Lim & Tan Securities
DAILY REVIEW | 23 APRIL 2025
Singapore Market Navigates Global Uncertainty: An In-Depth Analysis of Key Trends and Stocks
Financial Market Overview
- FSSTI Index: Closed at 3,795.4, up 1.0% with MTD at -4.5% and YTD at 0.2% [[1]]
- INDU Index: 39,187.0, up 2.7% with MTD at -6.7% and YTD at -7.9% [[1]]
- SPX Index: 5,287.8, up 2.5% with MTD at -5.8% and YTD at -10.1% [[1]]
- CCMP Index: 16,300.4, up 2.7% with MTD at -5.8% and YTD at -15.6% [[1]]
- UKX Index: 8,328.6, up 0.6% with MTD at -3.0% and YTD at 1.9% [[1]]
- NKY Index: 34,220.6, down -0.2% with MTD at -3.9% and YTD at -14.2% [[1]]
- HSI Index: 21,562.3, up 0.8% with MTD at -6.7% and YTD at 7.5% [[1]]
- SHCOMP Index: 3,299.8, up 0.3% with MTD at -1.1% and YTD at -1.6% [[1]]
- VIX Index: 30.6, down -9.6% with MTD at 37.2% and YTD at 76.2% [[1]]
- Daily Market Value: S\$1,473.3 million [[1]]
- Daily Market Volume: 1,432.5 million [[1]]
- 52-week STI High: 4,005.2 [[1]]
- 52-week STI Low: 3,198.4 [[1]]
Key Interest Rates
- 3 Mth SGD SORA: 2.5, down -0.2% with MTD at -4.2% and YTD at -20.1% [[1]]
- SG 10 YR Bond Yield: 2.6, up 0.8% with MTD at -4.1% and YTD at -10.0% [[1]]
- US 10 YR Bond Yield: 4.4, down -0.7% with MTD at 4.0% and YTD at -4.3% [[1]]
US Futures Market Performance
- Dow Jones: 39,970.0, up 1.6% with MTD at -5.4% and YTD at -10.3% [[1]]
- S&P 500: 5,414.5, up 1.9% with MTD at -4.2% and YTD at -9.6% [[1]]
- NASDAQ: 18,763.0, up 2.1% with MTD at -3.5% and YTD at -12.6% [[1]]
Commodities Market Update
- Gold: 3,338.9, down -1.2% with MTD at 6.9% and YTD at 27.2% [[1]]
- Crude Oil: 64.3, up 1.9% with MTD at -10.0% and YTD at -10.3% [[1]]
- Baltic Dry: 1,261.0, up 1.6% with MTD at -21.1% and YTD at 26.5% [[1]]
- Crude Palm Oil: 3,945.0, down -0.5% with MTD at -8.5% and YTD at -3.8% [[1]]
Market Commentary
USA stocks surged 2%-3%, recouping previous day losses after President Trump indicated he would not fire US Fed Chairman Jay Powell and expressed interest in a deal with China to reduce tariffs [[1]].
Idea of the Day: Keppel REIT
Keppel REIT (\$0.83, up ½ cent) reported property income and net property income growth of 12.1% and 13.3% year-on-year, reaching \$68.7 million and \$54.6 million respectively in 1Q 2025. Additionally, the share of results from associates increased by 11.0% year-on-year to \$24.3 million. These gains are attributed to improved performance of Singapore properties in the CBD, increased occupancy at 2 Blue Street, and contributions from 255 George Street [[1], [2]].
Management Commentary
Mr. Chua Hsien Yang, Chief Executive Officer of the Manager, noted the strength of Keppel REIT’s prime commercial assets, citing a high portfolio occupancy of 96.0% and a strong rental reversion of 10.6%. Attributable NPI for Singapore, Australia, and North Asia increased by 3.3%, 20.8%, and 12.6% respectively. The company is focused on enhancing tenant experience and future-proofing properties. Asset enhancement initiatives at Building D of Pinnacle Office Park and fitted suites at 255 George Street have been completed. Ocean Financial Centre achieved the BCA Green Mark Platinum Super Low Energy certification [[2], [3]].
