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Signs of new vigour in the property market
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3-11-2017 11:15 PM
alfonso Offline
Junior Sheep

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No chance!
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12-11-2017 9:21 PM
Insert Offline
Senior Sheep

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Everything looking good and rosy .... provided you acted early. Bye

Quote:Industrial, property stocks breathing life back into Singapore stock market

Published12 NOVEMBER, 2017

SINGAPORE — After months of lacklustre performance, the Singapore stock market is roaring back to life.

So far this year, equity funds have received some US$2 billion (S$2.72 billion) in 10 straight months of inflows, the most annually since 2007, according to data from asset allocation tracking company EPFR Global.

On Friday (Nov 10), the Straits Times Index (STI) posted a 29-month high of 3429.21 points, just days after it hit two-year record levels. Analysts expect the STI to breach the 3,500-level early next year barring external shocks.

The STI tracks the performance of the top 30 companies based on market capitalisation listed on the Singapore Exchange.


The index has risen by more than 17 per cent since the start of this year, thanks to the performances of Real Estate Investment Trusts (REITs), as well as banking counters which had been expected to do well this year in light of the higher interest rates environment and higher banks’ earnings.

Outperforming sectors, helped by the rosier global economic picture, have also contributed to the buoyant stock market. This list includes industrials, property and information technology. Apart from banking and finance, the top three best performing sectors on the STI consist of property and industrial stocks. The values of property and industrial counters have posted year-to-date growth of over 30 per cent and 16 per cent, respectively.

INDUSTRIAL STOCKS BUOYED BY GLOBAL ECONOMY

Industrial companies have been riding the tailwind of the global economic upswing this year, said CMC Markets analyst Margaret Yang. The rally in the oil prices has also been a factor.

IG market strategist Pan Jingyi noted that the cyclical stocks - such as industrials - on the STI have been beneficiaries of the improved economic environment. However, she added that while gains had been expected at the start of the year, the resilience of the global economy in the second half of the year has been a surprise.

Keppel Corp and Yangzijiang have seen a 30 per cent and a 100 per cent increase in share prices, respectively, in the year to date.

Keppel’s share price has risen from S$5.80 at the start of this year to S$7.53. The value of Yangzijiang’s stocks have doubled from S$0.82 a share to S$1.64 over the same period.

The oil price rally this year helped to lift valuations for Asian’s shipbuilders including Yangzijiang,” said Ms Yang. “The market anticipates more offshore orders will be placed in 2018 as oil prices continue to climb towards US$60 (S$81.60) per barrel.”

As for Keppel, its ability to beat market’s expectations on earnings for two out of the last three quarters despite ongoing challenges in the offshore and marine sector gave confidence to investors, said Ms Yang. The company’s diversified business portfolio - property, investment, infrastructure, offshore and marine – has also helped it to overcome difficulties in the oil and gas sector, she added.

Overall, for the sector, the analysts said that earnings have since improved compared to a year ago, and the market remains optimistic about economic growth and corporate earnings next year. However, the share price movements next year would depend on individual company’s performances, they added.

PROPERTY COUNTERS: ‘WORST IS OVER’

While property stocks were set to do well this year in line with the economic conditions, their performance was better than expected, said Ms Pan.

KGI Securities (Singapore)’s head of research Joel Ng pointed to the improved property market and better macro-economic prospects. The projection that the Singapore economy will grow at the higher end of the 2 to 3 per cent forcast range certainly boosted sentiments, he said.

Analysts also cited the easing of property cooling measures earlier this year as a factor. In March, the Government announced that the seller’s stamp duty would be lowered by four percentage points for each tier, and the holding period shortened, among other measures.

Shares of City Developments for example, were priced at S$12.20 each as of Friday, a 47-per-cent increase from S$8.31 on Jan 3.

“Market participants probably think that the worst for the property market is finally over. Besides Singapore, the property boom in China, Hong Kong and other South East Asian countries are also positive contributors to multi-national developers’ earnings,” said Ms Yang.

However, Mr Ng advised investors to be selective on property counters in the months ahead. “We believe most of the positive catalyst has been probably priced in,” he said.

THE OUTLIERS

Apart from entire sectors setting the pace on the stock market, some companies have seen their valuations soar in 2017 so far, outpacing their peers in the same industries. Examples include mm2, Venture Corp and Singtel.

The pickup in consumer discretionary stocks since the start of the year is a positive trend for the entertainment industry, making the likes of mm2 the ones to watch, said Ms Pan.

DBS analyst Ling Lee Keng said in a recent research note that she expects strong growth for mm2, supported by its core business and its UnUsUaL business unit. The company’s cinema business would also help build recurring income.

Ms Ling has set a target price of S$0.73 for mm2, which was valued at S$0.56 as of Friday. 
“Having a strong presence in the entire value chain of content creation and distribution further cements mm2’s status as the leader in the media/entertainment industry. With a much larger and stronger scale, especially with the expected completion of the Cathay cinema acquisition at end-November, mm2 can now enjoy the synergistic benefits from the entire value chain,” Ms Ling said.

