Singapore stocks shine, T-bill yield climbs and REITs decline: Weekly Market Recap

There’s been a lot happening in the financial markets lately that caught my attention. 

Singapore stocks are on a roll, with the benchmark Straits Times Index (STI) hitting a 17-year high recently. 

Several blue-chip stocks, including Singapore banks, have performed exceptionally well this year. We take a closer look at three Singapore blue-chip stocks that recently reached 52-week highs.

Next, Singapore T-bill yields appear to be reversing course. The latest 6-month T-bill yield climbed to 3.08%, rebounding from a low of 2.97% in September. 

With the current Singapore Savings Bond (SSB) offering a 10-year average yield of 2.81%, we examine whether it’s better to apply for the current SSB or wait for the next one.

Meanwhile, the recovery in T-bill yields has put pressure on Singapore REITs, which have declined in recent weeks. 

If you are interested in Singapore REITs, do join us for our upcoming webinar on 26 November where I will share my thoughts on what lies ahead for Singapore REITs in 2025.

In the meantime, we delve into European REITs to find out how they are positioned for further interest rate cuts by European central banks.

Lastly, I would really appreciate it if you can take a moment to fill out the SIAS x Beansprout Singapore Retail Investor Pulse Survey 2024. Your input will help us understand how we can help you better when investing in Singapore stocks.

Happy growing! 

Gerald, Founder of Beansprout

⏰ This Week In Markets

💪 Healthy economic growth 

What happened? 

Singapore's economy grew by 5.4 per cent year-on -year in the third quarter of 2024, above the advanced estimate of 4.1%. 

Following the strength in recent quarter, the Ministry of Trade and Industry (MTI) raised its projection for Singapore economy to grow by around 3.5% in 2024 from the previous forecast of 2% to 3%. 

The MTI also forecasts Singapore's economic growth to be between 1% and 3% in 2025. 
 

What does this mean?

The strong GDP growth in the third quarter was supported by the robust global economy.

At the same time, an ongoing recovery in global electronics demand could further lead to growth in Singapore's manufacturing sector. 

However, the tourism-related sectors are facing headwinds from slower-than-expected recovery in tourist arrivals. 

Why should I care? 

Singapore's benchmark Straits Times Index (STI) soared to a 17-year high, following strong economic growth and earnings reported by by corporates.

Likewise, US stocks recovered as investors focused on Nvidia's earnings. The company reported earnings that largely met expectations, though its guidance for the upcoming quarter was slightly below some analyst forecasts. 

🚗  Moving This Week

• Keppel DC REIT's private placement at $2.09 per unit was 3.4 times subscribed, and raised gross proceeds of about S$700 million. The amount raised will be used to partially fund the purchase of two hyperscale data centres from the REIT’s sponsor Keppel. Read our analysis on Keppel DC REIT's acquisition and preferential offering here.  
• Keppel Infrastructure Trust has proposed to acquire Keppel Marina East Desalination Plant, which began commercial operations in June 2020 and is Singapore’s fourth desalination plant. Upon the completion of the proposed acquisition, KIT’s assets under management (AUM) will grow to $9 billion from $8.7 billion as at Sept 30. Read our analysis on Keppel Infrastructure Trust here.
• ST Engineering reported revenue of S$8.3 billion for 9M24 ended 30 September, an increase of 14% compared to the previous year. The jump was led by "significant" 3QFY2024 growth in its defence and public sector segment. The company secured S$2.2 billion of new contracts in 3Q24, bringing its total order book to S$26.9 billion.
• CapitaLand Investment (CLI) has agreed to buy an initial 40% stake in real estate investment manager SC Capital Partners for S$280 million. The transaction is expected to increase CLI’s funds under management (FUM) by S$11 billion to a combined FUM of S$113 billion.
• Thai Beverage reported a net profit of 27.2 billion baht (S$1.1 billion) for its full year ended 30 Sep, a 1% decline from 27.4 billion baht a year ago, due to a decrease in earnings from the spirits and food businesses.

Source: Bloomberg, CNBC, Business Times, Edge Singapore

💡 The big important story

T-bill yield rebounds to 3.08%. What's driving the increase?

The cut-off yield on the latest Singapore T-bill auction on 21 November rose to 3.08%

🤓 What we're looking out for next week

• Monday, 25 Nov: Singapore Airlines ex-dividend date
• Tuesday, 26 Nov: Beansprout webinar: Singapore REITs Outlook - What to expect in 2025? Singapore Savings Bond closing date
• Wednesday, 27 Nov: US GDP data
• Thursday, 28 Nov: US Holiday

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

Source: SGX, Bloomberg, Refinitiv

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