Key Indices
Top Stories
Sector Update | REITs
- Yield spreads for S-REITs have expanded by 29bp to 4.06%, which is 2SD above the long-term mean, as unit prices and 10-year Singapore bond yield pulled back concurrently in Oct 26. Maintain OVERWEIGHT. S-REITs remain defensive and resilient. BUY CICT (Target: S$3.11), LREIT (Target: S$0.80), MPACT (Target: S$1.67), NTTDCR (Target: US$1.29) and UIBREIT (Target: S$1.16).
Company Update | Centurion Corp (CENT SP/BUY/S$1.28/Target: S$2.05)
- CENT has embarked on a significant growth reinvestment path with about S$750m in announced land and property acquisitions within its geographic footprint in 2026 ytd. We estimate these new and ongoing development projects could generate around S$2b in attributable GDV, and boost EBIT and NAV by 10-30% when completed. Despite capex funding needs, we expect gearing to remain well below its targeted optimal limit, with a healthy ICR over the next few years. Maintain BUY with a revised target price of S$2.05.
Market Spotlight
- US stocks were higher on Wednesday. All indices rose as information technology, industrials and financials sectors rose. There were more advancers than decliners on NASDAQ and NYSE.
- The FSSTI rose 33.97 points to 5,437.99, on the back of strength in OCBC Bank and DBS. Both mid- and smallcap indices rose with a broad market advance on S$1.78b turnover.
Technical Analysis
Bumitama Agri (BAL SP)
Trading Buy Range: S$1.69-1.70
Sembcorp Industries (SCI SP)
Trading Buy Range: S$6.01-6.02
Top Stories
Sector Update | REITs
- Yield spreads for S-REITs have expanded by 29bp to 4.06%, which is 2SD above the long-term mean, as unit prices and 10-year Singapore bond yield pulled back concurrently in Oct 26. Maintain OVERWEIGHT. S-REITs remain defensive and resilient. BUY CICT (Target: S$3.11), LREIT (Target: S$0.80), MPACT (Target: S$1.67), NTTDCR (Target: US$1.29) and UIBREIT (Target: S$1.16).
Company Update | Centurion Corp (CENT SP/BUY/S$1.28/Target: S$2.05)
- CENT has embarked on a significant growth reinvestment path with about S$750m in announced land and property acquisitions within its geographic footprint in 2026 ytd. We estimate these new and ongoing development projects could generate around S$2b in attributable GDV, and boost EBIT and NAV by 10-30% when completed. Despite capex funding needs, we expect gearing to remain well below its targeted optimal limit, with a healthy ICR over the next few years. Maintain BUY with a revised target price of S$2.05.
Market Spotlight
- US stocks were higher on Wednesday. All indices rose as information technology, industrials and financials sectors rose. There were more advancers than decliners on NASDAQ and NYSE.
- The FSSTI rose 33.97 points to 5,437.99, on the back of strength in OCBC Bank and DBS. Both mid- and smallcap indices rose with a broad market advance on S$1.78b turnover.
Technical Analysis
Bumitama Agri (BAL SP)
Trading Buy Range: S$1.69-1.70
Sembcorp Industries (SCI SP)
Trading Buy Range: S$6.01-6.02
Key Indices
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This report is provided subject to, and must be read together with, the full Disclosures / Disclaimers available at this link, which are incorporated by reference into this report. In particular, this report is intended for general circulation and informational purposes only and does not constitute personal investment advice or a recommendation to buy or sell any investment product or security. You should independently evaluate the information and, where necessary, seek advice from a qualified financial adviser regarding the suitability of any investment. Analyst certifications required under applicable regulations, including SEC Regulation AC (where relevant), are included in this report. By accessing, receiving or using this report, you acknowledge that you have read, understood and agreed to be bound by the Disclosures / Disclaimers, as may be amended, supplemented or updated from time to time.
