DAILY MORNING NOTE | 10 August 2023

US stocks closed lower on Wednesday, the day after a report showed Americans borrowed more than ever on their credit cards in the last quarter, and a day ahead of US Consumer Price Index (CPI) inflation data that could influence Federal Reserve interest rate decisions. The Dow Jones Industrial Average fell 191.13 points, or 0.54 per cent, to 35,123.36, the S&P 500 lost 31.67 points, or 0.70 per cent, to 4,467.71 and the Nasdaq Composite dropped 165.93 points, or 1.2 per cent, to 13,718.40.a

Top gainers & losers

Factsheets


EVENTS OF THE WEEK

Factsheets


SG

Thai Beverage Public Co (ThaiBev) saw its earnings before interest, taxes, depreciation, and amortisation (Ebitda) fall 3.4 per cent to 37.8 billion Thai baht (S$1.45 billion) for the nine months ended Jun 30, 2023, from 39.1 billion baht in the previous corresponding period. This is despite the food and beverage company having recorded a 3.8 per cent rise in sales revenue to 215.9 billion baht, from 207.9 billion baht in the year-before period. The group’s Ebitda performance takes into account the improvement in revenue, higher brand investment and cost pressures, it said in a business update on Wednesday (Aug 9) night.

Penguin International posted a 28.5 per cent drop in net profit to S$6.1 million for its first half ended Jun 30, 2023, from S$8.5 million in the previous corresponding period. This was due to net foreign exchange losses of S$1.4 million recorded during the period, compared to the net foreign exchange gain of S$1.2 million in the year-earlier period, as well as higher marine insurance costs arising from more vessels being added to the group’s operating fleet, said the shipbuilder in a bourse filing on Wednesday (Aug 9). Earnings per share stood at 1.10 Singapore cents for the half year, down from 3.11 cents in the previous year. Revenue for the first half grew 44.9 per cent to S$89 million, from S$61.4 million a year earlier. The company attributed this mainly to an increase in the number of build-for-stock vessels sold and an increase in chartering activities over the period.

DBS Group Holdings, South-east Asia’s largest bank, will increase investment and hiring in China’s Greater Bay Area as it expects growth in the region to outpace the rest of the country, according to the lender’s head of North Asia. The Singapore-based bank has been keen to expand in Greater China. Earlier this year it signalled its interest to raise its 13 per cent holdings in Shenzhen Rural Commercial Bank in China. The bank will also complete its acquisition of Citigroup’s consumer banking business in Taiwan this month. The diversification comes as the lender seeks more growth in places outside its home market. Hong Kong is DBS’s second-largest revenue generator after Singapore, and contributed to about 16 per cent of its total income in the first half. Despite recent headwinds in China’s economy, Sebastian Paredes, who is also the chief executive officer of DBS Bank in Hong Kong said the expected 5 per cent and 4.5 per cent growth in China’s economy this year and next provides almost US$1 trillion of incremental growth. He pointed to electric vehicles and batteries, and semiconductors as opportunities in the country.


US

General Motors is still struggling to ramp up production of electric vehicles, a top executive said on Wednesday (Aug 9). Speaking at a JP Morgan investor conference, GM chief financial officer Paul Jacobson said the automaker’s electric vehicles, from Cadillac Lyriq SUVs to BrightDrop vans, had been affected by an issue with assembling battery modules – a stumbling block first noted last week by chief executive Mary Barra. Jacobson said GM had built more than 1,000 Lyriqs in July – still well below the company’s initial expectations. GM in early 2022 said it expected to build 25,000 Lyriqs at the company’s Spring Hill, Tennessee, plant last year, but fell far short of that target. In the first six months this year, GM delivered fewer than 2,400 Lyriqs to customers, as it struggled with batteries and other issues. Jacobson pointed to its majority-owned Cruise automated vehicle operation as a bright spot, as the unit enters a “big phase of operational expansion,” with more than 400 vehicles on the road.

