Daily Morning Note – 1 October 2021
PHILLIP SUMMARY
Asian stocks looked set to start October on the back foot, after their U.S. peers capped their biggest monthly selloff since March 2020 with further losses. Futures pointed lower in Japan and Australia and steadied in the U.S. in early Asia trading. China begins a week-long holiday and Hong Kong’s market is shut Friday. U.S. shares fell Thursday even after confirmation that the House passed a nine-week spending bill to avert a U.S. government shutdown. The S&P 500 closed at the lowest level since July, extending its September losses to almost 5%. Economically sensitive companies like industrials and financials were among the worst performers. Treasuries rallied with the 10-year yield closing below 1.50%. The dollar gave up some of this week’s gains. Crude oil edged higher after a tumultuous session during which China was said to order its top energy companies to secure energy supplies at all costs amid shortages, prompting the White House to reiterate its own concerns over rising prices.
BREAKING NEWS
SG
Mainboard-listed logistics management service provider Cosco Shipping International on Thursday announced the proposed disposal of a 60 per cent stake in Cosco Shipping Singapore for US$42.4 million in an interested party transaction.
Publisher and awards organiser, Audience Analytics, debuted on the Catalist board on Thursday following its fully-subscribed initial public offering (IPO) which closed on Tuesday, through which the company raised S$5.5 million. Shares of Audience Analytics opened at S$0.315, up S$0.015 or 5 per cent from its IPO share price of S$0.30. Its shares later closed flat at S$0.30.
Pharmaceutical company iX Biopharma, through its wholly-owned subsidiary, has struck an agreement with CRPCG for the licensing, supply and distribution of Wafesil, a sublingual sildenafil wafer for the treatment of male erectile dysfunction, in China. In a bourse filing on Thursday, the company said the new licensing agreement runs for an initial term of 10 years.
Building contractor Lian Beng Group said its key executives were paid more for FY2021 ended May due to the group’s overall improvement in profitability. The company attributed this improvement to better performance at its property development and other business segments.
Capitaland China Trust (CLCT) has obtained its maiden S$150 million sustainability-linked loan from UOB, its manager said on Thursday.
The Urban Redevelopment Authority (URA) has released for sale three residential sites at Lentor Hills Road (Parcels A & B) and Jalan Tembusu, it said in a statement on Thursday.
US
A federal judge on Thursday rejected Wells Fargo & Co’s bid to dismiss a lawsuit claiming it defrauded shareholders about its ability to rebound from five years of scandals over its treatment of customers. The fourth-largest US bank has operated since 2018 under consent orders from the Federal Reserve and two other US financial regulators to improve governance and oversight, with the Fed also capping Wells Fargo’s assets. Shareholders said bank officials falsely claimed in TV interviews, analyst calls and congressional testimony that the bank was mending its ways, when regulators actually viewed its progress as “deficient” and “unacceptable.”
Cloud-based call centre operator Five9 Inc said on Thursday that its merger with Zoom Video Communications Inc has been terminated by mutual agreement. The development comes a week after a US Justice Department-led committee was reviewing Zoom’s proposed US$15 billion all-stock deal to buy Five9, according to a letter filed with US regulators.
YouTube announced on Wednesday it would remove videos and some high-profile users that falsely claim approved vaccines are dangerous, as social networks seek to crack down on health misinformation around Covid-19 and other diseases.
Meesho, an Indian “social commerce” platform backed by Facebook and SoftBank Group, said on Thursday it had raised US$570 million in a funding round led by Fidelity Management & Research Company and B Capital Group.
Source: SGX Masnet, The Business Times, Bloomberg, Channel NewsAsia, Reuters, CNBC, PSR
Amazon.com Inc – Much more growth ahead
Recommendation: BUY (Initiation); TP: US$4,329.00
Last Done: US$3,285.04; Analyst: Timothy Ang
– Cloud services and advertising to spearhead secular tailwinds with expected revenue growth of 33% and 54% respectively in FY21e.
– Core e-commerce business rapidly scaling up in fulfilment and logistics to further widen its moat. Fulfilment centre square footage is expected to jump 44%.
– Initiate coverage with BUY recommendation and DCF target price (WACC 6.2%) of US$4,329.
Technical Pulse: JD Logistic Inc.
Recommended: Technical BUY; Analyst: Chua Wei Ren
JD Logistic Inc (HKEX: 2618) has broken out of the downtrend line and although prices has not made another significant high to confirm the uptrend, technical is pointing out a potential upside.
Buy limit: 30.35 Stop loss: 27.50 Take profit 1: 37.96 Take profit 2: 40.46
>>>Read more Technical reports
POEMS Podcast: Let the Money Talk
Recent Podcasts:
City Developments – SGX Company Insights Ep 27
Koufu Group – SGX Company Insights – Ep 26
UG Healthcare Corp – SGX Company Insights – Ep 25
Visit www.stocksbnb.com to learn more!
Join our Phillip Securities Research Telegram channel for the latest update on our stock coverage!
Click here to join: https://t.me/stocksbnb
Webinar Of The Week
Weekly Market Outlook: Facebook, Starhub, ComfortDelgro, APTV, Qian Hu, Technicals & SG Weekly
Date: 27 September 2021
Updates summarised in 3 minutes
Phillip Research in 3 minutes: #29 Keppel Corporation; Initiation
For more videos on Phillip in 3 Mins
| Disclaimer |
| The information contained in this email and/or its attachment(s) is provided to you for information only and is not intended to or nor will it create/induce the creation of any binding legal relations. The information or opinions provided in this email do not constitute an investment advice, an offer or solicitation to subscribe for, purchase or sell the e investment product(s) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of this information. Investments are subject to investment risks including possible loss of the principal amount invested. The value of the product and the income from them may fall as well as rise. You may wish to seek advice from an independent financial adviser before making a commitment to purchase or investing in the investment product(s) mentioned herein. In the event that you choose not to do so, you should consider whether the investment product(s) mentioned herein is suitable for you. PhillipCapital and any of its members will not, in any event, be liable to you for any direct/indirect or any other damages of any kind arising from or in connection with your reliance on any information in and/or materials attached to this email. The information and/or materials provided 揳s is?without warranty of any kind, either express or implied. In particular, no warranty regarding accuracy or fitness for a purpose is given in connection with such information and materials. |
| Confidentiality Note |
| This e-mail and its attachment(s) may contain privileged or confidential information, which is intended only for the use of the recipient(s) named above. If you have received this message in error, please notify the sender immediately and delete all copies of it. If you are not the intended recipient, you must not read, use, copy, store, disseminate and/or disclose to any person this email and any of its attachment(s). PhillipCapital and its members will not accept legal responsibility for the contents of this message. Thank you for your cooperation. |
