Daily Morning Note – 11 November 2021
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.
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 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
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
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
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Date: 01 November 2021
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Phillip Research in 3 minutes: #29 Keppel Corporation; Initiation
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