DAILY MORNING NOTE | 12 December 2023

**Do note that the last day of Morning Note Issuance will be on 15 December 2023. Morning Note will resume in January 2024**


Singapore shares ended the first day of the trading week lower, bucking the trend in most regional markets amid an acceleration in China’s deflation in November. The index on Monday (Dec 11) retreated 0.7 per cent or 20.53 points to 3,090.2.

The Dow Jones Industrial Average gained 0.4 per cent to 36,404.93, its highest close since January 2022.The broad-based S&P 500 also advanced 0.4 per cent to 4,622.44, while the tech-rich Nasdaq Composite Index added 0.2 per cent at 14,432.49.


Top gainers & losers

Factsheets


EVENTS OF THE WEEK

Factsheets


SG

Property group Wing Tai Holdings said its wholly-owned subsidiary, Wincrown, has acquired a property in Melbourne, Australia, for A$28 million (S$24.7 million). The property – 11-27 Tavistock Place, Melbourne, Victoria 3000 – is a substation site located in the Melbourne central business district.

Bytedance’s TikTok and tech giant GoTo are combining their e-commerce businesses in Indonesia – Tokopedia and TikTok Shop Indonesia – under an existing Tokopedia entity, putting pressure on other e-commerce platforms such as Singapore’s Sea. Tokopedia is the online retail unit of GoTo, the merged entity between ride-hailing startup GoJek and e-commerce platform Tokopedia.

Automation solutions provider CSE Global has secured two major contracts worth S$27.7 million in the United States, it said in a bourse filing on Monday (Dec 11). The first contract is for the design, engineering and supply of power distribution centres for manufacturing fabs in the US, which are slated for execution between 2024 and 2025.

GIC has agreed to buy out its partner’s stake in UK specialist insurance and reinsurance broker Miller.After acquiring the shares from private equity firm Cinven, GIC will become the majority shareholder of Miller, GIC and Miller said on Monday (Dec 11).


US

Chinese chip designers including Tencent Holdings are aggressively pitching their AI chips as alternatives to Nvidia’s, hoping US export restrictions will prompt clients to switch, said four people familiar with such discussions. California-based Nvidia commands as much as 90 per cent of China’s US$7 billion market for chips used to process enormous amounts of data to develop artificial intelligence (AI) software.

Li Ning shares tumbled on Monday (Dec 11) as investors disapproved of the Chinese sportswear maker’s plan to buy a commercial building in Hong Kong, with some analysts saying the move was not the best use of capital.

Fast fashion company, Shein has held talks with the London Stock Exchange (LSE) about the possibility of a public listing in the United Kingdom, Sky News reported on Monday (Dec 11).

Huawei Technologies has asked Mercedes Benz and Volkswagen’s Audi if they are interested in buying small stakes in its smart car software and components firm, according to three people with knowledge of the discussions. The move is aimed at expanding its partnerships beyond Chinese brands, they said. Huawei, the target of US sanctions since 2019, also hopes the presence of foreign investors would help defend the business from potential further geopolitical tensions.

JPMorgan Chase is preparing to overhaul branches it acquired from failed First Republic Bank as the lender expands its formidable national footprint. “Branches have been a winning strategy for us that is helping us capture more market share,” Jennifer Roberts, CEO of Chase Consumer Banking.

Oracle reported slowing quarterly sales growth in its cloud computing business, fuelling investor fears that the software maker’s expansion efforts have yet to gain ground the competitive market. The shares fell about 8 per cent in extended trading.

Manulife Financial agreed to reinsure C$13 billion (S$12.9 billion) of reserves with KKR & Co’s Global Atlantic Financial Group and its partners in a deal the company said is the largest long-term care reinsurance transaction in the industry’s history.

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


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