Unlike previous mid-term elections, this year was especially critical for the Republican-controlled US Congress as they are driving on the populist policies. Meanwhile, for the Grand Old Party (GOP), domestic economic conditions have been buoyed by low unemployment, reduction in corporate taxes, strong corporate earnings, and the generally mild inflationary conditions, among others.
For the past few weeks, the two largest supermarket operators, Sheng Siong Group (Sheng Siong) and Dairy Farm International (Dairy Farm) have reported less than stellar sets of financial results.
In the midst of an anticipated European economy slowdown, along with the tussle over the terms of UK’s exit from the European Union (EU) in March 2019, the ongoing uncertainties over Italy’s budget deficit woes, and the US-China trade tensions, many investors are questioning where are the value or so-called ‘safe-haven’ equities one can turn to.
If you have been living in the cave for the past month. Guess what? The month of October 2018 took the fright out of many investors with the MSCI World Index Exchange Traded Fund (URTH) plunging down by 9.6 per cent, erasing all gains made since the beginning of 2018. To from January to end-October, the ETF is down 0.7 percent. While the performance in October mirrored that of S&P500 index, the yearly performance of the URTH ETF lagged the S&P500’s return of 4.3 percent.
After the Urban Redevelopment Authority (URA) released the final 3Q18 private property index data on 26 October 2018, all eyes are on the stock price performance of several property counters, including the bulge bracket names like CapitaLand, City Developments (CityDev), and UOL.
With lots of uncertainties surrounding the efforts made by the beleaguered Hyflux in trying to stem off possible liquidation threats from creditors, it finally got a lifeline of $530 million from a consortium led by Indonesia-listed Salim Group, and the Medco Group (SM Investments). The former is led by the renowned Indonesian tycoon Anthony Salim, while the latter is an integrated energy and natural resources company which supplies the West Natuna Transportation System Pipeline that delivers gas to Singapore.
Has anyone told you that the stock prices of many corporations listed in the United States are due for deep correction? Likewise, have you heard or seen anyone panicking as the Dow Jones Industrial Index (DJIA) fell 500 to 800 points in a day during the past few weeks? Well, most investors will feel uneasy seeing headlines like this. In periods like this, investors are pressured to sell and cower underneath the blanket. In the midst of these chaotic moments, it is even more important to pay attention to the market fundamentals, earnings, and most importantly, keeping one’s emotions in check.
Following the conclusion of the privatisation of Wheelock Properties Singapore (WPS) on 2 October 2018 at $2.10 per share, and the subsequent delisting of the entity on 18 October, all eyes are on Hotel Properties (HPL) where WPS owns a 40 percent equity stake in 68 Holdings, which in turn owns a 56 percent interest in HPL. Readers might recall in April 2014, local property magnate Ong Beng Seng, through his investment vehicle, 68 Holdings and WPS launched a $3.50 cash offer for HPL and the total investment value of the deal was worth $748.93 million.
Temasek Holdings (TH) has announced on 16 October 2018 that it will be issuing a five-year corporate bond with a coupon rate of 2.7 per cent per annum payable semi-annually on 25 April and 25 October each year, and maturing on 25 October 2023. The T2023 – S$ bond is issued through Temasek’s wholly-owned subsidiary, Temasek Financial (IV) Private Limited, under its $5 billion Guaranteed Medium Term Note Programme.
With a rising interest rate environment comes the dilemma among investors when it comes to choosing between property developers or real estate investment trusts (REITs) counters. The recent buoyancy in new home sales and news headlines about potential home price appreciation (HPA) have warranted some attention among real estate type stocks, be it developers or Reits stocks. What would be the impacts of rising interest rates and debt levels on these two sectors?