Daily Morning Note – 11 May 2021


Stocks look set to drop at the open in Asia Tuesday after a slide in U.S. equities as surging commodity prices stoked concern about inflation. Treasury yields rose.

Futures dipped in Japan, Australia and Hong Kong. U.S. contracts slipped after the Nasdaq 100 Index tumbled 2.6% amid the growing anxiety over inflation, which can threaten longer-horizon revenues typical of the technology sector. Tesla Inc. and Apple Inc. were among the biggest decliners. The benchmark S&P 500 Index fell from an all-time high, while the Dow Jones Industrial Average briefly topped 35,000 for the first time.

Copper jumped to a record while iron ore futures surged more than 10%. West Texas Intermediate crude fluctuated after a cyberattack forced the closure of a key U.S. pipeline, which operators hope to reopen by the end of the week.


SG News

Keppel Offshore & Marine (Keppel O&M), has through its wholly owned subsidiary Keppel Shipyard, secured a contract worth about US$2.3 billion. The contract was awarded by Brazil’s national oil company, Petroleo Brasileiro SA (Petrobras) on the basis of an international tender for the delivery of P-78, a floating production storage and offloading vessel (FPSO). Slated for delivery in late 2024, the FPSO will deployed in Brazil’s deepwater Buzios field. The P-78 is expected to have a production capacity of 180,000 barrels of oil per day, 7.2 million cubic metres of gas per day and a storage capacity of two million barrels of oil. It will rank among the largest in the global operating fleet of FPSOs, said Keppel Corp in a statement on Monday.

Coffee shop operator Kimly on Monday posted net profit of S$21.7 million for the first six months of the year ended March, more than doubling from S$10.5 million in H1 FY2020 net profit on the back of higher revenue and improved gross margin. Group revenue for the half-year period rose 14.2 per cent to S$122.6 million from S$107.4 million the previous year, as revenue contributions grew year on year across all business divisions of the group. The bulk of group revenue growth for H1 came mainly from the food retail division, which saw higher contributions from existing food stalls and increased food delivery sales, as well as from new food stalls and confectionery shops opened over FY2020.

In a business update, glovemaker UG Healthcare posted a net profit of S$34.3 million for the third quarter ended March 31, 2021, almost 57 times its net profit in the previous year. The group produced and sold a higher volume of gloves and had relatively stable average selling prices of both nitrile and natural latex gloves in key markets during the quarter. As a result, revenue more than doubled to S$93.5 million from S$38.6 million, even surpassing the S$91.8 million recorded for the nine-month period ended March 31 the year before.

Beverage and publishing company Fraser and Neave (F&N) on Monday posted a 16.1 per cent rise in net profit to S$83.4 million for the half-year ended March 31, 2021. Revenue increased 2 per cent to S$988.6 million. This was due to higher volumes in the beverages – comprising soft drinks and beer – and dairies segments in the food and beverage division, which recorded a 3 per cent rise in revenue to S$868.1 million. Revenue from the sale of beer nearly doubled, while improvement in soft drink sales was driven by higher sales from the vending business and functional products. Dairies revenue inched up 1 per cent due to higher canned milk sales and strong export volumes to Middle East and Africa.

Catalist-listed manufacturing-service provider Grand Venture Technology on Monday posted a first-quarter net profit after tax of S$3.3 million – five times higher than the figure in the preceding year. This was due to a 59 per cent rise in revenue to S$23 million, growing wallet share from its key customers as well as stronger gross profit margins, said the group in a business update.

In a business update, transport operator SBS Transit posted a profit after tax of S$23.3 million for the first quarter ended March 31, 2021, more than doubling from S$11.1 million the year before. Revenue fell 6.5 per cent to S$317 million but operating profit increased 70.9 per cent to S$24.9 million. Without Covid-19 government reliefs, operating profit would have fallen 52.5 per cent to S$6.3 million.

US News

Amazon said Monday it blocked more than 10 billion suspected listings of counterfeit goods on its platform last year as part of a global crackdown in the face of pressure from consumers, brands and regulators. The e-commerce colossus made the announcement in its first “brand protection report”, as part of its initiative to weed out listings of fakes by third-party sellers. The report said Amazon seized some two million counterfeit products last year and destroyed them to prevent them from being resold elsewhere. The company said it invested some US$700 million in the anti-counterfeiting initiative, including in machine learning technology, and “blocked more than 10 billion suspected bad listings before they were published in its stores”.

Ant Group, an affiliate of Alibaba, is becoming one of the first major privately run businesses to work with China’s digital currency trials. MYbank — an online-only bank in which Ant has a 30% stake — is allowing some users to link their accounts with China’s digital yuan app, state-backed China Securities Journal said Monday. The new feature is accessible to some users through Ant’s Alipay app, another report from the journal said. Alipay is one of the two primary mobile pay apps in China, where using smartphones for daily payment transactions is the norm.

A group of 40 state attorneys general on Monday urged Facebook chief executive Mark Zuckerberg to abandon plans to launch a version of Instagram for children under the age of 13. “Use of social media can be detrimental to the health and well-being of children, who are not equipped to navigate the challenges of having a social media account,” the officials said in a letter that was also signed by the attorneys general of the District of Columbia and three US territories. “Further, Facebook has historically failed to protect the welfare of children on its platforms.”

BioNTech announced Monday it will set up its Southeast Asia headquarters in Singapore, and will build a manufacturing facility in the city-state to produce its messenger RNA vaccines and other medicines to treat infectious diseases and cancer. The new site would be able to produce hundreds of million doses of mRNA-based vaccines each year, depending on the specific vaccine. The facility could be operational as early as 2023, the German biotechnology company said. It would allow the firm to scale up production for Southeast Asia to address future pandemic threats.

Source: SGX Masnet, The Business Times, Bloomberg, Channel NewsAsia, Reuters, PSR

HK Reports – Read up on our Hong Kong reports here

Webinar Of The Week

Market Outlook: Frasers, Mapletree, DBS, CapitaLand, Sheng Siong, FSL, FSG, SG Weekly

Date: 03 May 2021

For more on Market Outlook

Updates summarised in 3 minutes

Phillip Research in 3 minutes: #29 – Keppel Corporation; Initiation

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