DAILY MORNING NOTE | 13 April 2023

Trade of the Day

Del Monte Pacific Ltd (SGX: D03)

Analyst: Zane Aw

(Current Price: S$0.240) – TECHNICAL BUY
Buy price: S$0.240 Stop loss: S$0.230
Take profit 1: S$0.275 Take profit 2: S$0.290


Broadcom Inc. (NASDAQ: AVGO)

Analyst: Zane Aw

(Current Price: US$621.57) – TECHNICAL SELL
Sell price: US$621.57 Stop loss: US$644.00 Take profit: US$546.00


Singapore shares fell 0.4 per cent or 11.71 points to close at 3,286.12 points on Wednesday (Apr 12), as key markets across Asia saw mixed trading. In the wider Singapore market, losers edged out gainers 282 to 260, with 1.2 billion securities worth S$870.2 million traded. The Shanghai Composite Index, South Korea’s Kospi and Japan’s Nikkei 225 rose between 0.1 per cent and 0.6 per cent, while Hong Kong’s Hang Seng Index and the FTSE Bursa Malaysia KLCI fell between 0.1 per cent and 0.9 per cent

Wall Street stocks finished a volatile session lower Wednesday (Apr 12) after minutes showed US Federal Reserve economists in March projected a “mild recession”. Equities resumed a downward track following the afternoon disclosure, which shed light on the central bank’s Mar 22 decision. The Dow Jones Industrial Average edged down 0.1 per cent to 33,646.50. The broad-based S&P 500 declined 0.4 per cent to 4,091.95, while the tech-rich Nasdaq Composite dropped 0.9 per cent to 11,929.34.

Top gainers & losers

Factsheets



EVENTS THIS WEEK

Factsheets


SG

Singapore Exchange Regulation (SGX RegCo) on Wednesday (Apr 12) issued a “trade with caution” alert on Digilife Technologies, after its share price rose by 157 per cent or S$1.76, from S$1.12 on Jan 6 to S$2.88 on Apr 11. It said that between Mar 1 and Apr 11, Digilife Tech’s share buybacks contributed to about 70.6 per cent of the stock’s buy volume. In that period, the stock’s share price rose S$1.08 or 60 per cent, from S$1.80 to S$2.88.

Meta Health, on April 12, announced that it has lodged a police report against Dr Vas Metupalle, who is the chief medical officer of its wholly-owned subsidiary 5Digital. The police report was lodged on the same day as Metupalle’s termination. In its filing, Meta Health stated that it had “reasonable grounds” to believe that Metupalle had deceived or sought to deceive 5Digital and the group after conducting its own investigations. While investigations by the police are still ongoing, Meta Health expects the allegations to have a “material negative impact” on its financial statements for the FY2022 ended Dec 31, 2022.

Beng Kuang Marine has entered into a conditional land sale & purchase agreement to sell a part of its Batam waterfront shipyard property for $8.64 million to a subsidiary of Oil States Industries, a major global provider of integrated energy systems and solutions. In the recent years, the group has been prioritising cost minimisation and deleveraging initiatives, while focusing on monetising fixed assets and high-potential business segments within its core business divisions to create new growth catalysts.


US

Inflation cooled in March as the Federal Reserve’s interest rate increases showed more impact, the Labor Department reported Wednesday. The consumer price index, a widely followed measure of the costs for goods and services in the U.S. economy, rose 0.1% for the month against a Dow Jones estimate for 0.2%, and 5% from a year ago versus the estimate of 5.1%. Excluding food and energy, the core CPI increased 0.4% and 5.6% on an annual basis, both as expected.

Shares of the major airline companies were under pressure on Wednesday after American Airlines updated its first-quarter guidance. American said it expected adjusted earnings per share of 1 cent to 5 cents for the quarter, according to a filing with the Securities and Exchange Commission. That is above prior guidance of breakeven, but the average analyst projection was for 5 cents. Shares of American fell more than 9% on April 12.

Oil prices rose 2 per cent on Wednesday (Apr 12) as cooling US inflation data spurred hopes that the Federal Reserve is getting closer to ending its cycle of interest-rate hikes and cushioned the impact of a small build in US crude oil stocks. Brent crude settled up US$1.72, or 2.01 per cent, at US$87.33 a barrel while US West Texas Intermediate closed up US$1.73, or 2.1 per cent, to US$83.26. Prices rose about 2 per cent on Tuesday.

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


RESEARCH REPORTS

PSR Stocks Coverage

Factsheets


Factsheets


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