Key Indices
Top Stories
Company Update | Singapore Telecommunications (ST SP/BUY/S$4.52/Target: S$5.50)
- Singtel aims to lift ROIC by leveraging on Optus ARPU uplift and EBIT margin expansion while deploying resources to high growth businesses, namely NCS, RE: AI and Nxera. There is also room to unlock value in Nxera, suggesting either a tax-efficient REIT structure or listing of Nxera. An IPO could fetch an equity value of S$4b-4.5b for Nxera. Maintain BUY with an SOTP-based target price of S$5.50.
Market Spotlight
- US stocks were lower on Thursday, with all three major indexes declining as the materials, utilities and information technology sectors fell. There were more decliners than advancers on both the NYSE and the Nasdaq.
- The FSSTI fell 39.88pt to 5,689.75, on the back of weakness in DBS, SATS and Singtel, with mid-cap indices falling while small-cap indices rose with a broad market decline on S$1.80b turnover.
Technical Analysis
CSE Global (CSE SP)
- Trading Buy Range: S$1.24-1.25
Parkway Life Real Estate Investment Trust (PREIT SP)
- Trading Sell Range: S$4.06-4.07
Top Stories
Company Update | Singapore Telecommunications (ST SP/BUY/S$4.52/Target: S$5.50)
- Singtel aims to lift ROIC by leveraging on Optus ARPU uplift and EBIT margin expansion while deploying resources to high growth businesses, namely NCS, RE: AI and Nxera. There is also room to unlock value in Nxera, suggesting either a tax-efficient REIT structure or listing of Nxera. An IPO could fetch an equity value of S$4b-4.5b for Nxera. Maintain BUY with an SOTP-based target price of S$5.50.
Market Spotlight
- US stocks were lower on Thursday, with all three major indexes declining as the materials, utilities and information technology sectors fell. There were more decliners than advancers on both the NYSE and the Nasdaq.
- The FSSTI fell 39.88pt to 5,689.75, on the back of weakness in DBS, SATS and Singtel, with mid-cap indices falling while small-cap indices rose with a broad market decline on S$1.80b turnover.
Technical Analysis
CSE Global (CSE SP)
- Trading Buy Range: S$1.24-1.25
Parkway Life Real Estate Investment Trust (PREIT SP)
- Trading Sell Range: S$4.06-4.07
Key Indices
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