Daily Morning Note – 11 April 2022
Singapore stocks bucked the regional trend and ended a tough week lower on Friday (Apr 8), as the aggressive outlook for the Fed’s monetary policy remained the key theme overnight. The benchmark Straits Times Index (STI) fell 0.6 per cent or 20.95 points to 3,383.28. Major indexes in Hong Kong, Japan, South Korea and Australia closed between 0.2 and 0.5 per cent higher. Among STI constituents, ST Engineering was the biggest gainer, closing 1.2 per cent or S$0.05 higher at S$4.10. Trailing behind was Keppel Corporation, which closed up 1.1 per cent or S$0.07 at S$6.58.
The Dow rose and the S&P 500 ended lower in choppy trade on Friday (Apr 8), as beaten-down bank shares gained and investors grappled with how best to deal with an economy that could skid as the Federal Reserve moves to aggressively tackle inflation. The yield on the benchmark 10-year US Treasury note hit a 3-year high of 2.73 per cent, helping boost the S&P banking index , which rose 1.2 per cent, after slumping to 13-month lows on Thursday. The index is down 10.8 per cent year to date. For the week, the S&P fell 1.2 per cent, the Dow lost 0.3 per cent and the Nasdaq shed 3.8 per cent, as the index was hit after Fed officials raised concerns about rapid rate hikes causing a slowdown.
SG
2021 was a year when Covid-19 surged anew in Singapore and globally, but clients of DBS Private Bank barely skipped a beat. Assets under management (AUM) in DBS Private Bank rose by 12.7 per cent in 2021, compared to 7 per cent in 2020. Net new monies jumped by nearly 40 per cent, buoyed by robust growth in key business areas, including in-house managed products and family office advisory. Growth was achieved on multiple fronts. Family office advisory, for example, facilitated the establishment of three times the number of family offices year on year. Family office AUM rose 115 per cent. In-house managed products, which include discretionary portfolios; DBS Barbell Income Fund; the DBS IDEA (innovators, disruptors, enablers, and adapters) Fund; and the ESG Focus Note, saw assets more than double to S$10 billion.
Keppel DC Reit may be headed for more equity fund-raising, as the data centre investor looks to pick up more assets after an active acquisition spree in the past year. Since the initial public offering in 2014, Keppel DC Reit has grown its portfolio from 8 data centres to 21, with assets under management worth S$3.5 billion. Recent deals include data centres in the Dutch city of Eindhoven and London’s Bracknell district, as well as expansion into China with a Guangdong asset. But the most chatter emerged from a deal involving S$580 million in mobile, fixed and fibre assets at M1, which is owned by parent Keppel Corp. Unitholders voted in December to invest in S$89.7 million of bonds and preference shares from the Keppel DC Reit-M1 entity holding those assets. The Reit’s leverage was 34.6 per cent as at end-2021, with S$481.5 million of undrawn credit facilities. Meanwhile, the proceeds from a S$204.3 million private placement – meant to fund the Guangdong and future acquisitions, and to repay debt – have been fully utilised.
Hotel Properties Ltd (HPL) has sold its entire interest in HPL (Olympia) Ltd (HOL) and Maple Olympia Propco 4. The £40.8 million (S$72 million) cash sale to an unrelated party will reap a gain of S$29 million but the group’s net tangible assets will not be affected for the year ended December 2021. The transaction was made via HPL Olympia Pte Ltd (HOPL), which owns HPL (Olympia) and Maple. HOPL is in turn 80 per cent owned by the group’s fully-owned HPL Properties (West) Pte Ltd. Maple owns the 405-room Hilton London Olympia while HOL rents and operates the hotel. HPL substantial shareholder and managing director Ong Beng Seng has a 20 per cent deemed interest in HOPL through Como Holdings. HPL shares ended Friday at S$3.57 on a cum dividend basis, up 0.3 per cent or S$0.01.
US
Jack Dorsey’s Block Inc and crypto firm Blockstream Corp are working together to build a Bitcoin mining farm with Tesla’s solar-powered battery in Texas. The mining farm will tap into Tesla’s energy storage technology with rechargeable large-scale batteries at the site, Adam Back, chief executive of Blockstream, said at the Bitcoin Conference 2022 in Miami. Back did not specify the location. The venture is the latest manifestation of the aligning interests of Tesla chief executive Elon Musk and Twitter co-founder Dorsey, including over the energy usage of Bitcoin. Earlier this week, Dorsey said he was happy that Musk joined the board of directors of Twitter after Musk revealed his sizeable stake in the social media giant. Musk expressed his interest in Bitcoin and Dogecoin early last year and allowed Tesla customers to buy the electric cars with Bitcoin, helping to send the crypto market to record highs. However, the carmaker later suspended the Bitcoin payment opening citing environmental concerns over Bitcoin mining. Shares of Tesla fell 2.1 per cent, while Block dropped 1.4 per cent. Blockstream is a private company.
US labour board prosecutors plan to formally accuse Starbucks Corp of illegally firing a group of activists who have been trying to unionise their store in Memphis, Tennessee, unless the company first settles the case. Workers United, an affiliate of the Service Employees International Union, alleged in February that the company fired 7 employees – including almost all of the union leaders at the store – because of their support for unionisation. The National Labor Relations Board’s New Orleans-based regional director determined that the workers were illegally fired and will issue a complaint unless there is a settlement, agency press secretary Kayla Blado said in an email Friday (Apr 8). Starbucks did not immediately comment in response to an inquiry. The company has said that the employees were not punished for their involvement with the union or for talking to the media, but rather because they let off-duty staff and non-employees, including reporters, into their store when it was closed, and violated numerous safety rules. The firing of the seven Memphis workers is the most prominent of dozens of cases filed with NLRB offices across the country in which Workers United has alleged illegal anti-union tactics by Starbucks. The company has said that claims of anti-union activity are “categorically false”.
