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Ascendas Reit shares rise to new peak: Where next?

Shares of Ascendas Real Estate Investment Trust (Ascendas Reit) (SGX: A17U) are up 2% at the start of the week, after reporting higher first-half distributable income for fiscal 2020. Ascendas Reit shares are trading at S$3.54 each – a new all-time high – as at 11:55 SGT on Monday 27 July 2020. This surpasses the…

Ascendas Reit share price: What’s the latest?

Shares of Ascendas Real Estate Investment Trust (Ascendas Reit) (SGX: A17U) are up 2% at the start of the week, after reporting higher first-half distributable income for fiscal 2020.

Ascendas Reit shares are trading at S$3.54 each – a new all-time high – as at 11:55 SGT on Monday 27 July 2020. This surpasses the stock’s previous peak of S$3.48 achieved in March 2020.

IG’s market analysis show that ‘buy’s form 52% of all trades on the A Reit counter so far this month.

Ascendas Reit’s DPU (dividend) declines 10.8% in H1 2020

Ascendas Reit – Singapore’s largest REIT by market capitalisation at nearly S$13 billion – reported that gross revenue for the six months ended 30 June 2020 (H1 FY2020) rose by 14.6% year-on-year to S$521.2 million.

The group said the increase was mainly contributed by its US portfolio of 28 business park properties and two Singapore business park properties, which were acquired in December 2019.

However, it also noted that the stronger revenue was partially offset by the Covid-19 rent relief support provided to tenants, as well as the divestment of Wisma Gulab in January 2020 and lower occupancies of certain properties

Net property income for the first six months of 2020 rose 11.2% to S$388 million, on the back of lower property tax expenses in H1 2019 due to the retrospective downward revisions in the annual value of certain properties.

Consequently, total income available for distribution for H1 FY2020 rose 3.7% from H1 FY2019 to S$263.2 million.

Despite the higher distributable income, distribution per unit (DPU) – dividends in Reit terms – declined 10.8% year-on-year to S$0.0727, after taking into consideration an enlarged number of applicable units (+16.3%) in issue mainly due to December 2019’s rights issue.

Are you looking to trade Ascendas Reit shares? Start today by opening a live or demo IG account.

Where do analysts see the A Reit share price going next?

Following Ascendas Reit’s latest earnings, top investment analysts have raised their share price targets on the stock.

Jefferies increased their 12-month price targets on Ascendas Reit to S$3.80 a share from S$3.50, DBS from S$3.45 to S$4 a share, while CIMB brokers revised it to S$3.12 a share from S$3 previously.

In its note, DBS gave the stock a ‘buy’ call, citing that the company’s business parks exposure could potentially ‘benefit from the future trend towards decentralised offices as more companies adopt flexible working arrangements’.

The analysts also forecasted that Ascendas Reit could acquire an estimated S$500 million in assets by the end of fiscal 2020, which they say could spur new growth momentum for the company.

‘We believe the next billion in deals will likely come from its Singapore business park properties in the one-north region, which its sponsor may be looking to divest and should be well received by investors,’ they added.

On the other hand, it is worth noting for investors that CIMB analysts downgraded the stock to a ‘hold’ rating from add’, as they see limited near-term upsides following its recent share price. Ascendas Reit’s share price has increased nearly 9% since mid-July 2020.

CIMB also lowered its dividend (DPU) estimates for the company by 2.2% for FY 2020 and 2.6% for FY 2022 in light of changes in its portfolio occupancy, as well as ‘near-term drags’ in the form of S$20 million of tenant rent reliefs.

As at 12:50 SGT on 27 July, IG data show that 68% of clients hold ‘short’ positions on the stock and expect A Reit’s share price to decline.

How to trade Ascendas Reit with IG

Are you feeling bullish or bearish on Ascendas Reit and other Singapore real estate stocks? Either way you can buy (long) or sell (short) the asset using derivatives like CFDs offered on IG’s industry-leading trading platform in a few easy steps:

  • Create a live or demo IG Trading Account, or log in to your existing account
  • Enter <Ascendas Real Estate Investment Trust> in the search bar and select the instrument
  • Choose your position size
  • Click on ‘buy’ or ‘sell’ in the deal ticket
  • Confirm the trade
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Industry News

School4Trading Review – How to Spot Possible Forex Broker Fraud

School4trading Review

School4Trading Review – How to Spot Possible Forex Broker Fraud

In this School4trading Review, we will look at the features of the software, as well as the customer support. First, let us look at the interface. The design is simple and easy to navigate. It also provides a chatbot, which helps you to communicate with the broker. The customer service is warm and inviting, which is a hallmark of a good broker. In contrast, a fraudulent broker will use cold and impersonal customer support to lure people in.

Another problem with the system is that the login process is not always intuitive. You may have to retype your password several times to get in. Then, you may experience difficulties withdrawing your funds or accessing your account. In such cases, you might have to wait for days or even weeks before you can withdraw the money you’ve invested. This is not a good sign. It’s better to choose a different trading platform altogether.

If you’re having trouble logging in, you should also check the legitimacy of the broker. Whether the broker is licensed by a reliable regulatory body or closed down, you’ll want to be sure it’s legitimate. If the broker isn’t licensed by the right body, don’t trust him. You shouldn’t waste your time with an inexperienced company. This will only cause you problems in the long run.

