Daily Morning Note – 13 July 2021


Asian stocks looked set to open firmer Tuesday after their U.S. counterparts notched yet more all-time highs as investors awaited second-quarter earnings season. Treasury yields were steady as the U.S. sold debt. Futures climbed in Japan, Australia and Hong Kong. U.S. contracts were little changed. Financials and communication services shares led the S&P 500 to another record, while Tesla, Nvidia and Google parent Alphabet helped push the tech-heavy Nasdaq 100 to new highs. The U.S. Treasury sold $58 billion of three-year notes at yields slightly higher than before the auction. A sale of $38 billion of 10-year notes was greeted by stronger demand. The dollar gained against most major peers. Oil was steady after dipping for the first time in three days as traders grappled with the demand implications of a Covid-19 resurgence in several regions and slowing economic growth in China.


SG News

IX Biopharma is looking to spin off and list its pharmaceutical and medicinal cannabis business on the mainboard of the Stock Exchange of Hong Kong (HKEX), the company announced in a bourse filing on Monday. The speciality pharmaceutical company will restructure its pharmaceutical and medicinal cannabis business to be held by Ligo Pharma, a subsidiary that was incorporated on March 31 in the Cayman Islands.

The offer for Fragrance Group has turned unconditional as the offeror JK Global Treasures and parties acting in concert have secured over 50 per cent of the total issued shares, said the offeror on Monday. After garnering about 91.5 per cent of the total shares with parties acting in concert as at 6pm on July 11, the offeror announced in a statement that the acquisition is now unconditional.

Total market turnover value on the Singapore Exchange (SGX) fell 11 per cent on the month to S$26.8 billion in June, while securities daily average value stood at S$1.22 billion. Market turnover value of structured warrants and daily leverage certificates almost doubled month on month to S$613 million, SGX said in its monthly market statistics report on Monday.

SPH Real Estate Investment Trust’s (Reit) revenue and distribution rose in the third quarter ended May 31, with distribution per unit (DPU) for the quarter reaching pre-Covid levels. Gross revenue for the nine months ended May 31 was up 22.2 per cent year on year at S$209.6 million, according to a business update by the Reit after market close on Monday. This was led by improving performance across all assets and supported by an additional quarter of financial contribution from Australian mall Westfield Marion, relative to the year-ago period, as well as a decrease in rental relief for eligible tenants in Singapore and Australia, said SPH Reit.

The board of Kitchen Culture Holdings has confirmed that the recent dismissal of chief executive Lim Wee Li was based on findings in an interim report from Baker Tilly Consultancy. The group, which is in the business of supplying kitchen equipment, has also suspended the trading of its shares on Monday following a trading halt called on July 7.

Lippo Malls Indonesia Retail Trust will temporarily close its malls in Medan, Indonesia after emergency public activity restrictions to curb the spread of Covid-19 were extended to the region, its manager said on Monday in a bourse filing. The malls will be closed from July 12 to 20, with only essential services such as supermarkets, pharmacies, banks and clinics allowed to remain open with shorter operating hours and capacity limits. Restaurants and cafes will be able to offer only delivery and takeaway.

US News

Broadcom Inc., one of the world’s largest chipmakers, is in talks to acquire closely held software company SAS Institute Inc., according to a person familiar with the matter. A deal, which would value the software maker at $15 billion to $20 billion, may be reached in the coming weeks, said the person, who asked to not be identified because the matter isn’t public. No final decision has been made and the talks could end without a purchase, the person said.

The FDA is preparing to announce a new warning for the Johnson & Johnson coronavirus vaccine saying the shot has been linked to Guillain-Barré syndrome, a serious but rare side effect in which the immune system attacks the nerves, the Washington Post reported, citing sources. NOTE: JNJ erases gain and drops to session low; falls as much as 0.7%.

Didi Global Inc. warned of negative impact after complying with a Chinese order to remove 25 more apps from mobile stores for violations of data security laws. China’s cyberspace regulator on Friday banned downloads of the services for “serious illegal collection and use of personal information.” They included the enterprise version of its core service, as well as apps covering finance and delivery.

Celldex Therapeutics surges 37% in premarket trading with H.C. Wainwright analyst Joseph Pantginis raising his share price target to $50 from $36, adding that he’s “encouraged” by the company’s early clinical updates. There are no currently approved therapies for CIndU, and though these data are only in a Phase 1b, they continue to potentially build a transformational profile, Pantginis said in the report

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

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