Oil prices rose 2 per cent on Friday (Apr 8) but notched their second straight weekly decline after countries announced plans to release crude from their strategic stocks. Brent crude futures settled up US$2.20, or 2.2 per cent, at $102.78 a barrel. US West Texas Intermediate (WTI) crude futures rose US$2.23 to $98.26. For the week, Brent dropped 1.5 per cent while WTI slid 1 per cent. For several weeks, the benchmarks have been at their most volatile since June 2020. Trading was choppy all day and the contracts spiked higher just before settlement as traders covered short positions ahead of the weekend, said John Kilduff, a partner at Again Capital. Member nations of the International Energy Agency (IEA) will release 60 million barrels over the next 6 months, with the United States matching that amount as part of its 180 million barrel release announced in March.
Source: SGX Masnet, The Business Times, Bloomberg, Channel NewsAsia, Reuters, CNBC, PSR
Click the link to join: https://t.me/stocksbnb
Date: 4 April 2022
For any research-related matters, email: research@phillip.com.sg
For general enquiries, email: talktophillip@phillip.com.sg
or call 6531 1555.
Read the research report(s), available through the link(s) above, for complete information including important disclosures Important Information
Disclaimer
The information contained in this email is provided to you for general information only and is not intended to create any binding legal relation. The information or opinions provided in this email do not constitute investment advice, a recommendation, an offer or solicitation to subscribe for, purchase or sell any investment product. 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 should obtain advice from a financial adviser before making a commitment to invest in any investment product or service. In the event that you choose not to obtain advice from a financial adviser, you should assess and consider whether the investment product or service is suitable for you before proceeding to invest.
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.
-
Download
POEMS 3 App -
Call Back
-
Chat with us
Useful Links
About Us
This advertisement has not been reviewed by the Monetary Authority of Singapore.
IMPORTANT INFORMATION
This material is provided by Phillip Capital Management (S) Ltd (“PCM”) for general information only and does not constitute a recommendation, an offer to sell, or a solicitation of any offer to invest in any of the exchange-traded fund (“ETF”) or the unit trust (“Products”) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. You should read the Prospectus and the accompanying Product Highlights Sheet (“PHS”) for key features, key risks and other important information of the Products and obtain advice from a financial adviser (“FA“) pursuant to a separate engagement before making a commitment to invest in the Products. In the event that you choose not to obtain advice from a FA, you should assess whether the Products are suitable for you before proceeding to invest. A copy of the Prospectus and PHS are available from PCM, any of its Participating Dealers (“PDs“) for the ETF, or any of its authorised distributors for the unit trust managed by PCM.
An ETF is not like a typical unit trust as the units of the ETF (the “Units“) are to be listed and traded like any share on the Singapore Exchange Securities Trading Limited (“SGX-ST”). Listing on the SGX-ST does not guarantee a liquid market for the Units which may be traded at prices above or below its NAV or may be suspended or delisted. Investors may buy or sell the Units on SGX-ST when it is listed. Investors cannot create or redeem Units directly with PCM and have no rights to request PCM to redeem or purchase their Units. Creation and redemption of Units are through PDs if investors are clients of the PDs, who have no obligation to agree to create or redeem Units on behalf of any investor and may impose terms and conditions in connection with such creation or redemption orders. Please refer to the Prospectus of the ETF for more details.
Investments are subject to investment risks including the possible loss of the principal amount invested. The purchase of a unit in a fund is not the same as placing your money on deposit with a bank or deposit-taking company. There is no guarantee as to the amount of capital invested or return received. The value of the units and the income accruing to the units may fall or rise. Past performance is not necessarily indicative of the future or likely performance of the Products. There can be no assurance that investment objectives will be achieved.
Where applicable, fund(s) may invest in financial derivatives and/or participate in securities lending and repurchase transactions for the purpose of hedging and/or efficient portfolio management, subject to the relevant regulatory requirements. PCM reserves the discretion to determine if currency exposure should be hedged actively, passively or not at all, in the best interest of the Products.
The regular dividend distributions, out of either income and/or capital, are not guaranteed and subject to PCM’s discretion. Past payout yields and payments do not represent future payout yields and payments. Such dividend distributions will reduce the available capital for reinvestment and may result in an immediate decrease in the net asset value (“NAV”) of the Products. Please refer to <www.phillipfunds.com> for more information in relation to the dividend distributions.
The information provided herein may be obtained or compiled from public and/or third party sources that PCM has no reason to believe are unreliable. Any opinion or view herein is an expression of belief of the individual author or the indicated source (as applicable) only. PCM makes no representation or warranty that such information is accurate, complete, verified or should be relied upon as such. The information does not constitute, and should not be used as a substitute for tax, legal or investment advice.
The information herein are not for any person in any jurisdiction or country where such distribution or availability for use would contravene any applicable law or regulation or would subject PCM to any registration or licensing requirement in such jurisdiction or country. The Products is not offered to U.S. Persons. PhillipCapital Group of Companies, including PCM, their affiliates and/or their officers, directors and/or employees may own or have positions in the Products. Any member of the PhillipCapital Group of Companies may have acted upon or used the information, analyses and opinions herein before they have been published.
This advertisement has not been reviewed by the Monetary Authority of Singapore.
Phillip Capital Management (S) Ltd (Co. Reg. No. 199905233W)
250 North Bridge Road #06-00, Raffles City Tower ,Singapore 179101
Tel: (65) 6230 8133 Fax: (65) 65383066 www.phillipfunds.com