STI Slips Amid Global Market Challenges

Singapore’s Straits Times Index (SGX: ^STI) fell 2.43% this week (ending 20 December 2024), closing at 3,719.93, down 90 points from the previous week’s 3,810.35. The local market faced broad declines as concerns over global economic conditions weighed on investor sentiment.

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CapitaLand Investment, CLI (SGX: 9CI) announced two major moves this week. Its subsidiary, The Ascott Ltd, sold its stapled securities in CapitaLand Ascott Trust (SGX: HMN) for S$162 million. Separately, CLI plans to acquire the property and corporate credit investment management business of Wingate Group in Australia for A$200 million (S$173 million), boosting its funds under management to S$115 billion. Shares of CLI are down about 3% through the week.

CapitaLand Ascendas REIT (SGX: A17U) announced the S$150.3 million acquisition of the DHL Indianapolis Logistics Center in Indiana, marking its first sale-and-leaseback deal in the U.S. The REIT ended the week unchanged at S$2.55.

Cromwell European REIT (SGX: CWBU) is refinancing loans on three Dutch office assets with a higher-rate €82.4 million (S$116.9 million) facility. A €4 million sponsor contribution will offset added costs, ensuring stable distributable income. Cromwell closed at €1.56, down over 3% through the week.

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Jardine Matheson Holdings (SGX: J36) continued its decline, losing over 7% of its value this week. In August, the group had reported a US$550 million underlying net profit for the first half of 2024, down 33% year-on-year.

In Europe, the Stoxx 600 posted its second consecutive weekly decline, losing 2% overall. The healthcare sector weighed on performance, with Novo Nordisk falling on disappointing trial results for its obesity drug.

In the U.S., the Dow extended its losing streak to three weeks, the S&P 500 marked its second consecutive weekly drop, and the Nasdaq ended a four-week winning run. Even though markets rallied in the later part of the week, it wasn’t enough to recover the losses.

Inflation did not rise as much as analysts expected. While the Fed announced its third interest-rate cut of the year, it also signaled a slower pace of future reductions in 2025.

Amid U.S. market movements, Enphase Energy (ENPH) surged 8.6%, benefiting from improved sentiment and the launch of its home battery system in India. Meanwhile, Palantir Technologies (PLTR) rose 8.5% after extending a U.S. Army contract and confirming its addition to the Nasdaq 100 Index next week.

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Joanna Sng owns shares of CapitaLand Ascendas REIT and Capitaland Ascott Trust.

The post Weekly Singapore Stock Market Round Up: STI Slips Amid Global Market Challenges appeared first on The Smart Investor.