The dollar eased on Wednesday (Aug 9) after data showed the Chinese economy slipped into deflation last month, which upped the chances for the government to roll out extra stimulus measures and nudged investors into risk assets. Dollar selling by state-owned Chinese banks helped the yuan rally from a one-month low, dealers said. The Chinese central bank’s stronger-than-expected exchange-rate fixing at 7.1588 per dollar before the open signalled its discomfort with the yuan’s recent declines. The dollar index – which measures the performance of the US currency against six others, – eased 0.1 per cent, paring some of Tuesday’s 0.47 per cent rise.

Oil hits new peaks on Wednesday (Aug 9) with Brent Crude touching the highest price since April, as tighter supply owing to Saudi and Russian output cuts offset concerns over slow demand from China and a report showing rising US crude inventories. Top exporter Saudi Arabia last week extended its voluntary production cut of 1 million barrels per day for another month to include September, and Russia said it would cut oil exports by 300,000 bpd in September. Brent Crude was up US$1.00, or 1.2 per cent, at US$87.17 by 1110 GMT, having touched US$87.24, the highest price since April 13. US West Texas Intermediate (WTI) crude gained 80 cents, or 1.0 per cent, to US$83.72. The US benchmark touched US$84.11, the highest price since November 2022. Crude posted its sixth consecutive weekly gain last week, helped by a reduction in Opec+ supplies and hopes of stimulus boosting oil demand recovery in China.

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


RESEARCH REPORTS

PSR Stocks Coverage

Factsheets

Factsheets


For more information, please visit:

https://www.stocksbnb.com/singapore-stocks-coverage/


Upcoming Webinars

Guest Presentation by Audience Analytics

Date: 10 Aug 2023

Time: 12pm – 1pm

Register: https://tinyurl.com/jz5w76fa


Guest Presentation by Paragon REIT

Date: 10 Aug 2023

Time: 3pm – 4pm

Register: https://tinyurl.com/3sx2tnp9


Guest Presentation by Prime US REIT

Date: 17 Aug 2023

Time: 12pm – 1pm

Register: https://tinyurl.com/bdd9wp2a


Guest Presentation by Singtel [NEW]

Date: 21 Aug 2023

Time: 3pm – 4pm

Register: https://tinyurl.com/43kj52mf


Guest Presentation by LMS Compliance [NEW]

Date: 22 Aug 2023

Time: 12pm – 1pm

Register: https://tinyurl.com/m74bbczz


Guest Presentation by Netlink NBN Trust

Date: 24 Aug 2023

Time: 12pm – 1pm

Register: https://tinyurl.com/2hpm7puv


Guest Presentation by Uni-Asia Group Limited

Date: 30 Aug 2023

Time: 12pm – 1pm

Register: https://tinyurl.com/y5nhcvzn


Guest Presentation by Elite Commercial REIT

Date: 8 Sept 2023

Time: 7pm – 8pm

Register: https://tinyurl.com/544xs5v6


Guest Presentation by TDCX

Date: 13 Sept 2023

Time: 12pm – 1pm

Register: https://tinyurl.com/4xwwexvx


Guest Presentation by ComfortDelGro Corporation Limited

Date: 20 Sept 2023

Time: 12pm – 1pm

Register: https://tinyurl.com/mr27xw2r


POEMS Podcast:

Research Videos

Weekly Market Outlook: PayPal, Meta, Apple, AMD, DBS, Starhub, Tech Analysis, SG Weekly & More!
Date: 7 August 2023
Click here for more on Market Outlook.
Sign up for our webinars here, and be among the first to receive economy and market updates.

PHILLIP RESEARCH IN 3 MINS

Phillip Research in 3 minutes: #29 Keppel Corporation; Initiation
Click here for more on Phillip in 3 mins.

Follow our Socials

Facebook Social Icon Instagram Icon Twitter Social Icon Youtube Social Icon Linkedin Social Icon TikTok Social Icon Spotify Social Icon

Join our Singapore Equity Research Community on POEMS Mobile 3 App for the latest research reports, market updates, insights and more

Click to join!

