DAILY MORNING NOTE | 10 January 2024

Trade of the Day

Intel Corp (NASDAQ: INTC)

Analyst: Zane Aw

(Current Price: US$48.45) – TECHNICAL BUY
Buy price: US$48.45 Stop loss: US$46.60 (-3.82%)
Take profit: US$52.40 (+8.15%)

Factsheets


Singapore Airlines (SGX: C6L)

Analyst: Zane Aw

(Current Price: S$6.39) – TECHNICAL SELL
Sell stop: S$6.35 Stop loss: S$6.43 (-1.26%)
Take profit 1: S$6.00 (+5.51%) Take profit 2: S$5.78 (+8.98%)

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Trades Initiated in the past week

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Singapore shares ended higher on Tuesday (Jan 9), taking the cue from Wall Street’s tech-led overnight gains and speculation of more stimulus from China. It rose 10.94 points or 0.3 per cent to 3,197.96. Most key gauges in the region except for South Korea advanced as traders regained some confidence ahead of Thursday’s release of the US Consumer Price Index (CPI). China is also set to publish December CPI figures on Friday amid speculation that its central bank will cut lending rates soon to spur economic growth. Across the broader market, turnover in the local bourse came in at 1.05 billion securities worth S$798.8 million. Gainers outnumbered losers 281 to 254.

Wall Street stocks mostly slipped on Tuesday following a downcast World Bank forecast and US trade data that suggested slower economic growth. The World Bank projected global growth would slow to 2.4 per cent in 2024 from the estimated 2.6 per cent last year, due in part to weaker activity in the United States and China. Meanwhile, US trade data from November showed drops in both imports and exports, reflecting a weakening economic outlook. The Dow Jones Industrial Average ended down 0.4 per cent at 37,525.16. The broad-based S&P 500 shed 0.2 per cent to 4,756.50, while the tech-rich Nasdaq Composite Index edged up 0.1 per cent to 14,857.71.

Top gainers & losers

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Events Of The Week

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SG

The Ascott, CapitaLand Investment’s (CLI) lodging business unit, and CapitaLand Wellness Fund have jointly acquired a freehold hotel with each holding a 50 per cent stake in the property. While CLI did not disclose the hotel name and consideration price on Tuesday (Jan 9), Mingtiandi, a property information portal, reported on Sunday (Jan 7) that Hong Kong-based private equity firm Gaw Capital Partners has completed the sale of the Hotel G, a 308-unit budget hotel at the Bugis area, to CLI’s lodging unit at just under S$240 million. CLI noted that the property will be upgraded and rebranded as lyf Bugis Singapore in mid-2024 under Ascott’s co-living brand lyf. It will remain operational throughout the renovation period. The acquisition of lyf Bugis Singapore will expand the brand’s presence in Singapore to a total of four properties, in addition to lyf one-north Singapore, lyf Funan Singapore and lyf Farrer Park Singapore, said CLI.

Keppel’s Infrastructure Division has signed a multi-year power purchase agreement with semiconductor manufacturer GlobalFoundries to provide electricity at the latter’s Singapore site. Under the agreement, Keppel will provide 150 to 180 megawatts of electricity each year to power GlobalFoundries’ Singapore operations. This comes as the manufacturer’s Singapore site ramps up production, following the opening of its US$4 billion expanded fabrication plant here in September 2023. GlobalFoundries is expected to be a “significant long-term off-taker of electricity” from the upcoming Keppel Sakra Cogeneration Plant (KSC), both companies said in a joint statement on Tuesday (Jan 9). The semiconductor manufacturer is expected to contract about 25 per cent of KSC’s total generation capacity for more than 15 years, when the plant is operational in 2026. By purchasing electricity from KSC, it is believed that GlobalFoundries will be able to reduce emissions from its Singapore site by more than 10 per cent – or up to 70,000 tonnes – of carbon dioxide emissions per annum, as compared to the status quo.

