Stock Market Today

Singapore stocks ended marginally lower on Tuesday (Apr 28), as the Middle East conflict concluded its second month and Brent crude prices climbed above the US$110-a-barrel mark. The benchmark Index slipped 0.1% or 5.04 points to close at 4,887.69.

US stocks closed lower on Tuesday, backing away from record closing highs as renewed concerns over the artificial intelligence boom weighed on technology stocks. The Dow Jones Industrial Average fell 25.86 points, or 0.05%, to 49,141.93, the S&P 500 lost 35.11 points, or 0.49%, to 7,138.80 and the Nasdaq Composite lost 223.30 points, or 0.90%, to 24,663.80.

SG

Boroo Pte. Ltd. has entered into an exclusivity agreement with the receiver of Victoria Gold Corp. for the potential acquisition of the Eagle Gold Mine in Yukon, Canada, as the Singapore-based mid-tier miner looks to expand its global portfolio of gold and copper assets.

USP Group, under judicial management, has agreed to sell a Malaysian industrial property in Shah Alam, Selangor through subsidiary Supratechnic Properties for RM20mn, subject to a formal S&P agreement, regulatory approvals, and discharge of the existing property charge.

Kim Heng Ltd has called off the S$13.5mn sale of its Penjuru Road waterfront yard property after JTC rejected the transaction as buyer Greentec Energy did not meet the requirements to purchase a waterfront yard facility, with the S$945,000 deposit to be refunded in full.

Stoneweg European Stapled Trust (SERT) reported a 1QFY2026 distribution of 3.423 Euro cents per stapled security, up 1.5% y-o-y, with distributable income rising 0.4% to EUR19.0mn despite lower revenue due to prior-year asset divestments.

US

Paramount Skydance has filed with the US Federal Communications Commission to approve foreign investment backing its Warner Bros Discovery acquisition, with Middle Eastern sovereign funds from Saudi Arabia, Abu Dhabi and Qatar set to hold just under 50% of equity while the Ellison family retains voting control.

American Airlines sold US$1.14bn in enhanced equipment trust certificates (EETCs) on 27 April, collateralised by 32 planes, priced in two tranches of 5.25% and 5.75% yields.

Alphabet’s Google has signed a deal with the US Department of Defense allowing the Pentagon to use its AI models for classified work including mission planning, joining OpenAI and xAI under agreements worth up to US$200mn each.

Source: SGX Masnet, Bloomberg, Channel NewsAsia, Reuters, CNBC, WSJ, The Business Times, The Edge Singapore, PSR

CapitaLand Ascott Trust – Resilience from stable income sources

Recommendation: BUY; TP S$1.08; Last close: S$0.9000; Analyst Darren Chan

• Limited financial details were disclosed in this business update. 1Q26 distributable income was stable YoY, supported by the release of past divestment gains (just under S$10mn) to offset income loss from the temporary closure of The Cavendish London (TCL) for renovations and Madison Hamburg for works at the carpark, as well as interest savings from lower rates.
• Excluding TCL, as well as acquisitions and divestments, 1Q26 portfolio RevPAU increased 1% YoY despite ongoing geopolitical tensions. On a reported basis, RevPAU declined 2.8% to S$137 mainly due to properties undergoing AEI. Portfolio occupancy remained stable YoY at 77%.
• Upgrade from ACCUMULATE to BUY with an unchanged DDM-TP of S$1.08 due to the recent share price weakness. CLAS remains our top pick in the hospitality sector, given its geographical diversification and broad-based guest mix. In addition, 67% of 1Q26 gross profit came from stable income sources, while its growing exposure to the living sector (18% of AUM) offers greater resilience across market cycles. We expect low single-digit portfolio RevPAU growth in FY26e, supported by the U.S. portfolio, which should benefit from stronger lodging demand ahead of the upcoming FIFA World Cup 2026. Management is expected to utilise past divestment gains to offset the earnings impact from The Cavendish London AEI through completion in 2027, underpinning stable FY26e DPU. The impact of the Middle East conflict on CLAS is likely to be limited, as utility costs are largely either borne by lessees or tenants, or fixed through at least end-2026. In addition, any moderation in international travel arising from the conflict and higher airfares could potentially be offset by stronger domestic and regional demand. The current share price implies an FY26e dividend yield of 6.8%.

First REIT – Portfolio restructuring in progress

Recommendation: ACCUMULATE; TP S$0.25; Last close: S$0.2400; Analyst Darren Chan

• 1Q26 DPU fell 13.8% YoY to 0.50 Singapore cents, coming in below expectations at just 22% of our FY26e forecast. The decline was mainly driven by weaker IDR and JPY against SGD, as well as the divestment of Imperial Aryaduta Hotel & Country Club. Excluding the divestment, revenue would still have declined 6.8% on a like-for-like basis.
• First REIT has proposed to divest eight hospitals to PT Siloam International Hospitals Tbk (Siloam) and three non-hospital assets in Indonesia for S$471.5mn, alongside a separate put option for the remaining six hospitals at S$294.8mn. The two-tranche divestment of its entire Indonesian portfolio is aimed at prioritising DPU stability and is subject to unitholders’ approval at an upcoming Extraordinary General Meeting (EGM).
• We maintain ACCUMULATE with an unchanged target price of S$0.25, pending completion of the divestments. Our valuation remains based on 1x FY25 P/NAV, reflecting uncertainty over the future portfolio composition, as no assets have been earmarked for acquisition and the REIT is expected to be cash-rich post-divestments. We estimate DPU could decline to c.1.6 cents (excluding special dividends) if the first tranche of divestments completes in Aug 2026. No updates were provided on potential acquisitions, as the ongoing strategic review continues to identify, evaluate and execute opportunities in the APAC region, with the aim of increasing exposure to developed markets.

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