DAILY MORNING NOTE | 12 April 2023
Trade of the Day
Analyst: Zane Aw
(Current Price: US$31.74) – TECHNICAL BUY
Buy price: US$31.74 Stop loss: US$30.00
Take profit 1: US$33.00 Take profit 2: US$37.40
Singapore shares rose 3.4 points or 0.1 per cent to close at 3,297.83 points on Tuesday (Apr 11), as most key Asian markets registered gains. In the wider Singapore market, gainers outnumbered losers 305 to 256, with 1.4 billion securities worth S$800 million traded. Ground handler and in-flight caterer Sats was the top performer on the benchmark index. The counter continued its recent rally, closing 1.8 per cent or S$0.05 higher at S$2.83 on Tuesday. At the bottom of the table was DFI Retail Group, which lost 1.3 per cent or US$0.04 to finish at US$3.05.
Wall Street stocks ended mixed on Tuesday as investors tried to look past downturn worries ahead of this week’s inflation data, which will be closely watched for its impact on central bank decisions. The movements came as the International Monetary Fund trimmed its global growth forecast while a Federal Reserve official urged caution about raising interest rates too aggressively. The Dow Jones Industrial Average ended 0.3 per cent higher at 33,684.79, while the broad-based S&P 500 was flat at 4,108.94. The tech-rich Nasdaq Composite Index slipped 0.4 per cent to 12,031.88.
Mainboard-listed Lian Beng’s controlling Ong family, through investment holding company OSC Capital, has made a voluntary unconditional cash offer to buy out minority shareholders at 62 Singapore cents a share. This is less than half of Lian Beng group’s net asset value (NAV), which was about S$1.54 per share as at end-November 2022. After the offer is completed, the company will be a wholly-owned subsidiary and delisted from the Singapore Exchange (SGX), according to a Tuesday (Apr 11) bourse filing.
Home-grown cancer diagnostics company Mirxes has made its first submission of documents to the Singapore Exchange (SGX) for an initial public offering (IPO) that could raise between US$100 million and US$200 million, according to people familiar with the matter. Mirxes would be one of the rare biotech startups to go public on the Singapore bourse, amid a broader push by the government to have tech startups listed locally. The offering, which might value the company at up to US$700 million, could mark Singapore’s biggest IPO in over a year.
Mainboard-listed Seroja Investments has received a notification of delisting, now that its appeal for more time to sign a definitive agreement to acquire a new business has been rejected. In a regulatory statement on Tuesday (Apr 11), the company disclosed that Singapore Exchange Securities Trading (SGX-ST) had notified it of its failure to meet listing rules, given that talks with a new target company for a potential reverse takeover were still ongoing.
Oil prices rose about 2 per cent on Tuesday on hopes that the Federal Reserve might ease up on its policy tightening after a key US inflation report this week, though concerns remain over Chinese demand. Brent crude futures settled up US$1.43, or 1.7 per cent, to US$85.61 a barrel. US West Texas Intermediate futures rose US$1.79, or 2.2 per cent, to US$81.53 a barrel. Investors were more optimistic that the US Federal Reserve is getting closer to ending its cycle of interest rate hikes, making dollar-priced oil cheaper for buyers holding other currencies.
Boeing on Tuesday (Apr 11) announced 130 airplane deliveries over the first quarter of 2023, inching past rival Airbus, which delivered 127 jets. Boeing’s deliveries were up almost 27 per cent from a year earlier, when it delivered 95 jets. The US planemaker delivered 64 aircraft in March, 36 per cent more than the 41 jets transferred to customers in the same month last year.
CarMax shares jumped 10% after it announced a beat on its earnings for the fourth quarter. The car retailer posted earnings of 44 cents per share, while analysts polled by Refinitiv had anticipated 24 cents per share. Meanwhile, the company’s revenue of $5.72 billion missed analysts’ estimates of $6.04 billion.
Moderna said on Tuesday its experimental flu vaccine did not meet the criteria for “early success” in a late-stage trial, and its shares fell 3%. The U.S. biotech company also said it expects to have six major vaccines on the market in the next few years. Its COVID-19 shot is currently the company’s lone marketed product. The company is banking on its respiratory vaccine candidates to help offset the expected steep fall in revenue from its hugely successful COVID-19 vaccine. Analysts have forecast 2023 Moderna COVID vaccine sales of around $7 billion, far less than the $18.4 billion windfall in 2022, due to decreasing demand.
Source: SGX Masnet, Bloomberg, Channel NewsAsia, Reuters, CNBC, WSJ, The Business Times, PSR
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