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

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