Daily Morning Note – 10 June 2021
PHILLIP SUMMARY
Asian stocks look set for a steady start Thursday after Treasuries rallied and U.S. equities edged lower ahead of an American inflation report that may provide clues on the direction of monetary policy. Futures were little change in Japan, Australia and Hong Kong. The S&P 500 again flirted with a record before slipping, continuing a pattern of range-bound trading also evident at a global level. U.S. equity contracts inched up. The 10-year Treasury yield fell below 1.5% for the first time in a month, helped by a strong auction. The U.S. long bond rate dropped to a level unseen since March. That signals support for the view that the rebound from the pandemic will stoke only a transient bout of elevated inflation. The dollar was steady.
BREAKING NEWS
SG News
CES Grosvenor (SA), a wholly-owned unit of Chip Eng Seng Corporation, has entered into an agreement to acquire a two-storey commercial building in Adelaide, Australia, for A$2.5 million (S$2.56 million). Located at 80-82 Hindley Street, the property is situated on a freehold site and has a land size of about 287 square metres, Chip Eng Seng said in a Wednesday bourse filing. The deal is expected to be completed on July 1.
Malaysia’s Top Glove posted a net profit of RM2.04 billion (S$654.7 million) for the third quarter ended May 31, 2021, almost six times the net profit of RM347.9 million the previous year, though it saw easing quarter on quarter. At a briefing following the announcement of its results, the company also said it would delay its Hong Kong IPO for a few months following the US ban on its gloves over issues of forced labour.
Sheng Siong Group on Wednesday said its subsidiary has entered into a lease agreement for its third store in Kunming, China. The supermarket operator expects the new store to be operational before the end of the third quarter of this year, it said in a bourse filing. The retail space spans about 37,800 square feet and is located at 1F Unit 101, Chun Cheng Hui Gu Phase 2 Commercial Building, Haiyuan District, Heilinpu Wuhua District Residential Office, Kunming, China.
PEG East, a unit of Goodland Group, has entered an agreement to acquire a row of four freehold double-storey shophouses on Serangoon Road for S$16 million, the mainboard-listed property developer announced on Wednesday. The properties are 1375, 1377, 1379 and 1381 Serangoon Road, which Goodland described as “conveniently located at the city fringe” and easily accessible via major roads, expressways, MRT stations and shopping malls.
US News
GameStop’s sales rose 25% in the fiscal first quarter, as the video game retailer embarks on a turnaround strategy partially fueled by a Reddit-inspired stock rally. The company also named former Amazon executive Matt Furlong as its new CEO. Shares fell more than 12% in extended trading on Wednesday, after the company declined to provide an outlook for the year and said it may sell as many as 5 million shares.
Shares of the high-end furniture retailer RH surged in extended trading Wednesday after the company beat analysts’ profit and sales estimates for the fiscal first quarter. RH also hiked its full-year outlook, building on the momentum it’s seeing in the luxury home category, and gave a stronger-than-expected sales forecast for the second quarter.
United Parcel Service Inc shares fell as much as 6% on Wednesday as the company known for delivering everything from Amazon.com packages to coronavirus vaccines forecast disappointing post-pandemic U.S. margins. That came as analysts pressed executives on how UPS will maintain momentum as demand moderates, pandemic surcharges roll off, and competitors – including its No. 1 customer, Amazon.com Inc – rise.
Source: SGX Masnet, The Business Times, Bloomberg, Channel NewsAsia, Reuters, CNBC, PSR
HK Reports – Read up on our Hong Kong reports here
Webinar Of The Week
Market Outlook: LHN Ltd, Valuetronics Holdings, MM2 Asia, Cromwell European REIT, KORE, KSH
Date: 07 June 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. |