Capital Management
As of 31 March 2025, Keppel REIT’s aggregate leverage was 42.1%, with 65% of total borrowings on fixed rates. The weighted average cost of debt was 3.52% per annum for 1Q 2025, and the interest coverage ratio was 2.5 times. The debt maturity profile is well-staggered, with a weighted average term to maturity at 2.6 years. Sustainability-focused funding remained at 82% of total borrowings. In 1Q 2025, approximately \$421 million of loans were refinanced at lower margins, and the facility agreements for \$475 million of loans maturing in 2Q 2025 are in the documentation stage [[3]].
Portfolio Review
Keppel REIT committed approximately 586,400 sf (attributable area of approximately 259,900 sf) of leases in 1Q 2025, with new and expansion demand mainly from the technology, media and telecommunications (47.7%) and banking, insurance and financial services (33.3%1) sectors. The weighted average signing rent of Keppel REIT’s Singapore CBD office leases was approximately \$12.93 psf pm in 1Q 2025, while the average rent of expiring leases for the remainder of 2025 is \$11.21 psf pm. The portfolio and top 10 tenants’ WALE remained long at approximately 4.7 years1 and 8.7 years respectively. Keppel REIT’s \$9.5 billion portfolio features prime commercial properties strategically located in the key business districts of Singapore (78.6% of portfolio), Australia (17.6% of portfolio), South Korea (2.9% of portfolio) and Japan (0.9% of portfolio) [[3], [4]].
Market Review
In Singapore, CBRE reported that the average core CBD Grade A office rents increased to \$12.05 psf pm in 1Q 2025, while average core CBD (Grade A) occupancy remained stable at 94.1% in 1Q 2025. According to JLL Research (JLL), in 1Q 2025, the prime grade occupancies in the Sydney CBD, North Sydney, Melbourne CBD and Perth CBD increased, while Macquarie Park recorded a decline compared to a quarter ago. JLL also noted that the CBD Grade A office occupancy in Seoul increased from 96.6% in 4Q 2024 to 97.0% in 1Q 2025. In the Tokyo central five wards, JLL noted that the Grade A office market occupancy increased from 97.2% in 4Q 2024 to 97.5% in 1Q 2025, while the Grade B office market occupancy increased from 97.4% in 4Q 2024 to 97.7% in 1Q 2025 [[4], [5]].
Investment Recommendation for Keppel REIT
At 83 cents, Keppel REIT is capitalized at \$3.2 billion and trades at 20x forward PE, 6.8% dividend yield, 0.7x price to book while consensus 1 year target price of \$1 implies a potential upside of 20% from current level. Lim & Tan Securities has an “Accumulate” rating on Keppel REIT given its blue chip customer base, solid asset locations within the prime areas in Singapore’s central business district and its attractive valuations and yield would compensate investors for waiting for the eventual interest rate cuts ahead [[5]].
FSSTI Stock Selection
Highest Consensus Forward Dividend Yield (%)
- DBS BANK 7.29 [[2]]
- FRASERS LOGISTICS TRUST 7.00 [[2]]
- MAPLETREE LOGISTICS TRUST 6.92 [[2]]
- MAPLETREE INDUSTRIAL TRUST 6.80 [[2]]
- VENTURE CORP 6.68 [[2]]
Lowest Consensus Forward P/E (X)
- YANGZIJIANG SHIPBUILDING 6.61 [[2]]
- JARDINE CYCLE & CARRIAGE 7.24 [[2]]
- JARDINE MATHESON 7.70 [[2]]
- SINGAPORE AIRLINES 8.51 [[2]]
- UOB BANK 9.46 [[2]]
Lowest Trailing P/B (X)
- HONGKONG LAND 0.31 [[2]]
- UOL GROUP 0.42 [[2]]
- JARDINE MATHESON 0.44 [[2]]
- CITY DEVELOPMENTS 0.49 [[2]]
- MAPLETREE PAN ASIA COMM TRUST 0.70 [[2]]
Lowest Trailing EV/EBITDA (X)
- YANGZIJIANG SHIPBUILDING 3.31 [[2]]
- GENTING SINGAPORE 5.46 [[2]]
- JARDINE CYCLE & CARRIAGE 5.92 [[2]]
- DFI RETAIL GROUP 6.36 [[2]]
- SATS 8.10 [[2]]
UOB Kay Hian (UOB KH) Analysis
Key points from UOB Kay Hian’s (\$1.77, up 1 cent) response to questions from shareholders in regards to their upcoming AGM [[2]]:
- Share Buy Back: The Management has reviewed and has no immediate plans to cancel the shares that were bought back [[2], [3]].