Semiconductor company Silicon Box has raised US$200 million in a Series B round, bringing its valuation to over US$1 billion less than three years after its founding, the startup said on Monday (Jan 8). Investors in the round included UK-based asset manager Praesidium Capital, US hedge fund Maverick Capital and growth investor BRV Capital. Silicon Box’s three founders participated in the round, as did India’s Tata Electronics and the venture arms of Taiwanese semiconductor group UMC, Japanese electronics group TDK and US semiconductor company Lam Research. Silicon Box was founded in 2021 by the founders of Nasdaq-listed chipmaker Marvell, husband-wife duo Sehat Sutardja and Weili Dai, along with current chief executive Han Byung Joon.

A single floor of strata office space at 15 Scotts Road has been put up for sale by Top Global with an indicative price of S$76 million. This translates to around S$3,419 per square foot (psf) in strata area, said exclusive marketing agent Cushman & Wakefield (C&W) on Tuesday (Jan 9). The second-floor space is currently approved for childcare use and leased to a childcare operator. Formerly known as Thong Teck Building, 15 Scotts Road is a freehold nine-storey commercial building with retail space on the ground floor and eight floors of office space. The second-floor space up for sale has a total strata area of 22,227 square feet (sq ft) that includes an open courtyard and sky terrace, and would provide ownership of more than 20 per cent of the share value of the property, said C&W.


US

Samsung Electronics reported a likely 35 per cent drop in fourth-quarter operating profit on Tuesday (Jan 9), much worse than analysts expected as weak consumer demand persisted in many of its businesses even as memory chip prices improved. The world’s largest memory chip, smartphone and TV maker estimated in its preliminary results that its operating profit fell to 2.8 trillion won (S$2.8 billion) in October to December from 4.31 trillion won a year earlier. The profit missed a 3.7 trillion won LSEG SmartEstimate, weighted towards forecasts from analysts who are more consistently accurate. Lower-than-expected profit from its chip contract manufacturing, mobile processors, television and home appliance businesses may have caused Samsung to fall short of forecasts, analysts said.

Hyundai Motor Group aims to begin initial test flights of its electric air taxi by the end of the year as the world’s third-largest carmaker joins the race to develop the next generation of transport. The South Korean company will apply for certification of the vehicle in the United States by the middle of 2024 with the goal of starting technology demonstrator flights by the end of the year, according to Shin Jaiwon, chief executive officer of Supernal, the Hyundai unit developing the craft. The company plans to launch a formal service in 2028 after meeting testing requirements to ensure it is ready for the public. The executive detailed the timeline as the company unveiled a product concept of the electric vertical take-off and landing aircraft at the CES technology conference in Las Vegas. Hyundai is racing to catch up with rivals in the nascent, though increasingly crowded, field of eVTOLs, as the vehicles are called. The flying taxi will be a hybrid between a helicopter and a fixed-wing plane, while some competing models rely primarily on rotors. The battery-powered S-A2 will be quiet, efficient and zero-emission, the company said.

Blackrock will dismiss about 600 employees, or roughly 3 per cent of its global workforce, as it seeks to reallocate resources amid rapid changes in asset management. “We see our industry changing faster than at any time since the founding of BlackRock,” chief executive officer Larry Fink and president Rob Kapito wrote on Tuesday (Jan 9) in a memo to staff. The executives said that exchange-traded funds (ETFs) have become the preferred vehicle for both index- and active-investment strategies, and that the firm is growing across the globe – including in Europe and Asia. “And, perhaps most profound, new technologies are poised to transform our industry – and every other industry,” Fink and Kapito said in the memo. The world’s largest asset manager said it still expects to have a larger staff by the end of the year, even with the cuts, as it expands certain parts of the business.

The price of bitcoin fell in late afternoon trading Tuesday following a false social media post from the X account of the Securities and Exchange Commission that stated the agency had approved bitcoin exchange-traded funds for trading. The SEC later deleted the post and said its account on X was compromised and it had not approved the ETFs. Bitcoin initially jumped as high as $47,901, its highest level since March 2022, according to Coin Metrics, before dropping back down. It was last trading lower by 3% at $45,575.60.

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


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