Top Stories Strategy | Singapore Stock Picks In A Turbulent Market With war clouds, an oil shock, and market volatility, we focus on Singapore’s defensive sectors and quality blue-chip names. Deployment of funds from MAS’ Equity Market Development Programme could provide some respite in March and April. Key stock picks are CLAR, CLI, CIT, DBS, DFI, KEP, SE, ST, YZJSGD, ASL, CAREIT, CSE, DELFI, FEH, IFAST, UGAI and VALUE. Market Spotlight US stocks were higher on Monday, with all indexes risi...
Greater China Economics | China China set a 2026 GDP growth target of 4.5-5.0% yoy, in line with expectations, while maintaining a 4% fiscal deficit ratio. Fiscal policy remains the main growth driver, supported by Rmb4.4t in local government special bonds and Rmb1.3t in ultra-long treasury bonds, while monetary policy stays accommodative. Policy priorities focus on AI+, New Quality Productive Forces, industrial upgrading, and targeted consumption support, alongside welfare improvements and ...
Singapore equities extended gains in February, with the STI rising 1.8% to near the 5,000 level after reaching a record high above 5,040. Market sentiment was supported by steady manufacturing expansion and selective corporate strength, including Yangzijiang Shipbuilding’s strong earnings. Global markets remained cautious amid AI-related concerns, while geopolitical tensions in the Middle East raised risks of higher oil prices.
Greater China Economics | PMI February PMI was below Bloomberg's consensus, with manufacturing PMI edging down to 49.0 (-0.2pt mom) and non-manufacturing PMI staying contractionary at 49.5 (+0.1pt mom), partly reflecting Chinese New Year seasonality. New export orders sub-index fell to 45.0 (-2.8pt mom) for manufacturing PMI and 44.7 (-2.2pt mom) for services PMI. The manufacturing business expectations sub-index improved to 53.2 (+0.6pt mom) ahead of the Two Sessions. Company Results | AS...
CICT, KDCREIT and SUN surpassed expectations, but CLAR missed expectations. Results from 10 out of the 17 large-cap S-REITs under our coverage met expectations. Safe haven inflows kept domestic interest rates depressed. Three-month compounded SORA was stable at about 1.15% in January and February. Maintain OVERWEIGHT. BUY blue-chip S-REITs with attractive yields and positive catalysts: CICT (Target: S$2.95), FLT (Target: S$1.22), MPACT (Target: S$1.84) and NTTDCR (Target: US$1.42).
S-REITs would be active in asset recycling in 2026, supported by depressed domestic interest rates. M&A activities could be a positive surprise. Maintain OVERWEIGHT. BUY blue-chip S-REITs: FLT (Target: S$1.22), MPACT (Target: S$1.84) and NTTDCR (Target: S$1.42).
CLAR’s DPU dipped 2% yoy to 7.528 S cents in 2H25 due to the time lag for its acquisitions of 5 Science Park Drive and 9 Tai Seng Drive that were completed in Aug 25, two months after completing its equity fund-raising in Jun 25. Occupancy for the UK/Europe dipped 6.8ppt qoq to 92.0% due to logistics property Hawleys Lane at Northwest England being slated for redevelopment. Maintain BUY. Target price: S$3.70.
Greater China Strategy | Alpha Picks: February Conviction Calls Chinese equities recovered in January, with the HSI and MSCI China rising 6.9% and 5.0% mom, respectively. Given the supportive macro policy environment, we maintain a constructive view on the markets despite risk of further volatility in February. Accordingly, we are adding Alibaba, Ganfeng Lithium, and Minth to our BUY list, while adding Meituan to our SELL list. Indonesia Company Results | Bank Negara Indonesia (BBNI IJ/B...
Singapore equities delivered a strong January performance, with the STI rising 5.6% to fresh record highs amid heightened geopolitical tensions that drove flight-to-safety flows. Manufacturing activity remained in mild expansion, led by electronics and AI-related demand. Market/corporate catalysts during the month include REIT earnings, IPO interest in Catalist and continued strength in gold-linked counters.
Top Stories Sector Update | REITs S-REITs would be active in asset recycling in 2026, supported by depressed domestic interest rates. M&A activities could be a positive surprise. Maintain OVERWEIGHT. BUY blue-chip S-REITs: FLT (Target: S$1.22), LREIT (Target: S$0.81), MPACT (Target: S$1.84) and NTTDCR (Target: S$1.42). Company Results | CapitaLand Ascott Trust (CLAS SP/BUY/S$0.98/Target: S$1.42) Portfolio RevPAU increased 2% yoy to S$180 in 4Q25 as occupancy improved 2ppt yoy to 83%. Portfolio...