- Bank Overdraft: Bank overdrafts reflect very short term funding requirements of the group for settlement purpose [[3]].
- Equities Market Review by MAS: UOB KH believes the measures by MAS would improve market activity, indirectly benefiting the brokerage firm [[3]].
- Market Volatilities: Higher trading activities from market volatilities can lead to higher trading volumes which benefit the company [[3]].
- Share Purchases of UOB Kay Hian Securities (Thailand): Trading below book value, regular share purchase is a signal to the market of UOB KH’s confidence in the subsidiary [[3]].
- Share Buy-Back History: The last share buy back was on 5 October 2023 and the Company has not made any share buy back since [[3]].
- Segment Reporting: Commission revenue is presented based on where the clients open their brokerage account regardless of which market they are trading [[3], [4]].
Investment Recommendation for UOB Kay Hian
UOB KH’s market cap stands at S\$1.7bln and currently trades at 7.2x PE and 0.8x PB, with a dividend yield of 6.7%. Given increased trading activities/volatilites as a result of Trump’s policies which resulted in heavier trading, coupled with the upcoming MAS \$5bln scheme to boost the Singapore stock market amidst a relatively volatile interest rate environment, we believe UOB KH can post better results and subsequently distribute higher dividends as a result of their 50% dividend payout policy. Compared to SGX and iFAST which trades at 23.8x and 18.8x Forward PE and less than 3% dividend yields compared to UOB Kay Hian’s superior yield of 6.7%, we think UOB KH’s valuations are undemanding. As a result, we recommend a “BUY” rating on UOB KH [[4]].
Macro Market News Affecting US, Hong Kong and China Markets
US Market
BCA Research suggests staying defensive and adding exposure to EM local currency bonds, which will benefit from US dollar depreciation over the medium and long term. Structural pressures on the US dollar are mounting, and the recent reversal in net portfolio capital inflows into the US is already weighing on the greenback. The greenback will weaken, even during a global downturn in the second half of 2025 [[3]].
China/HK Market
Major Chinese companies like Midea are implementing mandatory clock-off times for staff and bans on after-hours meetings. The government is calling for companies to abide by the country’s 44-hour weekly work limit, aligning with policymakers’ desire to see the economy driven more by consumption and less reliant on exports. A State Council action plan to boost consumer spending unveiled in March said that workers’ rights to rest and vacation should be guaranteed and paid leave should be encouraged [[3]].
