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 alongside Keppel DC REIT.

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

Weekly Market Review

2:03 - Macro Update

• S&P 500 rose 1.5% and STI gained 1% over the past week.
• Trump’s comments on positive US-China trade talks helped ease market tensions.
• US May nonfarm payroll data came in above expectations, showing a healthy labor market.
• US 10-year Treasury yield rebounded to 4.5% as rate cut expectations moderated.
• Property stocks led STI gains, with City Developments up 8.5% after news of its South Beach stake sale.
• Jardine group stocks and some REITs like CapitaLand Ascendas REIT were among the worst performers.

STI Top performers:

• City Developments
• Yangzijiang Shipbuilding
• UOL Group
• Hongkong Land
• Keppel Corporation

STI worst performers:

• Jardine Matheson Holdings
• Frasers Centrepoint Trust
• Jardine Cycle & Carriage
• CapitaLand Ascendas REIT
• DFI Retail Group

4:55 - Keppel DC REIT 

• Keppel DC REIT will be included in the STI, replacing Jardine Cycle & Carriage.
• It has been resilient, with its share price recovering above pre-trade tariff levels due to strong performance and acquisitions.
• Assets under management grew from $1 billion in 2014 to $5 billion in 2024, representing a 17% CAGR.
• Its portfolio is 80.7% Asia-Pacific focused, with 65% in Singapore and the remaining 20% in Europe.
• Distribution per unit rose 1.3% in 2024 to 9.504 cents, and surged 14.2% in Q1 2025 due to new data centre acquisitions.
• Two newly-acquired AI-ready data centres in Singapore are fully leased to global hyperscalers.
• Portfolio occupancy is 96.5% with 7% positive rental reversion in 1Q25, driven by high demand and nearly 100% data center utilisation in Singapore.
• Keppel DC REIT has low leverage at 30.2%, high interest coverage at 5.8x.

Related Links:

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

13:00  - Technical Analysis

Straits Times Index

• STI Index rose about 1% for the week, supported by positive trade talk developments.
• The index currently stands at 3,938, with a near-term resistance at 4,005 points.
• Market has been range-bound recently, with MACD indicating sideways movement and potential for a breakout.
• A key catalyst could be the outcome of US-China trade talks, especially with the 9th July tariff deadline approaching.
• Bollinger Bands are tightening, suggesting a high probability of a breakout in either direction soon.
• RSI is at 65, below the overbought level of 70, indicating there is still room for moderate upside.

Dow Jones Industrial Average 

• US indices performed well, with all three major indices breaking above their 200-day moving averages.
• Tensions rose early in the week with US-China accusations over unmet trade pause promises, including rare earth exports and AI chip restrictions.
• Trump stated that trade talks with Xi Jinping were progressing, but no concrete resolutions have emerged yet.
• Strong nonfarm payroll data on Friday helped push the Dow Jones above key resistance, signaling a potential confirmed rebound.
• Bollinger Bands and MACD show consolidation, suggesting a possible breakout ahead depending on trade talk outcomes.
• Dow Jones RSI is at 60, indicating a healthy uptrend with room for further gains toward the year-to-date high of 45,073 points.

S&P 500 

• The S&P 500 has rebounded strongly after testing its 200-day moving average in late May.
• The 200-day moving average and lower Bollinger Band around the 5,800 level serve as key technical support.
• The index closed above 6,000 last Friday and is now about 147 points away from its all-time high seen in February.
• Markets appear largely unfazed by Trump’s recent trade-related comments, reflecting improved sentiment since April.
• Historical patterns suggest Trump may eventually reach a trade compromise, easing investor concerns.
• The S&P 500 is likely to retest its all-time high in the second half of the year if current momentum holds.

Nasdaq Composite Index

• The NASDAQ saw a strong rebound from its April low and is now at 19,318, just 700 points from its all-time high of 20,200.
• Tesla’s 14% drop due to political tensions between Elon Musk and Trump created short-term volatility in the index.
• Positive trade talk developments this week could help push NASDAQ back toward its all-time highs.
• Key support levels lie at 18,500 and 18,400, where the 200-day, 100-day moving averages and lower Bollinger Band converge.
• The index has been trading range-bound over the past two weeks, suggesting consolidation before the next move.
• RSI is close to the overbought level, so caution is advised near 20,000, where profit-taking may occur.

What to look out for this week

• Wednesday, 11 Jun: US CPI data
• Friday, 13 Jun: University of Michigan consumer sentiment data

Get the full list of stocks with upcoming dividends here. 

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