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Keppel DC Reit share price: 3 key trading highlights from H1 2020

Keppel DC Real Estate Investment Trust (REIT) (SGX: AJBU) released its first half (H1) financial results for fiscal 2020 after the market closed on Tuesday 21 July 2020. Here are three main highlights from the data centre-focused REIT’s latest financial update.

Keppel DC Real Estate Investment Trust (REIT) (SGX: AJBU) released its first half (H1) financial results for fiscal 2020 after the market closed on Tuesday 21 July 2020.

Here are three main highlights from the data centre-focused REIT’s latest financial update.

1. Keppel DC Reit increases DPU (dividend) by 13.6%

The company saw its gross revenue increase by 29.8% year-on-year in the first half of 2020 ended 30 June 2020 to S$124 million.

Net property income grew 32.1% to S$114.2 million in H1 2020, up from S$86.5 million in H1 2019.

Property expenses increased slightly by 8.1% year-on-year to S$9.7 million.

In light of the above, the firm delivered a distributable income of S$75 million for H1 2020, 38% higher compared to H1 2019. It attributed the higher distributable income to the acquisitions of Keppel DC Singapore 4 and DC1 in the last quarter of 2019, as well as the addition of Kelsterbach Data Centre in May 2020.

Accordingly, Keppel DC REIT declared a distribution per unit (DPU) of S$0.0438 for H1 2020, 13.6% higher than H1 2019’s S$0.039.

Based on Keppel DC Reit’s closing share price of S$2.540 on 30 June 2020, the REIT’s annualised distribution yield was 3.44%.

Read more: 5 Singapore REITs to watch for the rest of 2020 – Far East Hospitality Trust, Keppel REIT, A-REIT, CapitaLand Mall Trust and Frasers Centrepoint Trust

2. Outlook: ‘well-positioned to benefit’ from data centre growth

Keppel DC Reit’s manager Keppel DC Reit Management believes that while many business sectors have been adversely hit by the Covid-19 pandemic, the technology sector continues to perform well, with widespread lockdowns encouraging the adoption of digital tools.

As such, the management believes that the data centre industry remains resilient, as it continues to support data storage and processing requirements of the digital economy.

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The company further guided that the ‘prospects for the data centre market remain robust, underpinned by strong digital trends such as rapid cloud adoption, smart technologies, big‐data analytics, and 5G deployment’.

‘Keppel DC REIT remains well‐positioned to benefit from the growth of the data centre market, supported by its established track record and enlarged portfolio of assets,’ the company stated.

‘The Manager will continue to leverage its competencies in investment, asset and capital management, and build on Keppel Group’s capabilities in project development and facilities management, to seek opportunities and strengthen its presence across key data centre hubs globally.’

3. Keppel DC Reit share price target: what’s the latest?

Following the release of its H1 report, Keppel DC Reit shares rose nearly 3% in the first 30 minutes of trading on Wednesday 22 July to a new historic high of S$2.805 per share.

IG’s market analysis show that ‘buys’ form 56% of all trades on the Keppel DC Reit counter on Wednesday. Across the week, ‘sells’ form 62% of all trades so far.

In terms of client expectations, 80% of IG client accounts with open positions in this market anticipate that the price will rise, with the remaining 20% predicting a price decline.

Meanwhile, Refinitiv data showed that the stock has received an average rating of ‘hold’ from eight brokers. Five rated it ‘hold’, two rated it a ‘buy’ and one called ‘sell’ on the stock.

The same analysts gave the stock an average 18-month share price target of S$2.511, representing a downside of 8.7% from the last traded price.

Keppel DC Reit shares are trading at S$2.74 per share as at 14:15 SGT on 22 July 2020.

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  • Create a live or demo IG Trading Account, or log in to your existing account
  • Enter <Keppel DC Reit> 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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