Share Transactions
Share transactions from 1 APR’25 – 22 APR’25 [[4]]:
Acquisitions
- Hyphens Pharma: Tan Kia King acquired 88,000 shares at \$0.285, new balance 86,770,759, stake 28.09% [[4]]
- Valuemax: Yeo Hiang Nam acquired 284,100 shares at \$0.50, new balance 740,731,124, stake 85.02% [[4]]
- Audience Analytics: Ng Yan Meng acquired 76,000 shares at \$0.28, new balance 191,387,000, stake 84.05% [[4]]
- Singpost: Temasek (via DBS) acquired 300,000 shares at \$0.51, new balance 495,558,681, stake 22.01% [[4]]
- UMS Integration: Catcher Tech Co Ltd acquired 950,000 shares at \$0.995, new balance 36,350,000, stake 5.12% [[4]]
- Zixing: Thomas Clive Khoo acquired 5,110,000 shares at \$0.027, new balance 179,320,000, stake 11.28% [[4]]
- Southern Alliance Mining: Pek Kok Sam acquired 105,600 shares at \$0.53, new balance 310,891,600, stake 63.61% [[4]]
Disposals
- CNMC Goldmine: Choo Chee Kong disposed of 750,000 shares at \$0.38, new balance 37,217,500, stake 9.18% [[4]]
- Digital Core REIT: Daiwa Securities disposed of 100,000 shares at US\$0.53, new balance 77,805,583, stake 5.99% [[4]]
Share Buyback
| Company |
No. of shares |
Price (\$) |
Cumulative Purchases Of Mandate (%) |
| Raffles Medical Group |
300,000 |
0.99 |
7,700,000 (4.1) |
| Capitaland Invest |
3,000,000 |
2.45 |
103,208,900 (40.6) |
| Global Investment Limited |
300,000 |
0.125 |
61,573,400 (38.2) |
| Venture |
25,000 |
10.73 |
2,533,300 (17.4) |
| Yangzijiang Shipbuilding |
1,000,000 |
2.06 |
15,000,000 (3.8) |
| SGX |
150,000 |
12.75 |
1,335,000 (1.2) |
| Pan United Corp |
60,000 |
0.60 |
2,912,400 (4.2) |
| DBS |
700,000 |
38.19 |
4,430,000 (5.2*) |
| UOB |
200,000 |
35.30 |
6,380,000 (7.6) |
| OCBC |
400,000 |
16.42 |
702,600 (0.3) |
| Innotek |
671,500 |
0.366 |
671,500 (2.9) |
| OXLEY |
550,000 |
0.065 |
6,971,300 (3.3) |
| ST Engineering |
500,000 |
6.27 |
9,000,000 (14.4) |
| SEATRIUM |
2,900,000 |
1.81 |
32,892,000 (48.2) |
| Valuetronics |
200,000 |
0.604 |
6,929,500 (16.9) |
| SIA |
517,500 |
6.27 |
6,534,000 (4.4) |
| Olam |
250,000 |
0.94 |
10,250,000 (5.4) |
| Zheneng Jinjiang |
150,000 |
0.44 |
14,181,900 (9.8) |
| 17 Live |
33,800 |
0.78 |
1,489,300 (8.4) |
*5.2% of current buy back maximum mandate of 85,328,308 shares [[4]]
*15.3% of DBS’ \$3billion buy back target absolute \$ mandate [[4]]
Institutional and Retail Fund Flows
Top 10 Institution Net Buy (+) Stocks (S\$M) Week of 14 Apr
- Singtel 157.1 [[5]]
- DBS 59.3 [[5]]
- ST Engineering 38.9 [[5]]
- UOB 37.2 [[5]]
- SGX 28.8 [[5]]
- ComfortDelGro 9.7 [[5]]
- Frasers Centrepoint Trust 9.6 [[5]]
- SIA 8.9 [[5]]
- Seatrium 7.7 [[5]]
- Keppel DC REIT 5.2 [[5]]
Top 10 Institution Net Sell (-) Stocks (S\$M) Week of 14 Apr
- Wilmar International (19.7) [[5]]
