CapitaLand Ascott Trust and Mapletree Industrial Trust 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 CapitaLand Ascott Trust and Mapletree Industrial Trust.

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

Weekly Market Review

1:30 - Macro Update

• The S&P 500 closed was up by 0.2%, while the Dow Jones and Nasdaq both increased by 0.1%.

• The STI closed just below the 3,600 points with a 0.4% gain. 

• US added 254,000 jobs in September, which was above the market expectations for 140,000 jobs. This is also the highest level since March 2024.
• US labour market remains healthy, easing concerns about a US recession. With the latest job data, investors are expecting each of the rate cuts in November and December to be 0.25%.
• Oil prices have spiked by close to 10% over the past week mainly due to concerns around how the geopolitical crisis in the Middle East will actually affect oil supplies.

4:55 - Singapore market updates

STI Top performers:

• Seatrium
• SATS Ltd
• Hongkong Land Holdings Ltd
• Jardine Matheson Holdings Limited
• SGX

STI worst performers:

• Thai Beverage
• Frasers Centrepoint Trust
• OCBC 
• CapitaLand Integrated Commercial Trust
• UOB

6:30 - CapitaLand Ascott Trust

• CapitaLand Ascott Trust saw a rebound in the share price from $0.94 to $0.98 as of Friday. 
• Recently acquired Lyf Funan, an asset located at Funan Singapore at an agreed property value is about S$263 million 
• Partially funded by proceeds from the divestment of Citadines Mall, Sofia, Singapore.
• Transaction is expected to be accretive to its distribution per unit (DPU) by 1.5%
• With Lyf Funan, the share of contribution from Singapore will increase from 16% to 19%

• CapitaLand Ascott Trust is currently trading at a price to book valuation of about 0.85 times, which is in line with the historical average

• CapitaLand Ascott Trust  offers a dividend yield of about 6.1%, which is above the historical average

Related Links:

• CapitaLand Ascott Trust share price history and share price target
• CapitaLand Ascott Trust dividend history and dividend forecasts

10:38 - Mapletree Industrial Trust

• Acquiring a multi-story mixed use facility in Tokyo, and this multi-story mixed use facility would include a data centre, back office, training facilities, and adjacent accommodation wing. 
• Purchase consideration of about $130 million, and this acquisition is expected to be completed in the fourth quarter of this year. 

• The asset has an occupancy rate of 100%, located within a key data centre cluster in Tokyo, and the lease is with an established Japanese conglomerate. 

• Mapletree Industrial Trust exposure to Japan will increase from 5.1% to 6.4% and looking specifically at Asia-Pacific data centres, exposure will increase from 8.3% to 9.6%. 

• Mapletree Industrial Trust is currently trading at about 1.4 times price to book valuation, which is above the historical average

• Mapletree Industrial Trust offers a dividend yield is about 5.2%, which is below the historical average. 

Related Links:

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

13:41 - Technical Analysis

STI Technical Analysis

• STI very near to the year-to-date high at 3,652 points. 
•  The MACD indicator had negative reading, showing a residing downtrend momentum.

• The RSI indicator, is about six points away from the 70 point overbought mark. It's also close to the 67 point, which is the 14 days RSI moving average, suggesting an overbought condition.

• The next support level and resistance level will be 3,500 and 3,650 points respectively.

Hang Seng Index

• The Hang Seng Index is now at the 22,920 points level, above the 2023 high of 22,700 points.
• If the index does not successfully breach the 22,700 points level, the pullback would likely firstly go back to the April high in 2023, at around the 20,800 points level.

Dow Jones Technical Analysis

• The Dow Jones index has a new all-time close at 42,352 points, with the all-time high on the 27th of September at 42,628 points. 
• The MACD is showing a more neutral kind of reading.
• The RSI index at 63.8 is also about 6 points away from the 70 point overbought level. 

S&P 500 Technical Analysis

• The S&P500 is 16 points away from the all-time high at the 5767 points level.
• The MACD is showing a more neutral kind of reading.

• The RSI is at 62, getting closer to the 70 point overbought level, but still quite safe because it has  crossed above the RSI 14 days moving average. 

Nasdaq Composite Technical Analysis

• No new all-time high last week, currently 3% below the 10 July all-time high. Further upside potential remains, with the possibility of retesting the all-time high.
• The MACD is showing a neutral reading.
• RSI at 59 and there is still a bit of room to move up to the 70 point overbought level compared to the other two major U.S. indices.

What to look out for this week

• Thursday, 10 Oct: 6-month Singapore T-bill auction, US Consumer Price Index (CPI) data
• Friday, 11 Oct: JPMorgan earnings

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