Daily Morning Note – 12 April 2021

PHILLIP SUMMARY

Asian stocks look poised for a steady start Monday after a third straight weekly Wall Street advance, with Federal Reserve Chair Jerome Powell flagging the prospect of stronger growth and hiring. The dollar ticked up.

Futures in Japan and Hong Kong were in the green and Australian contracts climbed. U.S. equity futures dipped in early trading. The S&P 500 Index closed above 4,100 Friday as investors braced for earnings reports this week.


BREAKING NEWS

SG

Kenneth Low Si Ren, an executive director of Allied Technologies, was called in by the Commercial Affairs Department on Wednesday and released on a bail bond the same day, the Catalist-listed company disclosed in a bourse filing on Friday night. According to Mr Low, no formal charges have been filed, the company said. The board has not been provided with further details.

Troubled oil and gas group KrisEnergy has received a requisition notice from two shareholders to convene an extraordinary general meeting (EGM), over concerns about the restructuring of the mainboard-listed company. The shareholders are Ng Kay Yip and Serle Investments, who said that they hold 21.13 per cent of KrisEnergy’s shares, the company revealed in a Saturday bourse filing. Serle is represented by Michael Yeoh Sock Siong.

Multi-label retailer Naiise may wind up, after years of payment delays to its vendors. It said on Friday (April 9) that it is closing its last store at Jewel Changi Airport. “A tenant has been found to take over the space and this will be shared when the store is ready to open,” its spokesman said

US

Microsoft is in advanced talks to buy artificial intelligence and speech technology company Nuance Communications at about US$16 billion, according to a source familiar with the matter. The price being discussed could value Nuance at about US$56 a share, the source said, adding that an agreement could be announced as soon as Monday.

A senior Apple executive has agreed to testify before the US Senate on competition issues related to mobile app stores, days after panel leaders criticised the company for refusing to appear. The company said in a letter sent to senators, seen by Reuters, that chief compliance officer Kyle Andeer will be available to testify at an April 21 hearing held by part of the Senate Judiciary Committee.

The US economy is at an “inflection point” with expectations that growth and hiring will pick up speed in the months ahead, but some risks remain, particularly any resurgence in the coronavirus pandemic, Federal Reserve Chair Jerome Powell said. In a brief preview of a longer interview with CBS’ news magazine program “60 Minutes” set to air in full on Sunday night, Mr Powell echoed both his recent optimism about the economy and a now-familiar warning that Covid-19 remains the main risk.

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

TECHNICAL REPORTS

Jiutian Chemical Group Ltd

Analyst: Chua Wei Ren

Recommended Action: Technical BUY

Jiutian Chemical (SGX: C8R) technical shows that the upside is set to continue to rally once more despite the corrective range from November 2020
Buy spot: 0.092 Stop loss: 0.075 Take profit 1: 0.120 Take profit 2: 0.130


>> Read more Technical reports

RESEARCH REPORTS

Singapore REITs Monthly – Not to be overlooked

Recommendation: OVERWEIGHT (Maintained), Analyst: Natalie Ong

– STI and FTSE ST Real Estate Holding and Development Index trading close to FTSE S-REIT Index, as investors rotate to cyclical sectors to tap recovery prospects. All sub-sectors in the green except Healthcare (-0.1%). Office (+8.5%) the biggest gainer.

– Rising interest rates indicative of a recovering economy but will hurt REITs. Near term, we expect further interest rate growth to be capped. DPUs to stay in excess of interest-rate growth, providing upside for SREITS.

– Remain OVERWEIGHT with selective sector preferences. Catalysts expected from pick-up in economy activity. SREITs expected to resume DPU growth. REITS under our coverage expected to deliver FY21e DPU yields of 3.6-8.8%. Prefer Retail and Industrial. Top picks are Manulife US REIT (MUST SP, BUY, TP US$0.84) and Ascendas REIT (AREIT SP, BUY, TP S$3.64).

>> Read more research reports

HK Reports – Read up on our Hong Kong reports here

Webinar Of The Week

Market Outlook: Lendlease REIT, Credit Bureau Asia, Southern Alliance Mining, CICT, SG Weekly

Date: 22 March 2021

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