DAILY MORNING NOTE | 11 July 2023
Trade of the Day
Analyst: Zane Aw
(Current Price: S$0.130) – TECHNICAL BUY
Buy price: S$0.127 Stop loss: S$0.122
Take profit 1: S$0.138 Take profit 2: S$0.148
Singapore shares rose 9.85 points or 0.3 per cent to 3,149.32 on Monday (Jul 10). Latest data signalled a slowing in China’s manufacturing and consumer spending, which is hurting the momentum of the nation’s post-pandemic economic recovery despite measures by policymakers to boost liquidity. Benchmarks in Japan, Taiwan, South Korea and Australia fell, while key gauges in Hong Kong, China and Malaysia rose.
Wall Street stocks finished modestly higher Monday (Jul 10) as markets looked ahead to critical inflation data and major earnings announcements later in the week. The Dow Jones Industrial Average finished up 0.6 per cent at 33,944.40. The broad-based S&P 500 added 0.2 per cent at 4,409.53, while the tech-rich Nasdaq Composite Index also climbed 0.2 per cent to 13,685.48.
SG
Nanofilm Technologies is expected to report a net loss of approximately S$8 million for the six months ended Jun 30, 2023 due to a fall in revenue. The mainboard-listed company, which specialises in advanced materials and coatings, said in a regulatory filing on Monday (Jul 10) it is expecting to post a 34 per cent fall in revenue to S$73 million for the half year ended Jun 30, 2023. Nevertheless, the group will continue to recognise a positive earnings before interest, taxes, depreciation and amortisation for the period.
Freehold Katong Shopping Centre has been relaunched for collective sale at the same reserve price of S$638 million, after its recent en bloc bid closed in May without a sale. This makes it the fourth en bloc attempt for the owners of Katong Shopping Centre. The development was first put up for sale in 2016 and 2017 at S$630 million. At the current reserve price of S$638 million, the deal would translate to a land rate of S$2,277 per square foot per plot ratio (psf ppr) over its existing gross floor area (GFA).
Keppel on Monday (Jul 10) announced that it has secured US$70 million worth of contracts to provide long-term and recurring “energy-as-a-service” (EaaS) in Vietnam. Keppel’s EaaS enables businesses and building owners to enter a supply-and-service contract for energy usage and management without making significant upfront capital investments. Under the new contracts, Keppel will provide the service to Republic Holiday Inn, Republic Suite Plaza and Estella Place in Ho Chi Minh City, as well as Grand Mercure Hotel & Resort in Quang Binh province.
The race to get companies to switch to electric vans is heating up, with ComfortDelGro Engineering importing a new Chinese brand for sale or lease by the fourth quarter of 2023. The subsidiary of transport giant ComfortDelGro will be the exclusive distributor of commercial electric vehicles manufactured by ChangAn KuaYue (KYC). ComfortDelGro said it is targeting to sell about 100 electric vans by end-2024 through appointed dealerships here before raising the target over time.
US
Oil prices eased 1 per cent on Monday (Jul 10) on the increasing likelihood of more US interest rate hikes, but crude supply cuts from top oil exporters Saudi Arabia and Russia limited the losses. Brent crude futures settled down 78 US cents, or 1 per cent, at US$77.69 a barrel after touching their highest level in more than two months earlier in the session. US West Texas Intermediate crude fell 87 US cents, or 1.2 per cent, at US$72.99.
Gold prices edged higher in early Asian hours on Monday (Jul 10) after US jobs data last week cast doubts over the labour market’s strength, prompting investors to be more sceptical of the Federal Reserve’s rate hike trajectory. Spot gold was up 0.1 per cent at US$1,925.49 per ounce by 0104 GMT. US gold futures were down 0.1 per cent to US$1,931.00 per ounce.
Carl Icahn’s conglomerate Icahn Enterprises saw its shares pop 18% after the company said in a filing that it has amended the terms of his personal loans to separate them from the trading price of his company’s shares. The issue was highlighted by short seller Hindenburg in a research note, which had triggered a dramatic sell-off in the stock. Icahn will provide additional collateral of $2 billion from his personal funds and 320 million IEP shares in the amended agreement, the filing said.
Meta Platforms Twitter rival Threads crossed 100 million sign-ups within five days of launch, CEO Mark Zuckerberg said on Monday, dethroning ChatGPT as the fastest-growing online platform to hit the milestone. Threads has been setting records for user growth since its launch on Wednesday, with celebrities, politicians and other newsmakers joining the platform that is seen by analysts as the first serious threat to the Elon Musk-owned microblogging app. Twitter had nearly 240 million monetizable daily active users as of July last year, according to the company’s last public disclosure before Musk’s takeover, although data from web analytics companies indicates usage has dropped since then.
Source: SGX Masnet, Bloomberg, Channel NewsAsia, Reuters, CNBC, WSJ, The Business Times, PSR
RESEARCH REPORTS
PSR Stocks Coverage
For more information, please visit:
Upcoming Webinars
Strategy & Stock Picks 3Q23 (US)
Date: 13 July 2023
Time: 7.30pm – 9pm
Register: https://tinyurl.com/5n7cuwtm
Strategy & Stock Picks 3Q23 (SG)
Date: 15 July 2023
Time: 10am – 12pm
Register: https://tinyurl.com/2fsww93d
Guest Presentation by Ohmyhome [NEW]
Date: 20 July 2023
Time: 12pm – 1pm
Register: https://tinyurl.com/52fef7dh
POEMS Podcast:
Research Videos
Weekly Market Outlook: AMD, PanU, Tech Analysis, FANNGM, SG Weekly
Date: 10 July 2023
Click here for more on Market Outlook.
Sign up for our webinars here, and be among the first to receive economy and market updates.
PHILLIP RESEARCH IN 3 MINS
Phillip Research in 3 minutes: #29 Keppel Corporation; Initiation
Click here for more on Phillip in 3 mins.
Join our Singapore Equity Research Community on POEMS Mobile 3 App for the latest research reports, market updates, insights and more
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.
Follow our Socials