- Stocks are likely to drift with closure in US markets giving few leads but trade continues to be the main theme as China pressed Europe for anti-US alliance on trade ahead of US tariffs on Chinese imports kicking in on Fri.
- Meanwhile, PBOC has given assurances that the yuan would not be used in the tit-for-tat moves, which includes latest Chinese ban on chip sales by US tech firm, Micron.
- Technically, downside for the STI lies at the crucial support level of 3,200, with upside capped at 3,280.
- MAS expect the economy to expand 2.5-3.5% this year but cautions that tail risks from protectionism and inflation have grown significantly.
- The spillover effect from global trade conflict would impact Singapore given its position in the regional electronics production value chain as well as hub for air and sea transport and financial services.
- Bilateral trade between US and China indirectly contributes 1.1% of Singapore's GDP, while US-EU flows add another 0.5%.
- MAS warns developers, banks and home buyers to be wary about euphoria in the property market given the supply stream coming in the next few years.
- This comes after aggressive bidding by developers in both collective sale tenders and government land site bids, which is expected to double the available housing units in the near term.
- Prices of private homes have also surged 9.1% since the trough in 2Q17, while transactions have jumped 25% over the past 12 months.
*Mapletree Logistics Trust
- Acquiring five logistics properties in Singapore from CWT for $778.3m, subject to approvals from JTC and CWT shareholders.
- With combined gfa of 3.2m sf (20% of portfolio), the modern purpose-built ramp-up warehouses are fully occupied and come with a sale-and-leaseback arrangement with built-in rental escalation of 1.5% and WALE of 8.7 years..
- The deal will be DPU accretive and expected to generate an initial NPI yield of 6.2%.
- The manager is reviewing various financing options from equity fund raising, potential divestments and/or debt.
- Trades at 6.4% yield and 1.1x P/B
- Awarded a $5.2m M&E maintenance contract by HDB.
- The 36-month contract will commence in Jul and will lift the group's current order book to $31.9m, with cmpletion till FY21.
- Trades at 17.9x trailing P/E
- Disclosed combined code sales of $74,112 from PoSA and 3S for 4QFY18, which is a 138.5% increase.
- The improved performance was mainly due to increase in product categories from new suppliers and higher sales volume.
- Detailed 4QFY18 and FY6/18 will be released on or before 29 Aug '18.
- Loss-making and trades at 2.25x P/B.
- Tikehau Investment Management Asia Pacific (TIM AP) will be acquiring 4.52% of the shares of IREIT's manager from Dolphin Two, while parent Tikehau Capital will acquire an additional 4.39% of IREIT units.
- TIM AP holds 80% of the shares in the manager and Tikehau Capital holds 3.61% of IREIT units. Post transaction, TIM AP will control 84.52% of the manager, while Tikehau Capital will own 8% of IREIT.
- The increase in stakes reflects a greater alignment of interest with the unit holders and Tikehau Capital's commitment to grow the European-based trust.
- Looking ahead, IREIT will continue to leverage on Tikehau Capital's established footprint, proven track record and extensive network in Europe to deliver long-term stable returns to unit holders.
- Trades at yield of 7.6x and 1.1x P/B
- Received letters of demand for the aggregate sum of S$23.2m from several banks but none have commenced legal proceedings against the group.
- It has appointed PWC as its independent financial advisor to establish the current financial position and work out a restructuring proposal with the banks.
- This may trigger cross default provisions in other banking facilities and project contracts.
- Trades at 0.47x P/B.