P 500 Technical Analysis

• The S&P 500 performed well in January, driven by strong earnings from big banks and steady growth in tech giants like Apple and Microsoft.
• The index came within 10 points of its all-time high of 6,128 before pulling back to around 6,040 points.
• This was likely due to trade war concerns sparked by Trump’s tariff announcement and potential retaliation from Mexico, Canada, and China.
• Key support levels are the 20- and 50-day moving averages near 5,979 points and the 100-day moving average at 5,860 points,
• Investors are advised to adopt a cautious approach and consider accumulating positions near the 100-day moving average.

Nasdaq Composite Technical Analysis

• The Nasdaq Composite Index, the most volatile of the US indices, has been significantly impacted, with a 2.22% drop this morning based on Nasdaq futures.
• Year-to-date, the index has fallen into negative territory, down 2% today after gaining just 1.15% in January.
• It has pulled back close to the 20-day moving average at 19,565 points, with additional support at the 50-day moving average at 19,427 points and the critical 100-day moving average at 18,960 points.
• The 19,000 level serves as a strong psychological support.
• Indicators such as MACD and RSI suggest sideways movement in the short term, aligning with market uncertainty fueled by Trump's unpredictable tariff policies.
• Investors are advised to adopt a wait-and-see approach, with potential opportunities to accumulate positions if the index approaches the 19,000 level.
• February is anticipated to be a volatile period.

What to look out for this week

• Monday, 3 Feb: Lendlease Global Commercial REIT earnings
• Tuesday, 4 Feb: Keppel Infrastructure Trust, Frasers Logistics & Commercial Trust earnings
• Wednesday, 5 Feb :  CapitaLand Integrated Commercial Trust, Keppel earnings
• Thursday, 6 Feb : CapitaLand Ascendas REIT, SGX earnings
• Friday, 7 Feb : Frasers Property earnings

Check out the full list of Singapore stocks, REITs and ETFs with upcoming dividend payments with our dividend calendar.

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