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.

Contact us to Open an Account

Need Assistance? Share your Details and we’ll get back to you

IMPORTANT INFORMATION

This material is provided by Phillip Capital Management (S) Ltd (“PCM”) for general information only and does not constitute a recommendation, an offer to sell, or a solicitation of any offer to invest in any of the exchange-traded fund (“ETF”) or the unit trust (“Products”) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. You should read the Prospectus and the accompanying Product Highlights Sheet (“PHS”) for key features, key risks and other important information of the Products and obtain advice from a financial adviser (“FA“) pursuant to a separate engagement before making a commitment to invest in the Products. In the event that you choose not to obtain advice from a FA, you should assess whether the Products are suitable for you before proceeding to invest. A copy of the Prospectus and PHS are available from PCM, any of its Participating Dealers (“PDs“) for the ETF, or any of its authorised distributors for the unit trust managed by PCM.  

An ETF is not like a typical unit trust as the units of the ETF (the “Units“) are to be listed and traded like any share on the Singapore Exchange Securities Trading Limited (“SGX-ST”). Listing on the SGX-ST does not guarantee a liquid market for the Units which may be traded at prices above or below its NAV or may be suspended or delisted. Investors may buy or sell the Units on SGX-ST when it is listed. Investors cannot create or redeem Units directly with PCM and have no rights to request PCM to redeem or purchase their Units. Creation and redemption of Units are through PDs if investors are clients of the PDs, who have no obligation to agree to create or redeem Units on behalf of any investor and may impose terms and conditions in connection with such creation or redemption orders. Please refer to the Prospectus of the ETF for more details.  

Investments are subject to investment risks including the possible loss of the principal amount invested. The purchase of a unit in a fund is not the same as placing your money on deposit with a bank or deposit-taking company. There is no guarantee as to the amount of capital invested or return received. The value of the units and the income accruing to the units may fall or rise. Past performance is not necessarily indicative of the future or likely performance of the Products. There can be no assurance that investment objectives will be achieved.  

Where applicable, fund(s) may invest in financial derivatives and/or participate in securities lending and repurchase transactions for the purpose of hedging and/or efficient portfolio management, subject to the relevant regulatory requirements. PCM reserves the discretion to determine if currency exposure should be hedged actively, passively or not at all, in the best interest of the Products.  

The regular dividend distributions, out of either income and/or capital, are not guaranteed and subject to PCM’s discretion. Past payout yields and payments do not represent future payout yields and payments. Such dividend distributions will reduce the available capital for reinvestment and may result in an immediate decrease in the net asset value (“NAV”) of the Products. Please refer to <www.phillipfunds.com> for more information in relation to the dividend distributions.  

The information provided herein may be obtained or compiled from public and/or third party sources that PCM has no reason to believe are unreliable. Any opinion or view herein is an expression of belief of the individual author or the indicated source (as applicable) only. PCM makes no representation or warranty that such information is accurate, complete, verified or should be relied upon as such. The information does not constitute, and should not be used as a substitute for tax, legal or investment advice.  

The information herein are not for any person in any jurisdiction or country where such distribution or availability for use would contravene any applicable law or regulation or would subject PCM to any registration or licensing requirement in such jurisdiction or country. The Products is not offered to U.S. Persons. PhillipCapital Group of Companies, including PCM, their affiliates and/or their officers, directors and/or employees may own or have positions in the Products. Any member of the PhillipCapital Group of Companies may have acted upon or used the information, analyses and opinions herein before they have been published. 

This advertisement has not been reviewed by the Monetary Authority of Singapore.  

 

Phillip Capital Management (S) Ltd (Co. Reg. No. 199905233W)  
250 North Bridge Road #06-00, Raffles City Tower ,Singapore 179101 
Tel: (65) 6230 8133 Fax: (65) 65383066 www.phillipfunds.com