Daily Morning Note – 13 July 2021

PHILLIP SUMMARY

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.


BREAKING NEWS

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

HK Reports – Read up on our Hong Kong reports here

Webinar Of The Week

Singapore Strategy & Stock Picks – Strategy & Stock Picks 3Q2021

Date: 11 July 2021

For more on Market Outlook

Updates summarised in 3 minutes

The Highlights EP01: LHN Limited – Optimisier of real-estate trends

For more videos on Phillip in 3 Mins

Read the research report(s), available through the link(s) above, for complete information including important disclosures Important Information





Disclaimer
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.
Confidentiality Note
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.