DAILY MORNING NOTE | 12 July 2023

Trade of the Day

ISDN Holdings Ltd (SGX: I07)

Analyst: Zane Aw

(Current Price: S$0.445) – TECHNICAL BUY
Buy price: S$0.435 Stop loss: S$0.410
Take profit 1: S$0.490 Take profit 2: S$0.520

Singapore shares finished higher for the second straight day on Tuesday (Jul 11), buoyed by China’s efforts to prop up its ailing property sector, and ahead of key US inflation data. Singapore stocks climbed 14.52 points or 0.5 per cent to 3,163.84, buoyed by overnight gains on Wall Street. On the local bourse, some 1.8 billion securities worth S$851.3 million were traded on Tuesday. Gainers trumped losers, with 348 counters up and 215, down. Similarly, key bourses across the region from Japan, Hong Kong and China to South Korea, Malaysia and Australia also finished higher.

Wall Street stocks rose for a second straight session on Tuesday (Jul 11) ahead of a key US inflation report that will affect the odds of further Federal Reserve interest rate increases. The Dow Jones Industrial Average finished up 0.9 per cent at 34,261.42. The broad-based S&P 500 advanced 0.7 per cent to 4,439.26, while the tech-rich Nasdaq Composite Index gained 0.6 per cent to 13,760.70.

SG

State investor Temasek reported a 5.07 per cent decline in its one-year total shareholder return (TSR) for FY2023 ended March and a net portfolio value (NPV) of S$382 billion, down from S$403 billion a year ago, as global asset valuations fell in the last year. This is the worst one-year TSR it has generated in seven years. Among the factors that affected its performance – persistent inflation despite rate hikes by central banks; intensifying geopolitical tensions; and rising nationalism and protectionism, leading to a “marked shift” away from the globalisation that has supported global growth over the past 20 years.

The Housing and Development Board (HDB) has awarded a mixed-use land parcel in Tampines Avenue 11 to a joint venture between a UOL-Singapore Land consortium and CapitaLand Development at a tender price of S$1.21 billion, HDB announced on Tuesday (Jul 11). The 99-year leasehold plot, just under 50,680 square metres (sq m) in size, can yield a maximum gross floor area of 126,700 sq m, with a maximum building height of 64 m. The joint venture companies, Topaz Residential and Topaz Commercial, will develop the site for commercial and residential use, and integrate it with a bus interchange, community club and hawker centre. The land is expected to be able to host 1,190 housing units, HDB said.

Substantial shareholder of Catalist-listed ICP Aw Cheok Huat has launched a mandatory conditional cash offer for shares of the company at S$0.007 apiece, after acquiring an additional 773.2 million shares on Tuesday (Jul 11). The offer was triggered after he acquired a 23.2 per cent stake in a S$5.4 million married deal, bringing his total deemed interest in ICP to 42.63 per cent, amounting to over 1.42 billion shares. He was previously deemed to have a 19.43 per cent stake, comprising 647.6 million shares. This change in shareholding comes ahead of ICP’s extraordinary general meeting (EGM) on Jul 26, requisitioned by shareholder Ang Kong Meng to pass seven resolutions.

US

Oil prices jumped on Tuesday (Jul 11), settling up about 2 per cent, boosted by a falling US dollar, hopes for higher demand in the developing world and supply cuts by the world’s biggest oil exporters. Brent futures rose US$1.71, or 2.2 per cent, to settle at US$79.40 a barrel. US West Texas Intermediate (WTI) crude rose US$1.84, or 2.5 per cent, to settle at US$74.83. Brent’s settlement was its highest since Apr 28 and WTI’s since May 1. Brent was in technically overbought territory for the second time in three days.

Microsoft won a court’s okay to move forward with its US$69 billion deal to buy Activision Blizzard, defeating an effort by the US Federal Trade Commission (FTC) to block the largest ever gaming deal. The decision by Judge Jacqueline Scott Corley in San Francisco means Microsoft could close its merger with Activision ahead of a Jul 18 deadline everywhere except for the UK, which vetoed the deal in May. Microsoft has said it struck the deal to acquire Activision in order to add mobile games – an area where it has virtually no presence. Activision owns King, the maker of Candy Crush. The combination will vault Microsoft to the No 3 slot among global video-game companies behind China’s Tencent Holdings, the publisher of League of Legends, and game console rival Sony.

Bank of America Corp agreed to pay US $150 million in fines and US$100 million to customers for improperly charging extra fees, withholding rewards and opening unauthorised credit-card accounts, US regulators said. The Consumer Financial Protection Bureau said it fined the bank for “systematically double-dipping on fees imposed on customers with insufficient funds in their account.” The lender also failed to pay promised credit-card reward bonuses and enrolled customers for cards without their knowledge or authorisation. The bank agreed to pay US$90 million of the penalty to the CFPB and US$60 million to the Office of the Comptroller of the Currency. Bank of America didn’t admit to or deny the allegations as part of the settlement.

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

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