Singapore stock preview: SIA, AEM, Mapletree Industrial Trust, SGX
SGX-ST mainboard stocks to note for the week of 14 September 2020.
Mapletree Industrial Trust (SGX: ME8U)
Mapletree Industrial Trust has entered into a sale, purchase and escrow agreement with an unrelated third-party vendor for the proposed acquisition of a data centre and office for a consideration sums of between S$272.8 million and S$356.5 million.
The property, located in Virginia, US, is fully leased on a triple net basis with a balance lease term of more than five years to a multinational company.
The property has a valuation of between S$278.8 million and S$361.8 million as of 31 August 2020 from Cushman & Wakefield in North Carolina.
The valuations are respectively 2.2% and 1.5% higher than the purchase considerations.
Mapletree Industrial Trust shares rose 0.64% on Monday (14 September 2020) morning. Shares are trading at S$3.14 as at 11:15 SGT.
The stock has an average rating of ‘buy’ from 16 brokers polled by Refinitiv.
Singapore Exchange (SGX: S68)
Singapore Exchange (SGX) reported its August 2020 market statistics last Friday 11 September 2020, in which total securities market turnover jumped 18% year-on-year to S$28.1 billion.
Meanwhile, equity index futures declined 11% year-on-year to 14.9 million contracts, as volatility of underlying Asian markets returned to more normal levels.
Commodities managed a 10% month-on-month gain in volume amid China’s reopening and hedging activity. Iron ore derivatives recorded volume of 2.1 million contracts, up 13% month-on-month as iron ore futures prices flirted with a multi-year high.
SGX shares opened at S$8.52 each on Monday 14 September 2020, rising 0.5% thirty minutes later.
The stock currently has an average rating of ‘hold’ from 13 brokers polled by Refinitiv.
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SIA (SGX: C6L)
Singapore Airlines (SIA) Group announced last Thursday (10 September 2020) that it would cut around 4,300 positions across its three airlines – flagship carrier SIA, regional arm SilkAir and low-cost wing Scoot.
Shares fell 1.4% within minutes of the market opening on Monday 14 September 2020 to S$3.53 each.
The stock currently has an average 12-month target price of S$3.41 a share from 11 analysts polled by Bloomberg, as of 10 September 2020. This represents a downside of 3.4% from the last traded price.
Eight brokers have rated the stock a ‘hold’, while four gave ‘sell’ recommendations.
AEM Holdings (SGX: AWX)
Last Thursday, electronics company AEM Holdings Ltd raised its full-year revenue guidance for fiscal 2020 by roughly 4% to between S$480 million to S$500 million.
AEM shares soared as much as 10.6% a day after the group raised its revenue guidance for the full 2020 financial year.
This week, the stock opened at S$3.68 per share, and rose to S$3.75 at 10:00 SGT on the IG platform.
Following the guidance revision, Maybank analysts on Friday raised their AEM target price by 19% to S$5.05, up from S$4.04 previously. Rating remained unchanged at ‘buy’.
The stock currently has a mean 12-month target price of S$4.56, according to Refinitiv analyst ratings. This represents a potential stock upside of around 24%.
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