KUALA LUMPUR, Dec 16 (Bernama) -- Bursa Malaysia extended its positive performance, closing higher for a fourth consecutive session, supported by improving local market sentiment underpinned by a firm domestic macroeconomic backdrop. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.59 points, or 0.28 per cent, to 1,648.31, from Monday’s close of 1,643.72. The index had opened 0.95 of a point lower at 1,642.77, and moved between 1,636.50 and 1,648.71 throughout the trading session However, on the broader market, decliners beat gainers 699 versus 408. A further 520 counters were unchanged, 1,149 untraded and 12 suspended. Turnover rose to 2.59 billion units worth RM2.27 billion from 2.50 billion units worth RM2.16 billion on Monday.
Key Takeaways:
A US federal appeals court struck down Trump’s global tariffs, raising legal and trade uncertainty.
RHB expects falling yields to boost Singapore Reit demand, highlighting industrial and office names as top picks.
Singapore’s import and export prices continued to fall in July, underscoring global trade softness.
Nvidia and Tesla dragged US markets lower, while local counters such as CapitaLand Ascendas Reit, GuocoLand, and Oxley drew investor focus.
Singapore Market Opens Lower
Singapore equities began the week on a softer note, with the Straits Times Index (STI) slipping 0.37% to 4,253.89 at the open. Turnover reached S$110.4 million with 85 advancers against 64 decliners, reflecting cautious sentiment after Wall Street’s tech-led pullback.
US Tariffs Struck Down, But Uncertainty Persists
A federal appeals court ruled 7-4 against President Trump’s use of the International Emergency Economic Powers Act (IEEPA) to impose sweeping global tariffs. The court deemed the 10% baseline levies — alongside steeper duties on select countries — illegal.
For now, tariffs remain in effect until mid-October to allow for a possible Supreme Court appeal. Importantly, the ruling does not affect targeted tariffs on steel, aluminum, and other sectors, which remain in place. The legal setback injects new uncertainty into global trade dynamics at a time when Asian exporters are already grappling with shifting US-China trade tensions.
RHB Sees Opportunity in S-Reits as Yields Fall
RHB analyst Shekhar Jaiswal expects rising demand for Singapore Reits and high-dividend equities amid easing inflation and falling rates. The Singapore Overnight Rate Average (SORA) has eased from 3.02% to 1.61%, while 10-year Singapore Government Securities (SGS) yields have dropped from 2.86% to 1.81%, with projections for 1.68% by year-end.
Lower borrowing costs are expected to lift distribution yields for S-Reits, particularly within the industrial and office segments. RHB names CapitaLand Ascendas Reit (TP: S$3.20), Aims Apac Reit (TP: S$1.52), and Keppel Reit (TP: S$1.05) as preferred picks.
Singapore’s Trade Prices Slide
Singapore’s Import Price Index fell 6.1% YoY in July, with a sharp 17.7% drop in the oil index and a 2.4% decline in non-oil imports, led by electrical machinery. Export prices also declined 8.0% YoY, continuing the weakness from June. Persistent declines point to subdued trade momentum amid global demand uncertainties.
Market Movers to Watch
Nvidia (NVDA US) dropped 3.3% despite beating forecasts, as data-centre revenue fell short of lofty expectations.
Tesla (TSLA US) slid 3.5% after EU sales plunged 40% YoY in July, extending its two-day decline.
CapitaLand Ascendas Reit (A17U SG) announced redemption of S$300 million green perpetuals on Sept 17.
GuocoLand (F17 SG) agreed to sell a Johor Bahru hotel and land for RM150 million, booking an estimated RM35 million profit.
Oxley (5UX SG) narrowed its half-year loss to S$8.3 million from S$94.9 million a year earlier, aided by a 59.8% jump in revenue to S$198.3 million.
Outlook
With US tech weakness weighing on sentiment and tariff uncertainties resurfacing, Asian equities face a volatile start to September — historically a weak month for global markets. Still, falling domestic yields and improving Reit dynamics offer opportunities for Singapore investors seeking income and stability.
Comments
Post a Comment