Daily Morning Note – 11 August 2021

Dear valued client,

Asian stocks looked set to follow their U.S. peers higher as investors assessed the ability of the economy to sustain less stimulus and rising virus outbreaks. Treasuries slipped and the dollar was steady.

Equities ticked higher in Japan and Australia, but slipped in South Korea. U.S. futures fluctuated. Earlier, the S&P 500 closed little changed, while the Nasdaq 100 ticked up. The dollar and Treasury yields held overnight gains. Crude oil pared a decline after it touched the lowest in three weeks on concern the delta strain will hamper demand growth

Futures pointed to modest gains in Japan and Australia and dipped in Hong Kong. U.S. contracts were little changed in Asia. Earlier, the S&P 500 climbed to an all-time high, while the tech-heavy Nasdaq 100 declined. Chip stocks retreated, while energy shares rallied. Crude oil bounced back from a three-week low on bets that the global demand recovery will remain intact despite the fast-spreading delta virus variant.


SG News

Beverage maker Yeo Hiap Seng (YHS) posted a net loss of S$1.21 million for the six months ended June 30, narrowing from the S$6.73 million loss reported in the year-ago period. The heritage brand attributed the improvements to double-digit growth in its core food and beverage revenue, and “positive momentum from key overseas markets”.

CapitaLand shareholders have voted in favour of the real estate group’s proposal to privatise its development arm and to list its fund-management and property-investment business. From September, CapitaLand will operate as two distinct entities: the new, listed unit CapitaLand Investments (CLI) and the privatised CapitaLand Development.

Wee Hur Holdings and ISOTeam separately announced on Tuesday that they would report net losses for, respectively, the six months and full year ended June 30. In a profit guidance released after market close, property group Wee Hur said that its weaker-than-expected financial performance for H1 2021 was partly due to additional costs required to complete projects for its construction arm in Singapore. Meanwhile, building maintenance and estate upgrading firm ISOTeam expects a net loss for its fiscal year ended June 30, given the “continued adverse impact” from the coronavirus pandemic and further provisions for impairment losses.

Grand Venture Technology has declared its first cash dividend, amounting to 0.5 Singapore cent per share, given strong bottom-line growth for the first half of this year. The proposed payment date for the interim dividend is Sept 10, after the books close on Aug 26. The manufacturing solutions and services provider, which went public in January 2019, expects to continue with a dividend payout ratio of up to 20 per cent. This will be subject to its profit performance, balance sheet and cash-flow requirements, as well as the availability of market opportunities for value-creating investments.

Increased footfall at its food outlets and a newly acquired business helped Koufu Group‘s H1 2021 net profit surge to S$9.9 million, almost quadrupling from S$2.5 million in the year-ago period. Revenue grew 18.8 per cent to S$105.7 million for the six months ended June 30, from S$89 million in the first half of last year. Earnings per share stood at 1.79 Singapore cents, up from 0.46 cent in H1 2020, said the operator and manager of food courts and coffee shops in a Tuesday filing.

US News

Robinhood Markets said on Tuesday it would buy fintech startup Say Technologies for US$140 million in an all-cash deal, weeks after the online brokerage’s stock market listing. New York-based Say, founded in 2017, has built a communication platform that crowdsources questions from retail investors and allows them to interact with the companies they invest in during annual meetings, earnings calls and other events.

Softbank has offloaded shares of U.S. tech giants like Facebook, Microsoft, Alphabet and Netflix, according to its latest financial report released on Tuesday. The Tokyo-headquartered conglomerate invests in publicly listed shares through its SB Northstar trading unit and provides a breakdown of the unit’s portfolio companies in its quarterly results. Facebook, Microsoft, Alphabet and Netflix were included in SB Northstar’s portfolio at the end of March but were absent from the list at the end of the April-June quarter, suggesting a reduction or a complete offload in holdings.

The Senate passed a $1 trillion bipartisan infrastructure plan Tuesday, a huge step for Democrats as they try to push President Joe Biden’s sweeping economic agenda through Congress. The legislation, which includes $550 billion in new funding for transportation, broadband and utilities, got through with Democratic and Republican votes. Senate Majority Leader Chuck Schumer, D-N.Y., next plans to turn to a budget resolution that would allow Democrats to approve what they see as a complementary $3.5 trillion spending plan without Republican votes.

Productivity in the US took a step back in the second quarter, indicating an easing in the rapid pace of efficiency gains seen in the prior three months. Nonfarm business employee output per hour increased at a 2.3 per cent annualised rate in the second quarter, according to Labor Department figures Tuesday. That compared to a 4.3 per cent rate in the first quarter and the 3.2 per cent projected in a Bloomberg survey of economists.

Hawaiian Airlines told U.S. staff they will be required to be vaccinated against Covid-19, becoming the third major carrier to issue such a mandate in less than a week. CEO Peter Ingram told employees Monday that they must receive their second shot, if they are getting a two-dose vaccine, by Nov. 1, though there will be exceptions for medical or religious reasons, according to a staff memo reviewed by CNBC. Last week, United Airlines became the country’s first major carrier to mandate vaccines, requiring that its 67,000-person U.S. workforce show proof of inoculation by Oct. 25 at the latest. Frontier Airlines also announced that it will require that its employees be vaccinated against Covid by Oct. 1 or that they are regularly tested.

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

Weekly Market Outlook: Keppel, Ascott, CapitaLand, Raffles, Sheng Siong, Far East Hospitality…..

Date: 02 Aug 2021

For more on Market Outlook

Updates summarised in 3 minutes

The Highlights EP01: LHN Limited – Optimisier of real-estate trends

For more videos on Phillip in 3 Mins

Read the research report(s), available through the link(s) above, for complete information including important disclosures Important Information

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.


Contact us to Open an Account

Need Assistance? Share your Details and we’ll get back to you


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