The next factor that should be checked is the licensing. A legitimate broker will have a license from a high regulatory body. However, a broker without a license will be unreliable. Moreover, a reliable regulator will take away the license of a scam broker. As a result, a trustworthy School4Broker/Profittrade review should mention fees, account rules, and contract terms. A scam broker will be unable to operate legally.

Secondly, look for warning signs. The broker should be licensed and regulated by a reliable regulatory body. It should be regulated by a high level. If it doesn’t, it’s a scam. Lastly, it should have a website that lets you easily access your account. Moreover, you should not hesitate to check the contact information. If you find any information that seems suspicious, you should reconsider using the broker.

In summary, Forex trading isn’t easy, but it doesn’t have to be complicated. It’s not as difficult as it seems if you’ve heard about the program. You’ll learn everything about the basics and how to become a professional. But if you’re still unsure about whether this program is right for you, don’t hesitate to contact a school4trading’s website.

The most important thing to remember when it comes to Forex trading is that it’s not easy. While it’s important to have a strong background in trading, there are a number of factors that can affect your success. Having a proper plan is vital in the long run, because you will be trading with real money. And, the platform should be reliable. Otherwise, you’ll end up losing a lot of money.

As we’ve mentioned, Forex is not easy. Investing isn’t something you can do in the comfort of your own home. You need a proven system. There are no free trials, so you’ll have to find a way to do it yourself. This isn’t a scam, and it’s a great way to make money without any help. A Forex system can help you learn the intricacies of the market.

Although the process of learning Forex isn’t an easy one, it’s certainly not impossible. Fortunately, there are many people who are willing to take the time to learn how to trade. But, even the most experienced trader needs to be aware of the risks of the market. While Forex trading isn’t easy, it can be done with the right knowledge. The software’s user-friendly interface is key.

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Daily Financial News

Don’t Count On JPY Correction; Staying Long GBP/JPY

The path of the potential pace of the JPY decline may still be underestimated by markets, which continue trading the JPY long.

While the 10% USDJPY advance from September lows looks impressive from a momentum point of view, it may no thave been driven by Japan’s institutional investors reducing their hedging ratios or Japan’s household sector reestablishing carry trades.

Instead, investors seemed to have been caught on the wrong foot, concerned about a sudden decline of risk appetite or the incoming US administration being focused on trade issues and not on spending. Spending requires funding and indeed the President-elect Trump’s team appears to be focused on funding. Here are a few examples: Reducing corporate taxation may pave the way for US corporates repatriating some of their USD2.6trn accumulated foreign profits. Cutting bank regulation could increase the risk-absorbing capacity within bank balance sheets. Hence, funding conditions – including for the sovereign – might generally ease. De-regulating the oil sector would help the trade balance, slowing the anticipated increase in the US current account deficit. The US current account deficit presently runs at 2.6% of GDP, which is below worrisome levels. Should the incoming government push for early trade restrictions, reaction (including Asian sovereigns reducing their holdings) could increase US funding costs, which runs against the interest of the Trump team.

Instead of counting on risk aversion to stop the JPY depreciation, we expect nominal yield differentials and the Fed moderately hiking rates to unleash capital outflows from Japan.The yield differential argumenthas become more compelling with the BoJ turning into yield curve managers. Via this policy move, rising inflation rates push JPY real rates and yields lower, which will weaken the JPY. Exhibit 12 shows how much Japan’s labor market conditions have tightened. A minor surge in corporate profitability may now be sufficient, pushing Japan wages up and implicity real yields lower.

JPY dynamics are diametrical to last year . Last year, the JGB’s “exhausted”yield curve left the BoJ without a tool to push real yields low enough to adequately address the weakened nominal GDP outlook. JPY remained artificially high at a time when the US opted for sharply lower real yields. USDJPY had to decline, triggering JPY bullish secondround effects via JPY-based financial institutions increasing their FX hedge ratios and Japan’s retail sector cutting its carry trade exposures. Now the opposite seems to be happening. The managed JGB curve suggests rising inflation expectations are driving Japan’s real yield lower. The Fed reluctantly hiking rates may keep risk appetite supported but increase USD hedging costs.Financial institutions reducinghedge ratios and Japan’s household sector piling back into the carry trade could provide secondround JPY weakening effects

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Daily Financial News

Mexico raises interest rates, cites Trump as risk

The head of Mexico’s central bank says U.S. Republican candidate Donald Trump represents a “hurricane” sized threat to Mexico.

Banco de Mexico Gov. Agustin Carstens told the Radio Formula network Friday that a Trump presidency “would be a hurricane and a particularly intense one if he fulfills what he has been saying in his campaign.”

Trump has proposed building a wall along the border and re-negotiating the North American Free Trade Agreement.

Mexico’s central bank raised its prime lending rate by half a percent to 4.75 percent Thursday, citing “nervousness surrounding the possible consequences of the U.S. elections, whose implications for Mexico could be particularly significant.”

Mexico’s peso had lost about 6 percent in value against the dollar since mid-August. It recovered slightly after the rate hike

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