Daily Morning Note – 13 December 2021
Welcome to our Daily Morning Note from our Research team!
Dear Valued Investors, Please note that today 13 December, will be the last day of our Morning Note for 2021. We will resume Morning Note in January 2022. Thank you!
Stock futures held steady in overnight trading Sunday after the S&P 500 notched its best week since February at a fresh record close, rebounding from a big sell-off triggered by fears of the Omicron COVID-19 variant. The Dow Jones Industrial Average futures traded 35 points higher. S&P 500 futures inched up 0.1% and Nasdaq 100 futures were flat. The overnight action followed a strong week on Wall Street as investors shrugged off a hot inflation reading. The blue-chip Dow gained 4% last week, breaking a four-week losing streak with its best weekly performance since March. The S&P 500 and the Nasdaq Composite jumped 3.8% and 3.6%, respectively, last week, both posting their best weekly performance since early February.
We are ceasing coverage of Yoma Strategic Holdings Ltd with immediate effect due to a reallocation of resources. The previous recommendation can no longer be relied upon.
There were 22 primary-listed stocks conducting share buybacks over the 5 sessions with a total consideration of S$61.0 million, down from the S$206.7 million for the preceding 5 sessions. CapitaLand Investment again led the consideration tally, paying an average price of S$3.35 per share. Secondary-listings Hongkong Land and Jardine Matheson Holdings also bought back shares during the period, with the latter announcing that it intends to increase the number of its share buybacks announced on Sep 30, 2021, by US$250 million, to now target returning up to US$500 million to its shareholders by Jun 30, 2022.
Digital Core Reit has an appraised portfolio value of US$1.4 billion that comprises 10 institutional quality data centres located in the United States and Canada, listed on SGX. The placement tranche was approximately 19.6 times subscribed while the public tranche was approximately 16.1 times subscribed. Under the placement tranche, Digital Core Reit DigiCore Reit USD: DCRU +3.6% Management independent non-executive director Tan Jeh Wuan was allotted 300,000 units at US$0.88 per unit.
Frencken Group chairman and non-executive non-independent director Gooi Soon Chai acquired 100,000 shares of the listed company for a consideration of S$206,000. This took his total interest in the high-tech capital and consumer equipment service provider from 23.38 per cent to 23.40 per cent.
Fortress Minerals non-executive and non-independent director Teh Lip Kim acquired 300,000 shares of the Catalist-listed company at an average price of 38.5 cents per share. With consideration of S$115,500, this increased Teh’s direct interest in the explorer, miner, producer, and seller of iron ore concentrate from 0.14 per cent to 0.20 per cent. This followed her acquisition of 300,000 shares at an average price of 38.0 cents per share between Nov 30 and Dec 1. Teh also maintains a 33.29 per cent deemed interest in Fortress Minerals which takes her total interest to 33.49 per cent.
Six stocks, including Airbnb and Lucid Group, will be added to the Nasdaq 100 index as part of its annual reconstitution, which adjusts the tech benchmark’s membership for changes in market capitalisation. Fortinet, Palo Alto Networks, Zscaler and Datadog will also be added to the index. CDW, Fox, Cerner, Check Point Software Technologies, Trip.com Group, and Incyte will be removed from the Nasdaq 100 to make room for the new additions. All changes are effective as of the close on Dec 17, the same day as the rebalancing of the S&P 500 Index takes effect.
More powerful, destructive, and deadlier storms will be the “new normal” as the effects of climate change take root, the top US emergency management official said Sunday after massive tornadoes ravaged six states. Meteorologists and other scientists have long warned of the growing intensity of weather events like storms, fires and flooding. But the crisis hit home in a terrifying way overnight on Friday into Saturday when more than two dozen twisters raked across large swaths of the American heartland, leaving more than 90 people dead, dozens missing and communities in ruin.
The Biden administration in the US will seek to bolster economic and security cooperation with Southeast Asia through a visit to the region next week by its top diplomat, as it works to forge a united front against China in the Indo-Pacific. Secretary of State Antony Blinken is due in the Indonesian capital Jakarta on Monday (Dec 13) and will also visit Malaysia and Thailand on his first Southeast Asia trip since President Joe Biden took office in January.
Source: SGX Masnet, The Business Times, Bloomberg, Channel NewsAsia, Reuters, CNBC, PSR
Microsoft Corp – Winning the global enterprise on cloud and security
Recommendation: BUY (Initiation); TP: US$405.00
Last Done: US$342.54; Analyst: Timothy Ang
– Microsoft’s cloud business, Azure, has doubled its market share, leveraging on the installed base of 72% of global enterprise servers with attractive pricing.
– Cybersecurity demand is accelerating upgrades to MSFT’s higher-end licenses, helping sustain historically high operating margins above 40%.
– Core productivity software user base still growing in the teens, reaching 300mn in FY21. A further boost is recent price increases starting in March 2022. We initiate coverage with a BUY recommendation and DCF-based target price (WACC 6.2%) of US$405.
POEMS Podcast: Let the Money Talk
Daily Morning Note – December 3, 2021
Daily Morning Note – December 2, 2021
LHN limited – SGX Company Insights Ep 44
Visit www.stocksbnb.com to learn more!
Join our Phillip Securities Research Telegram channel for the latest update on our stock coverage!
Click here to join: https://t.me/stocksbnb
Webinar Of The Week
Weekly Market Outlook: MUST, Digital Core REIT, LHN, Marco Polo Marine, Marathon Digital, SG Weekly.
Date: 6 December 2021
Updates summarised in 3 minutes
Phillip Research in 3 minutes: #29 Keppel Corporation; Initiation
For more videos on Phillip in 3 Mins
|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.|
|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.|