Daily Morning Note – 10 December 2021
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Dear Valued Investors, Please note that our last Morning Note for 2021 will be on 13 December 2021.
US stocks took a breather from this week’s stretch of gains on Thursday, with two of the three main indices closing with solid losses and the Dow ending flat. The declines ended a three-day rally that took Wall Street back near record territory, amid positive data on the jobs markets but a day before a key inflation report. The Dow Jones Industrial Average ended at 35,754.69, less than a point below Wednesday’s close. The broad-based S&P 500 lost 0.7 per cent to finish at 4,667.45, while the tech-rich Nasdaq Composite Index was the biggest loser, dropping 1.7 per cent to 15,517.37.
Hiap Seng Engineering which has been under judicial management since late last year may have found a white knight, the judicial managers said in a bourse filing on Thursday (Dec 9). The company could get a cash injection of S$16 million from investors led by an associate of Mainboard-listed logistics player Vibrant Group, as part of a debt restructuring under the non-binding term sheet inked earlier on Thursday. The deal with the investors is dependent on unsecured creditors approving a debt-for-equity swap in a scheme of arrangement.
Power plant operator owned by coal shipper Manhattan Resources is selling 2 plots of land in East Kalimantan for close to 271.3 billion rupiahs in an interested person transaction, the board disclosed after a conditional land sale and purchase agreement on Thursday (Dec 9). Manhattan Resources’ 86.1 per cent-owned Kariangau Power subsidiary plans to sell the land, which has a combined size of more than 271,270 square metres, to a company linked to controlling shareholder Low Tuck Kwong and his family.
Shareholders of Keppel Corporation have voted in favour of the proposal to acquire Singapore Press Holdings (SPH) Its final offer for SPH is S$2.351 per share, consisting of S$0.868 per share in cash, 0.596 of a Keppel Reit unit and 0.782 of an SPH Reit unit. In an extraordinary general meeting (EGM) held on Dec 9, some 98.2 per cent of shareholder votes signalled their approval for the acquisition of SPH, while 1.8 per cent voted against it.
Gold prices were flat on Thursday (Dec 9), as the US dollar and Treasury yields firmed ahead of key inflation data that could provide clues on the Federal Reserve’s next policy move. Spot gold was flat at US$1,782.65 per ounce, as of 2.36 am GMT. US gold futures fell 0.1 per cent to US$1,784.50. Benchmark 10-year Treasury yields were hovering close to their highest level since Nov 29 scaled on Wednesday (Dec 8).
Oil prices settled lower on Thursday on fears about the economic outlook in the world’s biggest oil importer following rating downgrades to two Chinese property developers, and after some governments took measures to fight the Omicron variant of the coronavirus. Brent crude futures settled down US$1.40, or 1.9 per cent, to US$74.42 a barrel, backing off a session high of US$76.70. US West Texas Intermediate (WTI) crude futures were down US$1.42, or 2 per cent, at US$70.94 after hitting a peak of US$73.34.
New filings for US unemployment aid dropped sharply last week, bringing them to levels not seen since 1969 for the second time this year, the government said on Thursday (Dec 9). The Labor Department said 184,000 new seasonally adjusted claims for jobless aid were made last week – much less than expected, and 43,000 less than the previous week’s level. That brought the closely watched metric of lay-offs in the world’s largest economy to a level not seen since the week of Sep 6, 1969, the second time in 3 weeks it has hit a low from that year.
Source: SGX Masnet, The Business Times, Bloomberg, Channel NewsAsia, Reuters, CNBC, PSR
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