With current enthusiastic responses towards artificial intelligence (AI) and a strong end to the US earnings season for March, this resulted in US markets hitting record highs. Global markets are subsequently higher, with STI seeing an increase of 2.6% month-on-month (m-o-m).
UOBKH attributes its broad-based outperformance to its top performers, Riverstone, Yangzijiang Shipbuilding (YZJ) and Singapore Telecommunications(Singtel). Due to improving sequential earnings for the last quarter of 2023, Riverstone saw a sharp increase of 30.8% m-o-m. Additionally, YZJ increased by 9.1% m-o-m resulting from its promising 2024 outlook. Singtel similarly benefitted from its potential shareholder value arising from market speculation of its decision to sell its Australian business, increasing by 7.7% m-o-m.
Add LREIT and CSE Global
For its April 2024 portfolio, UOBKH has added Lendlease Global Commercial REIT(LREIT) following the recovery of LREIT’s 313@Somerset mall in Orchard. The team has also included CSE Global (CSE) with a forecasted earnings growth boosted by its record-high order book respectively.
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Analyst Jonathan Koh has kept his “buy” call on LREIT with a target price of 93 cents with the outperformance of 313@Somerset. The REIT obtained a “strong positive” rental reversion of 15.7% in 2QFY2024; 313@Somerset’s rental reversion came in over 20% while Jem’s stood at 10%.
With the construction of a multi-functional event space at Grange Road Car Park and the potential lease to Live Nation, this further enhancement of the downtown mall is expected to attract more youths, says Koh.
Analysts John Cheong and Heidi Mo have also kept their “buy” call on CSE Global with a target price of 56 cents with the company’s promising demand from reputable institutional and accredited investors. Since completing a share placement valued at an issue price of 40 cents per share, CSE has issued sixty million new ordinary shares which hit $24 million and $23.2 million in gross and net proceeds respectively.
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“The strong support from investors illustrates confidence in CSE’s growth potential, with opportunities arising on the back of megatrends such as urbanisation, electrification and decarbonisation,” say the analysts.
MINT, Food Empire and Civmecremoved
The team’s April 2024 portfolio also marks the removal of Mapletree Industrial Trust(MINT), Food Empire Holdings(FEH) and Civmec due to the absence of near-term catalysts.
The STI closed 25.06 points lower or 0.77% down at 3,222.66 points on April 3.
