Daily Morning Note – 12 August 2021

Dear valued client,

Asian stocks look set for modest gains early Thursday after U.S. shares and Treasuries climbed on signs of moderating inflation that reduced concerns about an imminent paring back of Federal Reserve stimulus.

Futures edged up in Japan and Australia and were steady in Hong Kong. U.S. contracts fluctuated after the S&P 500 hit a record and the tech-heavy Nasdaq 100 fell amid a rotation to cyclical shares. Treasuries rose following a strong auction of 10-year notes and a U.S. inflation report lending support to the Fed’s assessment that price pressures are transitory. The dollar held a drop.

BREAKING NEWS

SG News

Agribusiness giant Wilmar International’s net profit for the first half of this year increased 23 per cent to US$750.9 million, from US$610.5 million in the year-ago period. Its board proposed an interim ordinary dividend per share of S$0.05 for the half year, up from S$0.04 in H1 2020. This is the group’s highest interim dividend since it listed, Wilmar International (Wilmar) said on Wednesday evening.

Oil exploration and production company Rex International announced on Wednesday that a 90 per cent-owned subsidiary, Lime Petroleum, has acquired a 20 per cent stake in two exploration licences in the North Sea. It said that Lime inked a deal with Norwegian fuel exploration company AkerBP to take a 20 per cent interest in licences PL867 and PL867B in the North Sea, pending regulatory approval. Rex said exploratory drilling is expected to commence in late-2022. The planned well will target a large prospect called Gjegnalunden, with a reservoir in the traditional Jurassic section.

Jiutian Chemical Group clocked a record half-yearly net profit of 160.3 million yuan (S$33.6 million), up 3.5 times from the 35.4 million yuan posted for the year-ago period. Group revenue rose 86.5 per cent year on year to 887.2 million yuan for the six months ended June 30, up from 475.7 million yuan. In a bourse filing on Wednesday, the group’s chairman Han Lianguo attributed the growth to strong demand for its main products, dimethylformamide (DMF) and methylamine, over the reported period amid China’s post-pandemic economic recovery.

China Everbright Water posted a 36 per cent rise in net profit to HK$548.2 million (S$95.8 million) for its first half ended June 30, 2021, from HK$404.5 million a year ago. The dual-listed environmental services group saw a “solid improvement” in market expansion and steady growth in its business scale during the half-year period, it said in a bourse filing on Wednesday. Earnings per share stood at 19.16 Hong Kong cents for the half year, up from 14.14 cents a year ago.

Indonesian coal producer Geo Energy Resources reported a record revenue of US$220.3 million for the first six months of this year, due to an increase in sales volume and a higher average selling price. Its first-half revenue increased 37 per cent from US$160.6 million in H1 2020, the mainboard-listed firm said in a filing on Wednesday night. The average Indonesian Coal Index price for 4,200 GAR (Gross As Received) coal had surged to US$47.78 per tonne in the first half of 2021, from US$30.61 per tonne the year before.


US News

US prices jumped again in July, but at a slower pace than in the prior month, according to government data released on Wednesday, as some impacts of the pandemic shutdowns appeared to dissipate. The consumer price index rose 0.5 per cent last month, seasonally adjusted, after a 0.9 per cent surge in June, the Labor Department said. Energy prices remained a key driver of inflation, jumping 1.6 per cent, while food prices rose 0.7 per cent, the report said.

United States President Joe Biden’s administration is quietly discussing a target date of 2050 for weaning aircraft off fossil fuels as part of the White House’s broader push to fight climate change,sources familiar with the matter said. The White House in recent days has stepped up efforts aimed at transforming the US economy, including promotion of climate-directed infrastructure spending and bringing auto companies on board in its push for more electric vehicle use.

US President Joe Biden will convene a summit with leaders from democratic nations on Dec 9 and 10 as part of a sustained effort to shore up the foundation of such governments, the White House said on Wednesday (Aug 11). The summit “will bring together heads of state, civil society, philanthropy and the private sector,” to discuss “the challenges facing democracy so as to collectively strengthen the foundation for democratic renewal,” with a follow-up, in-person session one year later, it said in a statement.

WeWork has launched its Growth Campus initiative in key cities of South-east Asia, including Singapore, and aims to support the region’s startup ecosystem. The co-working space operator said on Tuesday that the initiative includes close to US$8 million of investment in subsidised spaces, mentorship and education. Members of Growth Campus will have complimentary access to the WeWork Labs service, which offers “virtual acceleration support”. This includes online access to mentoring and coaching opportunities, customised educational programming, a global network and member community, and member benefits and discounts.

US food delivery firm DoorDash Inc held talks over the past two months to buy grocery delivery company Instacart for a likely price of between US$40 billion and US$50 billion, The Information reported on Wednesday, citing people familiar with the situation. The talks have fallen apart in recent weeks, the report added, partly over concerns whether the deal would get antitrust regulators’ approval.


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

TECHNICAL PULSE

Industrial & Commercial Bank of China Ltd

Analyst: Chua Wei Ren

Recommended Action: Technical BUY

ICBC (HKEX: 1398) sell-off since mid-April 2021 has reached its low point and technical has shown signs and indication of a rebound.

Buy spot: 4.42 Stop loss: 4.00 Take profit 1: 4.90 Take profit 2: 5.30

>> Read more technical reports

HK Reports – Read up on our Hong Kong reports here

Webinar Of The Week

Weekly Market Outlook: Keppel, Ascott, CapitaLand, Raffles, Sheng Siong, Far East Hospitality…..

Date: 02 Aug 2021

For more on Market Outlook

Updates summarised in 3 minutes

The Highlights EP01: LHN Limited – Optimisier of real-estate trends

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