Meanwhile, OCBC analyst Eugene Chua has called a “buy” on Venture Corp, increasing its fair valuation from S$20.33 to S$23. The company’s research and development would drive a sustainable rise in its margins, he said. Venture Corp’s share price on Friday closed at S$21.95.

“Venture Corp’s nine-month 2017 revenue grew 44.5 per cent year-on-year to S$2.92 billion driven by a diversified revenue base, continuing strong execution of customers’ programmes and deepening of collaborative partnership with strategic customers,” said Mr Chua.

Looking ahead, Mr Chua expects Venture Corp to post its its best results so far this year in the fourth quarter, based on its track record. This would provide further impetus for a higher share price, he added.

DBS analyst Sachin Mittal has given telco operator Singtel a “buy” call with a price target of S$4.30. The stock closed Friday’s trading at S$3.78. “Singtel is far ahead of its peers in digital transformation,” he said. The growth business segments (infocomms technology and digital), which currently make up around 25 per cent of Singtel’s revenue, may rise to an estimated 40 per cent of revenue in five years, Mr Mittal said.

http://www.todayonline.com/business/industrial-property-stocks-breathing-life-spore-stock-market
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12-11-2017 9:23 PM
talkingstocking Offline
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With all the cooling measures in place, difficult lah!

Fake news found :

http://sgtalk.org/mybb/User-SmarTIndex

SgTalk allows the use of FAKE news as signature! thumbs up

30-6-2017 6:44 AMtester wrote  He is using the signature to state his belief. Not neccesarily based on fact
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12-11-2017 9:26 PM
Sinostar Online
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Somebody is going to be caught off guard. Latest check on population stats, the population growth is slowing down.... and possibly stalling.... 6.9m is not going to happen... at the rate we are going unless a u-turn is made....

“Your time is limited, so don’t waste it living someone else’s life. Don’t be trapped by dogma – which is living with the results of other people’s thinking. Don’t let the noise of others’ opinions drown out your own inner voice."
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12-11-2017 9:31 PM
red3 Offline
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But 9.9million is going to happen.
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13-11-2017 2:49 AM
sgbuffett Offline
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things are rebounding so govt should not remove cooling measures......

I, being poor, have only my dreams;
I will do my utmost to keep them alive.
Against tyrants and adversity, I will strive.
Together, a better future, we will realise......
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14-11-2017 9:58 PM
Insert Offline
Senior Sheep

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Huh ? Still set for sizzle ? Already soaring away liao lah .... Big Grin

Quote:Singapore's property market is set to sizzle

Published14 NOVEMBER, 2017

SINGAPORE – A series of blockbuster land deals in Singapore this year signal the city-state's property market is set to break out of its prolonged slump in 2018.

A Chinese group lobbed a winning record bid for a residential plot, while Guocoland paid a record per-square foot price for an office development site in the central business district. Office rents last quarter rose for the first time in 2 ½ years and home prices ended a four-year slide.

The spending spree may not be over, with more than S$3.3 billion of land deals set to be completed by the end of the year, pushing the annual total to S$14 billion, the highest since 2011, according to Cushman & Wakefield.

“Singapore’s residential and office market has passed its inflection point, embarking on an exciting recovery journey,” said Christine Li, a director of research at Cushman. “With brighter economic prospects and improved market sentiment in the next two to three years, developers are increasingly sourcing land sites to ride the wave of growth for the rest of the decade.”


Singapore in March relaxed some home-buying restrictions, unleashing pent up demand in a market where property ownership as a proportion of household assets is near a record low.

Home prices could rise as much as 10 per cent next year, according to analysts from Morgan Stanley, BNP Paribas SA and UOB Kay Hian.

Brokers including Cushman and CBRE Group predict office rents will climb 7 per cent to 9 per cent as an oversupply of space eases.

The resurgence in deals suggests Singapore is on course to emulate Hong Kong’s red-hot property market, where home values have surged to record highs – following a jump in land prices last year –and office towers have fetched eye-popping prices.

With housing-affordability much better in Singapore, there may be a surge in demand next year, according to BNP Paribas.

Singapore’s property market has largely turned the corner, underpinned by a brightening economic outlook,” Tay Huey Ying, head of research & consultancy at JLL Singapore said.

Residential and Grade A office assets are poised to remain investor favorites for the rest of 2017 and 2018, she said.

Residential land sales were boosted by redevelopment deals, or so-called collective sales, where a group of owners band together to sell entire apartment blocks, allowing developers to knock them down and build anew in a city where new residential land sales are tightly controlled by the government.

These deals have topped S$6.3 billion this year, the highest since 2007. BLOOMBERG.

http://www.todayonline.com/singapore/singapores-property-market-set-sizzle
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15-11-2017 2:27 AM
jameslee58 Offline
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I think peoples are reading into enbloc sales as a sign of bill run, way ahead of themselves
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15-11-2017 4:26 AM
JanitorPML Online
Sheep

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SGP where got cooling measure ?

All non effective ... and that is why .... walking into the dark tunnel.
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15-11-2017 5:56 AM
sudoku Online
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It may be that people has found/discovered measures to go around the cooling measures.
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