Yangzijiang Shipbuilding and Suntec 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 Yangzijiang Shipbuilding and Suntec REIT.

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

Weekly Market Review

2:07 - Macro Update

• The S&P 500 reached new highs last week, closing at 6,090 points with a 1% gain, driven primarily by tech stocks, as reflected by the Nasdaq's strong 3.3% increase.
• Singapore’s STI also performed well, hitting 3,786 points and briefly surpassing 3,800—a level not seen in years.
• Key economic data from the U.S. showed robust labor market strength, with 225,000 jobs created in November, exceeding expectations and rebounding from October’s climate-impacted figures.
• This reinforced confidence in the U.S. economy and bolstered expectations for a December rate cut, with an 86% probability of one occurring at the Federal Reserve’s December 18 meeting.
• Looking ahead, markets anticipate three more rate cuts in 2025, contributing to improved investor sentiment.
• Falling U.S. bond yields and expectations of lower interest rates, combined with a healthy U.S. economy, have created a strong foundation for markets.

5:19 - Singapore market updates

STI Top performers:

• Yangzijiang Shipbuilding Holdings Ltd
• Sembcorp Industries Ltd
• Jardine Matheson Holdings Ltd
• Seatrium
• Jardine Cycle & Carriage Ltd

STI worst performers:

• DFI Retail Group Holdings Ltd
• Singtel
• Mapletree Industrial Trust
• CapitaLand Ascendas REIT
• CapitaLand Integrated Commercial Trust

6:38 - Yangzijiang Shipbuilding

• Yangzijiang Shipbuilding has seen a volatile share price recently, correcting to $2.40 before rebounding to $2.70.
• The company is one of the best-performing STI stocks in 2024, supported by robust order momentum.
• As of November 2024, it had secured over $14 billion in new orders, far exceeding its $4.5 billion target for the year. This year’s orders surpass its combined total from 2021 and 2023, driven by strong demand for oil tankers and gas carriers.
• The company’s order book has risen above $22 billion, providing revenue visibility for the coming years.
• Key demand drivers include fleet renewal for oil tankers and growing shale gas production alongside cleaner energy transitions for gas carriers.
• While Yangzijiang Shipbuilding's 2024 dividend is expected to rise to $0.07 from $0.05, the dividend yield remains below 3%, lower than its historical average due to the sharp increase in its share price.

Related Links:

• Yangzijiang Shipbuilding share price history and share price target
• Yangzijiang Shipbuilding dividend history and dividend forecasts

10:22 - Suntec REIT

• Sunset REIT announced a cash offer at $1.16 per unit after shareholder Gordon Teng and related parties exceeded a 30% shareholding, triggering a mandatory offer under Singapore regulations.
• Following the announcement, Sunset REIT’s share price surged to $1.23 at Friday’s close.
• The offer price aligns with its one-month average price of $1.15 but represents a significant discount to its net asset value (NAV).
• Sunset REIT currently trades at 0.6x price to book, consistent with its historical average.

Read more: Suntec REIT cash offer of S$1.16. What should unitholders do?

Related Links:

• Suntec REIT share price history and share price target
• Suntec REIT dividend history and dividend forecasts

13:20 - Technical Analysis

STI Technical Analysis

• The STI gained 1.5%, supported by a strong 2.2% rise from Monday to Thursday before dipping 0.69% on Friday, likely due to cautious profit-taking ahead of U.S. non-farm payroll data.
• The STI remains optimistic, though some pullback is observed, with the RSI dropping from an overbought level of 74 to 64.
• The next milestone is the 3,900 level, last reached in October 2007, with 3,800 acting as a pivot and 3,700 as support.

Dow Jones Technical Analysis

• The Dow Jones Index ended last week with a slight pullback after reaching a new all-time high earlier in the week.
• Negative performance on Thursday and Friday brought it closer to the 70-point RSI overbought threshold, suggesting a potential short-term retracement.
• The MACD indicator shows convergence toward the signal line, with a positive histogram reading, but a negative reading could confirm a technical pullback.

S&P 500 Technical Analysis

• The S&P 500 reached a new all-time high of 6,099 points, just shy of the psychological 6,100 level, which is expected to be tested in the coming weeks or months.
• Unlike the Dow Jones Index, the S&P 500 shows no signs of a pullback yet and remains closely aligned with the upper Bollinger Band at 6,113 points, serving as the next resistance level.
• The MACD histogram indicates continued upward momentum, with no signs of convergence or retracement, suggesting that the rally is likely to persist in the near term.

Nasdaq Composite Technical Analysis

• The Nasdaq Composite Index reached a new all-time high at 19,863 points, closing near the peak at 19,859 on Friday.
• The MACD signals strong upward momentum with no signs of slowing, suggesting further gains in the short term.
• The RSI is at 72 points, slightly overbought but with potential to rise to 80, referencing past peaks this year.
• While the Nasdaq Composite Index has room for further upward movement, its elevated RSI and overall volatility suggest monitoring for signs of a pullback, especially near critical support levels.

What to look out for this week

• Tuesday, 10 Dec: Keppel DC REIT preferential offering closing date. Read our analysis here.
• Wednesday, 11 Dec: US CPI data

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

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