Daily Morning Note – 11 November 2021

PHILLIP SUMMARY

US shares fell sharply on Wednesday after consumer inflation hit a 30-year high, and as investors headed for the exits after a streak of gains over the last few weeks.

While some analysts said a decline was to be expected, the inflation data loomed large. The US consumer price index (CPI) surged 6.2 per cent in the 12 months ended in October, a 30-year high coming amid rising oil, auto and housing prices, according to the Labor Department data.

The benchmark Dow Jones Industrial Average dropped 0.7 per cent to finish the day at 36,079.94, and the broad-based S&P 500 fell 0.8 per cent to 4,646.71.


BREAKING NEWS

SG

Nordic Group (NGL) intends to make a voluntary conditional offer for engineering group Starburst Holdings at S$0.238 per share in cash. In a filing to the Singapore Exchange, it said that its wholly-owned unit Nordic Flow Control plans to make the offer for all the shares in Starburst that it does not own.

Daiwa House Logistics Trust (DHLT), which will invest in logistics and industrial real-estate assets across Asia, is seeking a listing on the Singapore Exchange. A preliminary prospectus lodged with the Monetary Authority of Singapore on Wednesday (10 Nov) says that the Reit’s manager will offer nearly 244.44 million units at S$0.80 a unit for subscription, as part of an offering which will include a placement tranche and a public offer.

AEM Holdings posted a 4.3 per cent fall in net profit to S$23.3 million for its third quarter ended Sep 30, from S$24.3 million a year ago. Revenue fell by 9.7 per cent to S$146.2 million in the same period, from S$161.8 million the year before. Still, the electronics services provider reported higher sequential quarter-on-quarter revenue in Q3 FY2021 of S$146.2 million, from S$112 million on the back of ramped-up volume for their next-generation system level testing handlers and peripheral tools. The group expects demand to continue rising in the next few quarters.

Geo Energy Resources posted record profits and revenue from operations in its third quarter ended Sep 30, 2021 as coal prices reached historic highs. In its Q3 FY2021 business update, the Indonesian coal producer posted a net profit from operations of US$45.5 million, marking a turnaround from a US$6.3 million loss a year ago. Basic earnings per share for the quarter also rose to S$0.0438 from S$0.0245. The diluted earnings per share for the quarter was S$0.0432.

US

US entertainment giant Disney said on Wednesday its flagship streaming service, which competes with Netflix and Amazon, grew slower than expected in the recently ended quarter. Disney+ has reached 118 million subscribers worldwide, but analysts had predicted millions more would sign up, resulting in a miss that saw the entertainment giant’s share price slip in after-market trades.

General Electric launched an offer to buy back as much as US$23 billion of debt as the industrial giant carries out a plan to slash its debt load. GE is targeting a series of bonds maturing through 2050 in an offer that expires on Dec 9, the company said in a statement on Wednesday.

DoorDash has added Europe to its menu with the purchase of Finland-based food delivery firm Wolt in an all-stock deal valued at US$8.1 billion, the company announced on Tuesday. The news came the same day DoorDash reported that its revenue grew 45 per cent to US$1.3 billion in the recently ended quarter but that its loss more than doubled to US$101 million when compared with the same period last year.


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

Technical Pulse: JD Health International Ltd

Recommended: BUY; Analyst: Chua Wei Ren

JD Health (HKEX: 6618) downtrend has come to a halt after recent prices broke out of the downtrend line. Current technical is indicating a rangebound move

Buy spot: 75.25 Stop loss: 54.20 Take profit 1: 100.00 Take profit: 117.50

Technical Pulse: Postal Savings Bank of China

Recommended: BUY; Analyst: Chua Wei Ren

Postal Savings Bank of China (HKEX: 1658) double rebound in July has given some hope to further upside. Recent technical has also indicate strong potential upside

Buy spot: 5.60 Stop loss: 5.20 Take profit 1: 6.26 Take profit: 6.50

POEMS Podcast: Let the Money Talk

Recent Podcasts:

Sheng Siong Group 3Q21 Results – SGX Company Insights Ep 41

Apple Inc 4Q21 Results – US Company Insights Ep 40

Amazon.com Inc 3Q21 Results – US Company Insights Ep 39

Visit www.stocksbnb.com to learn more!


Join our Phillip Securities Research Telegram channel for the latest update on our stock coverage!

Click here to join: https://t.me/stocksbnb


Webinar Of The Week

Weekly Market Outlook: Apple, Netflix, Facebook, Keppel DC, Fraser, IFAST, Japfa, SPH, Sheng Siong.

Date: 01 November 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





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.

 

Contact us to Open an Account

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

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