- OCBC (17.3) [[5]]
- Sembcorp Industries (7.6) [[5]]
- CapitaLand Ascendas REIT (7.3) [[5]]
- CapitaLand Investment (6.6) [[5]]
- Venture Corporation (6.5) [[5]]
- CapitaLand Integrated Commercial Trust (6.1) [[5]]
- Yangzijiang Shipbuilding (5.6) [[5]]
- Yangzijiang Financial (5.2) [[5]]
- ESR REIT (5.0) [[5]]
Top 10 Retail Net Buy (+) Stocks (S\$M) Week of 14 Apr
- OCBC 29.0 [[5]]
- Yangzijiang Shipbuilding 18.3 [[5]]
- Wilmar International 7.8 [[5]]
- Yangzijiang Financial 7.1 [[5]]
- Keppel 6.5 [[5]]
- SATS 5.1 [[5]]
- Venture Corporation 4.8 [[5]]
- Aztech Global 4.3 [[5]]
- CapitaLand Investment 4.0 [[5]]
- UOB 3.4 [[5]]
Top 10 Retail Net Sell (-) Stocks (S\$M) Week of 14 Apr
- Singtel (102.1) [[5]]
- SGX (28.0) [[5]]
- ST Engineering (25.1) [[5]]
- DBS (15.8) [[5]]
- Frasers Centrepoint Trust (10.4) [[5]]
- SIA (9.6) [[5]]
- ComfortDelGro (8.0) [[5]]
- CapitaLand Ascendas REIT (7.7) [[5]]
- Seatrium (6.1) [[5]]
- Frasers Logistics & Commercial Trust (5.2) [[5]]
Institutional investors net buy (+S\$273.0m) vs. (-S\$178.9m) a week ago [[5]]
Retail investors net sell (-S\$161.8m) vs. (+S\$776.0m) a week ago [[5]]
Institutional Investors net buy/sell (S\$M) [[5]]
| Sector |
24-Mar-25 |
31-Mar-25 |
7-Apr-25 |
14-Apr-25 |
| Consumer Cyclicals |
(16.4) |
(7.3) |
6.4 |
(1.0) |
| Consumer Non-Cyclicals |
(2.9) |
8.6 |
29.8 |
(23.7) |
| Energy/Oil & Gas |
0.3 |
(0.2) |
0.1 |
0.1 |
| Financial Services |
(129.4) |
(262.6) |
(305.5) |
95.9 |
| Health care |
(0.6) |
1.6 |
1.9 |
0.6 |
| Industrials |
(34.2) |
(28.1) |
(48.4) |
64.9 |
| Materials & Resources |
(0.1) |
0.4 |
1.4 |
1.5 |
| Real Estate (excl. REITs) |
7.2 |
3.6 |
18.0 |
(7.2) |
| REITs |
(8.0) |
8.1 |
(54.7) |
(3.5) |
| Technology (Hardware/Software) |
(17.5) |
(18.7) |
(25.4) |
(9.9) |
| Telcos |
(27.6) |
131.2 |
188.8 |
161.5 |
| Utilities |
(2.0) |
25.6 |
8.5 |
(6.2) |
STI Constituents Fund Flow
| Stock |
Code |
Institution Net Buy (+) / Net Sell (-) (S\$M) |
Retail Net Buy (+) / Net Sell (-) (S\$M) |
| CapitaLand Ascendas REIT |
A17U |
(7.3) |
(7.7) |
| CapitaLand Integrated Commercial Trust |
C38U |
(6.1) |
(4.3) |
| CapitaLand Investment |
9CI |
(6.6) |
4.0 |
| City Developments |
C09 |
(2.1) |
(2.9) |
| DBS |
D05 |
59.3 |
(15.8) |
| DFI Retail Group |
D01 |
1.8 |
(1.7) |
| Frasers Centrepoint Trust |
J69U |
9.6 |
(10.4) |
| Frasers Logistics & Commercial Trust |
BUOU |
2.8 |
(5.2) |
| Genting Singapore |
G13 |
(0.8) |
(0.4) |
| Hongkong Land |
H78 |
(4.0) |
(0.1) |
| Jardine Cycle & Carriage |
C07 |
(0.1) |
0.0 |
| Jardine Matheson |
J36 |
(0.1) |
(0.7) |
| Keppel |
BN4 |
5.0 |
6.5 |
| Mapletree Industrial Trust |
ME8U |
2.1 |
(1.8) |
| Mapletree Logistics Trust |
M44U |
1.4 |
(2.5) |
| Mapletree Pan Asia Commercial Trust |
