Daily Morning Note – 1 June 2021

PHILLIP SUMMARY

Asian stocks looked set for a weaker open Tuesday and U.S. futures slipped as traders await key American jobs data later this week to help gauge the economic outlook.

Equity contracts fell in Japan, Australia and Hong Kong. S&P 500 and Nasdaq 100 futures edged down following a U.S. holiday. The offshore yuan held a retreat after China forced banks to keep more foreign currencies in reserve for the first time in over a decade, its most substantial move yet to rein in the surging currency.


BREAKING NEWS

SG News

A subsidiary of Addvalue Technologies will supply satellite communication solutions to more than 1,000 Chinese fishing vessels, the mainboard-listed firm said on Monday. The communications technology products developer bagged a contract with CTTIC Shanghai to supply its Addvalue iFleetONE-VMS Terminal to the ships. The agreement follows an earlier contract signed with CTTIC Shanghai in August 2020 to roll out 100 units of the terminals.

Following the Malaysian government’s May 28 announcement of a two-week ban on social and economic activities in the country, CNMC Goldmine Holdings on Monday announced it will temporarily cease all on-site operations in Kelantan. During the first phase of the nation-wide lockdown from June 1 to 14, CNMC intends to seek clarification with the relevant authorities on whether its operations are considered “essential”, as only activities deemed as such by the National Security Council will be allowed during this period.

Moya Holdings Asia on Monday said its subsidiary, Air Semarang Barat, on May 22 successfully achieved the commercial operation date (COD) of its build, operate and transfer project for a water treatment supply system in West Semarang, Indonesia. The project has a 25-year concession period after the COD, with a water treatment capacity of up to 1,000 litres per second. Its COD is in line with initial targets and comes despite the current Covid-19 pandemic situation, said the water treatment company in a regulatory filing on Monday.

The chief executive officer of mainboard-listed Dutech Holdings, through TSI Metals HK Limited, has proposed to acquire all 356.54 million issued and paid-up ordinary shares of Dutech for 40 cents per share in cash, with a view to delist the firm from the Singapore Exchange (SGX). TSI Metals, an investment holding company, has an issued share capital of HK$50,000 (S$8,516) solely held by Dutech’s CEO, executive chairman and director, Johnny Liu.

US News

Key South-east Asian economies are tipped to see a rebound on export strength in 2021, fuelled by demand from major trading partners China and the United States. Based on high exposure to both markets, Vietnam will lead the trade recovery, followed by Malaysia. Regional trade hub Singapore will also benefit from its “outsized external sector”, economist Jung Sung Eun said in a report on Monday.

Apple will add to its global retail presence even as stores in inner cities struggle with an accelerating shift to sales online during the coronavirus pandemic, Germany’s Funke Mediengruppe reported. The Cupertino, California-based company operates about 500 Apple stores globally, including 100 in Europe.

Intel Corp’s CEO said on Monday it could take several years for a global shortage of semiconductors to be resolved, a problem that has shuttered some auto production lines and is also being felt in other areas, including consumer electronics. Pat Gelsinger told a virtual session of the Computex trade show in Taipei that the work-and-study-from-home trend during the Covid-19 pandemic had led to a “cycle of explosive growth in semiconductors” that has placed huge strain on global supply chains.

Boeing Co. has halted deliveries of its 787 Dreamliners, adding fresh delays for customers following a recent five-month suspension in handing over the aircraft due to production problems, people familiar with the matter said. Federal air-safety regulators have requested more information about Boeing’s proposed solution to address the previously identified quality lapses.


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

TECHNICAL PULSE

Financial Select Sector SPDR Fund

Analyst: Chua Wei Ren

Recommended Action: Technical BUY

Financial Select Sector SPDR Fund (US: XLF) Strong upside is set to continue based on the recent technical

Buy limit: 37.90 Stop loss: 36.20 Take profit 1: 41.34 Take profit 2: 43.87

Equinox Gold Corp

Analyst: Chua Wei Ren

Recommended Action: Technical BUY

Equinox Gold Corp (US: EQX) is heading for a break above despite the overall trend is in a bearish downside as recent technical flags out reversal indications

Buy stop: 9.38 Stop loss: 8.91 Take profit 1: 10.26 Take profit 2: 11.00

>> Read more technical reports

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