Greater China Sector Update | China Property CRIC data show that the top 100 developers’ contracted sales fell 24.7% yoy in Jan 26, while new-home sales in 28 major cities declined 36% yoy. Second-hand transactions in three Tier 1 cities rose 1% yoy. Maintain UNDERWEIGHT but deepening industry downturn leads to rising possibility of policy support, supporting selective exposure. CR Land remains our top pick, with P/B at 1SD below the five-year mean, and PE and yield near the five-year average....
Portfolio RevPAU increased 2% yoy to S$180 in 4Q25 as occupancy improved 2ppt yoy to 83%. Portfolio valuation increased 1.7% or S$130m with revaluation gains from Japan, France and Australia. Management would consider drastic measures, such as replacing the property managers, to arrest the decline in student accommodation assets. Some 90% of tenants are local students from reputable universities. Maintain BUY. Target price: S$1.42.
S-REITs would be active in asset recycling in 2026, supported by depressed domestic interest rates. M&A activities could be a positive surprise. Maintain OVERWEIGHT. BUY blue-chip S-REITs: FLT (Target: S$1.22), LREIT (Target: S$0.81), MPACT (Target: S$1.84) and NTTDCR (Target: S$1.42).
Greater China Economics | PMI December Manufacturing PMI rose to 50.1, back in the expansionary zone for the first time since March. Non-manufacturing PMI also improved at 50.2 (+0.7pt mom), driven by a rebound in construction activity, while services PMI remained slightly contractionary pointing to weak domestic demand. Enterprise PMI showed divergent trends, with large firms leading the improvement. Overall, the December data points to uneven recovery despite the positive headline numbers....
Top Stories Sector Update | REITs Safe haven liquidity continues flowing into Singapore, pushing down SORA on an overnight basis to a low of 1.27%. Three-month compounded SORA eased 8bp to 1.25% in Nov 25. The Fed cut the Fed Funds Rate by another 25bp to 3.75% during the FOMC meeting on 29 Oct 25. Maintain OVERWEIGHT. BUY blue-chip S-REITs with specific catalysts: CLAR (Target: S$4.02), CLAS (Target: S$1.56), KDCREIT (Target: S$2.65), KREIT (Target: S$1.20) and LREIT (Target: S$0.81). Market S...
Greater China Economics | PMI November PMI undershot expectations; manufacturing PMI was at 49.2 (+0.2pt mom) and non-manufacturing PMI slipped to 49.5 (-0.6pt mom), the first contraction in nearly three years. With the services industry index weakened to 49.5 (-0.7pt mom). PMI data confirms growth momentum is easing, so expect more supportive policies to be rolled out soon, but for economic confidence to return, we need a sustainable bottom in the real estate sector. Sector Update | Heal...
Safe haven liquidity continues flowing into Singapore, pushing down SORA on an overnight basis to a low of 1.27%. Threemonth compounded SORA eased 8bp to 1.25% in Nov 25. The Fed cut the Fed Funds Rate by another 25bp to 3.75% during the FOMC meeting on 29 Oct 25. Maintain OVERWEIGHT. BUY blue-chip S-REITs with specific catalysts: CLAR (Target: S$4.02), CLAS (Target: S$1.56), KDCREIT (Target: S$2.65), KREIT (Target: S$1.20) and LREIT (Target: S$0.81).
Top Stories Sector Update | REITs Two out of the 16 large-cap S-REITs under our coverage surpassed expectations. FLT’s occupancy for logistics properties in Australia gained 4.3ppt qoq to 100% in 4QFY25. SUN has received a favourable ruling from the ATO, which has a positive impact of 3.7% on 2025 DPU. Maintain OVERWEIGHT. BUY blue-chip S-REITs with specific catalysts: CLAR (Target: S$4.02), CLAS (Target: S$1.56), KDCREIT (Target: S$2.65), KREIT (Target: S$1.20) and LREIT (Target: S$0.79). Mark...
Two out of the 16 large-cap S-REITs under our coverage surpassed expectations. FLT’s occupancy for logistics properties in Australia gained 4.3ppt qoq to 100% in 4QFY25. SUN has received a favourable ruling from the ATO, which has a positive impact of 3.7% on 2025 DPU. Maintain OVERWEIGHT. BUY blue-chip S-REITs with specific catalysts: CLAR (Target: S$4.02), CLAS (Target: S$1.56), KDCREIT (Target: S$2.65), KREIT (Target: S$1.20) and LREIT (Target: S$0.79).
Greater China Strategy | Alpha Picks: November Conviction Calls HSI and MSCI China fell 3.5%/4.0% mom in October, dragged by renewed US-China trade tensions and lack of fresh policy signals from the 4th Plenum. We remain constructive in the medium term but expect further consolidation as uncertainties persist. The best performer among our picks was SELL-rated Li Auto (+21.4% mom). For November, we rotate into oversold names with near-term upside: add AIA, LINK REIT, NAURA, Pinduoduo, PICC P&...
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