Keppel DC REIT, Mapletree Logistics Trust & Parkway Life REIT have generated gains in the 2020 YTD, leading the overall S-REIT Sector which has averaged a 22% decline over the period. Keppel DC REIT, Mapletree Logistics Trust & Parkway Life REIT are also amongst the 22 S-REITs that report more than a third of their revenue to Singapore.
In the first 17 weeks of 2020, ComfortDelGro subsidiary VICOM was the strongest performer among Singapore Industrials stocks that report majority of their revenues to ASEAN. It registered a share price decline of 1.2% in the YTD, taking its 10Y average annualised total return to 17%.
Oil prices expected to remain volatile on oversupply and concerns of COVID-19 impact on the global economy. Banks in Singapore and overseas have significant exposure to the oil & gas sector. ESG, MPA and MAS issued joint release saying that banking sector remains sound and is closely monitoring liquidity and credit conditions. Singapore banks’ NPL ratios have stabilised at 1.5% at end 2019 results, vs. average of 1.7% in end 2017
MOF, IRAS & MAS have announced new measures for S-REITs – distribution timeline extensions to qualify for tax transparency, leverage limit raised from 45% to 50% and defer implementation of a new minimum interest coverage ratio (ICR) requirement to 2022.
Singapore’s 20 most traded stocks with style factors of high Return-on-Equity (ROE) and low Debt-to-Assets have declined in-line with benchmarks in early 2020, however outperformed over the past 5 years by 5% per year.
Majority of the STI Constituents are sticking to quarterly reporting. DBS and OCBC Bank are opting for abridged financial disclosures instead of the detailed quarterly earnings reports. Mapletree Commercial Trust, Mapletree Logistics Trust, SGX, Keppel Corp, DBS Bank and UOB – have announced that they will unveil results for the quarter ended 31 March 2020 over the next few weeks.
Soilbuild Business Space REIT, ParkwayLife REIT, Frasers Centrepoint Trust, Mapletree Industrial Trust, Mapletree North Asia Commercial Trust, and Lendlease Global Commercial REIT – have confirmed they will unveil results for the quarter ended 31 March 2020 over the next 3 weeks.
STI stocks that saw the biggest pick up in intra-day volatility in 1Q20 included CapitaLand Mall Trust, CapitaLand Commercial Trust, Genting Singapore, SATS & Ascendas REIT. The STI stocks that maintained the highest intra-day volatility in 1Q20 included Yangzijiang Shipbuilding, Mapletree Logistics Trust, Thai Beverage, SPH & Sembcorp Industries.
In the 2020 year to 3 April, Singapore Airlines, SIA Engineering, SATS and ST Engineering averaged declines of 38% bringing their average 10-year total returns to a marginal gain of 7%. This was in-line with the median performances of the 280 global aviation, aerospace and airport services stocks.
In March, 65 SGX primary-listed stocks bought back shares for a total consideration of S$502 million. This was the highest monthly consideration since S$544 million in consideration was reported for the month of August 2015. DBS, OCBC and UOB led the consideration tally, accounting for 88% of the total consideration.
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