N2IU |
(4.5) |
(3.8) |
| OCBC |
O39 |
(17.3) |
29.0 |
| SATS |
S58 |
(3.4) |
5.1 |
| Seatrium |
5E2 |
7.7 |
(6.1) |
| Sembcorp Industries |
U96 |
(7.6) |
3.2 |
| SIA |
C6L |
8.9 |
(9.6) |
| SGX |
S68 |
28.8 |
(28.0) |
| ST Engineering |
S63 |
38.9 |
(25.1) |
| Singtel |
Z74 |
157.1 |
(102.1) |
| Thai Beverage |
Y92 |
(2.5) |
(0.7) |
| UOB |
U11 |
37.2 |
3.4 |
| UOL Group |
U14 |
(2.4) |
0.2 |
| Venture Corporation |
V03 |
(6.5) |
4.8 |
| Wilmar International |
F34 |
(19.7) |
7.8 |
| Yangzijiang Shipbuilding |
BS6 |
(5.6) |
18.3 |
| Overall Net Buy (+) / Net Sell (-) (S\$M) |
|
264.2 |
(146.5) |
Retail Investors net buy/sell (S\$M) [[6]]
| Sector |
24-Mar-25 |
31-Mar-25 |
7-Apr-25 |
14-Apr-25 |
| Consumer Cyclicals |
1.9 |
5.2 |
7.1 |
0.2 |
| Consumer Non-Cyclicals |
(13.0) |
(13.5) |
(11.2) |
6.1 |
| Energy/Oil & Gas |
0.4 |
1.7 |
0.3 |
(1.1) |
| Financial Services |
(164.0) |
660.5 |
729.3 |
(0.0) |
| Health care |
3.1 |
(1.9) |
(5.7) |
(0.9) |
| Industrials |
15.2 |
83.6 |
58.3 |
(25.8) |
| Materials & Resources |
(0.0) |
(1.0) |
(1.4) |
(2.1) |
| Real Estate (excl. REITs) |
(5.2) |
1.6 |
(11.0) |
(5.0) |
| REITs |
(6.3) |
(87.2) |
99.3 |
(38.2) |
| Technology (Hardware/Software) |
21.8 |
34.4 |
30.1 |
9.7 |
| Telcos |
(14.3) |
(104.8) |
(107.7) |
(106.7) |
| Utilities |
(4.2) |
(18.1) |
(11.4) |
1.9 |
Dividends/ Special Distributions/ Others
(LIST IS NOT EXHAUSTIVE) [[7]]
| Company |
Amount |
First Day Ex-Dividend Date |
Payable |
| Yangzijiang Financial Holdings Ltd |
3.45 cts Final |
24 Apr |
15 May |
| OCBC |
41 cts Final & 16 cts Special |
25 Apr |
9 May |
| Propnex Ltd |
3 cts Final & 2.5 cts Special |
25 Apr |
8 May |
| Keppel Ltd |
19 ct Final |
28 Apr |
9 May |
| UOB |
92 cts Final & 25 cts Special |
28 Apr |
13 May |
| SCI |
17 cts Final |
30 Apr |
13 May |
| Audience Analytics |
1.5 cts Final |
2 May |
13 May |
| City Dev |
8 cts Final |
2 May |
20 May |
| YZJ Shipbuilding |
12 cts Final |
2 May |
13 May |
| SBS Transit |
14.69 cts Final & 8.41 cts Special |
2 May |
13 May |
| Sheng Siong Group |
3.2 cts Final |
2 May |
16 May |
| Olam |
3.0 cts Final |
5 May |
14 May |
| Haw Par Corp |
20 ct Final & \$1 Special |
5 May |
21 May |
| Venture Corp |
50 cts Final |
5 May |
19 May |
| Hong Leong Finance |
10ct Final |
5 May |
22 May |
| Comfort Delgro |
4.25 cts Final |
5 May |
14 May |
| Soilbuild Construction |
1 ct Final & 1 ct Special |
6 May |
19 May |
| Samudera |
1 ct Final & 5.8 ct Special |
7 May |
20 May |
| UMS |
2 cts Final |
7 May |
23 May |
| China Sunsine |
2 cts Final & 1 ct Special |
7 May |
22 May |
| Indofood Agri Resources Ltd |
1ct Final |
7 May |
28 May |
| Innotek Ltd |
2 ct Final |
8 May |
23 May |
| Wee Hur |
7 ct Special |
8 May |
2
|
