Daily Morning Note – 10 November 2021
PHILLIP SUMMARY
Asian stocks are set for a mixed start Wednesday after U.S. shares snapped their longest winning streak since 2017. Treasuries rallied, with some traders citing an unwinding of bearish bond bets. Futures for Japan were steady and those for Hong Kong fell. Australia opened little changed, while U.S. futures slipped. The S&P 500 dipped for the first time in nine sessions, hurt by financial shares amid a slump in the 10-year U.S. Treasury yield. The Nasdaq 100 underperformed, in part on Tesla Inc.’s loss of $199 billion in value on a host of negative news. A global bond rally saw the 30-year U.S. Treasury yield at one point reach the lowest since July, narrowing the yield gap between shorter and longer maturity bonds. Aside from the short-squeeze, speculation about a possible dovish shift in the leadership of the Federal Reserve also boosted Treasuries. The dollar edged down.
BREAKING NEWS
SG
Keppel Corp has upped its privatisation offer for Singapore Press Holdings (SPH) with a “compelling” final offer of S$2.351 per share, which includes additional cash of S$0.20 per share. This comes after Cuscaden Peak – a consortium backed by Hotel Properties (HPL), businessman Ong Beng Seng, and two Temasek-linked entities, CLA Real Estate Holdings and Mapletree – made a counter bid for SPH in late October at S$2.10 per share in cash; or slightly higher than Keppel’s original offer of S$2.099 per share.
Far East Orchard has reported that its net loss for the nine months ended Sep 30 has widened to S$12.6 million from S$6.3 million a year ago. Revenue slid by 10.2 per cent year on year to S$75.4 million as the pandemic continued to weigh on its hospitality business, in particular in Australia.
Record high ocean freight rates and higher commodity costs have eaten into the profits of instant food and beverage manufacturer Food Empire, despite registering higher revenue for the third quarter ended September. Despite an 8.8 per cent increase in revenue to US$76.4 million, the group’s net profit after tax fell 50.6 per cent to US$3.1 million in Q3, from US$6.3 million in the year-ago period.
Glove-maker Riverstone Holdings chalked up a near 50 per cent jump year-on-year in net profit to RM266.4 million (S$86.4 million) for the third quarter ended Sep 30, 2021. Revenue rose about 35 per cent to RM652.8 million, on the back of demand for its healthcare examination gloves amid the pandemic as well as for its high-tech cleanroom gloves from firms in the electronics and semiconductor industries. Still, market prices have started to normalise as major distributors adopt a wait-and-see stance, Riverstone flagged.
The manager of EC World Real Estate Investment Trust (Reit) has announced distribution per unit (DPU) of 1.662 Singapore cents for the third quarter ended September, up 19.7 per cent from a DPU of 1.388 cents in the year-ago period. The gross revenue of the China-focused e-commerce logistics landlord grew 10.9 per cent to S$31.6 million in Q3, from S$28.5 million a year ago.
Construction firm Hock Lian Seng Holdings has snagged a S$320 million contract from the Land Transport Authority, it said in a filing to the Singapore Exchange on Tuesday (Nov 9). The contract, won by its wholly-owned subsidiary Hock Lian Seng Infrastructure, is for the design and construction of the Aviation Park MRT station and tunnels. Work on the project in Changi, a stop on the Cross Island Line, starts immediately.
The net profit of Genting Singapore grew 11 per cent to S$60.7 million for the third quarter ended September, from S$54.4 million in the corresponding period a year ago. However, this was mainly due to a write-back of accounting accruals of S$45.9 million made in prior periods, in relation to its Yokohama integrated resorts (IR) bid.
Mainboard-listed SingHaiyi Group has received a voluntary conditional cash offer from an investment holding company owned by Gordon Tang and his wife Celine Tang for all the issued ordinary shares in the company for S$0.117 per offer share in cash, with a view to delist. This represents a 21.8 per cent discount to the company’s net asset value (NAV) per share of S$0.1496 as at end-September, 2021.
Catalist-listed Hyphens Pharma will acquire Novem Healthcare, Novem Pharma and Novem Sciences (Novem companies) for S$16.3 million to augment its current healthcare products and services.
US
Multinational conglomerate General Electric announced on Tuesday it will split into three separate, publicly-traded companies in the latest move by the industrial giant to shore up its fortunes. GE will spin off its healthcare and energy businesses, and the remaining core of the century-old company founded by Thomas Edison will focus on aviation.
Netflix is rolling out a TikTok-like feature aimed at kids, its latest bid to attract younger viewers to its platform and help them discover programming. The “Kids Clips” feature, appearing on Netflix’s iOS app, will show short videos from the company’s existing library of children’s programmes and movies. Netflix plans to add new clips daily based on its current and future offerings.
Robinhood on Monday warned users that a hacker talked their way past the stock-trading app’s defences, stealing millions of user email addresses and more. The culprit called customer support and, pretending to be an authorised party, duped a Robinhood employee into providing access to the customer support computer system, a hacker technique referred to as “social engineering,” the company said in a blog post.
Source: SGX Masnet, The Business Times, Bloomberg, Channel NewsAsia, Reuters, CNBC, PSR
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