DAILY MORNING NOTE | 13 July 2023

Trade of the Day

Yangzijiang Shipbuilding Holdings Ltd (SGX: BS6)

Analyst: Zane Aw

(Current Price: S$1.52) – TECHNICAL BUY
Buy price: S$1.52 Stop loss: S$1.47 Take profit: S$1.70


The application for the second fortnightly July tranche of MAS 6-month T-bills is open today for investors to apply. The Auction Date, where the cut-off yield for this tranche will be announced on 20th July 2023.

Latest Singapore 6-Month Treasury Bill result

Cut-Off Yield: 3.99%

% of Non-Competitive Application Allotted: 96%


Singapore shares extended their advance for the third consecutive day on Wednesday (Jul 12) following overnight gains on Wall Street. This comes amid heightened expectations that the soon-to-be released US inflation figures would indicate moderating price pressures. Singapore stocks finished 11.52 points or 0.4 per cent higher at 3,175.36. Elsewhere, key benchmarks in Japan and China fell, while those in Hong Kong, South Korea, Taiwan, Australia and Malaysia closed higher.

Wall Street stocks advanced Wednesday (Jul 12) following a surprisingly benign US inflation report that raised hopes the Federal Reserve will soon end its monetary tightening campaign. The consumer price index, a key inflation gauge, rose 3.0 per cent from a year ago last month, the smallest increase since March 2021 and down from May’s reading as well. The Dow Jones Industrial Average advanced 0.3 per cent to 34,347.43. The broad-based S&P 500 gained 0.7 per cent to 4,472.16, while the tech-rich Nasdaq Composite Index climbed 1.2 per cent to 13,918.96.

Top gainers & losers

Factsheets


EVENTS OF THE WEEK

Factsheets


SG

Seatrium has secured a green trade finance facility from Oversea-Chinese Banking Corporation (OCBC) worth an estimated EUR720 million (S$1.04 billion). The facility, which comes with the issuance of a banker’s guarantee, is one of the largest syndicated financing solutions issued by a single bank for the maritime industry. The trade financing solution is aligned with internationally-recognised Green Loan Principles and will support Seatrium’s offshore renewable projects and decarbonisation efforts. As at March 31, renewables and cleaner or green solutions comprise about 39% of the group’s order book.

Mainboard-listed GSH Corporation has entered a sale and purchase agreement for the disposal of its Cecil Street property in Raffles Place for a consideration of S$38.8 million, the company said on Wednesday (Jul 12). The property was valued at S$37 million by an independent professional valuer, GSH added. It has a gross floor area of approximately 901 square metres, comprising nine strata units of offices. The purchaser, who was not named, is an unrelated party with no shareholding interest – direct or indirect – in the company or group.

Challenger Technologies has extended the closing date of its voluntary unconditional cash offer to 5.30pm on July 25, two weeks later than its original date of July 11. As at July 11, DigiTech Holdings, the offeror, received valid acceptances of around 390.1 million shares, representing 97.11% of the total number of shares in Challenger. Shares in the company were suspended after its free float fell below the required 10% in June. In its July 12 statement, Challenger, via its offeror, said that it does not intend to restore its public float or lift the trading suspension of its shares on the Singapore Exchange (SGX). It adds that it will exercise its rights of compulsory acquisition under the Companies Act to acquire all the shares from shareholders who have yet to accept the offer. The offer price will be equal to the final offer consideration, which was raised to 60 cents per share on June 6.


US

Amazon ’s Prime Day is off to a strong start, lifting third-party sellers’ and other retailers’ online sales, early data shows. On Tuesday, the first day of Amazon’s 48-hour sales event, online spending in the U.S. rose about 6% to $6.4 billion, making it the single-biggest e-commerce day so far this year, according to Adobe Analytics, which measures transactions at U.S. retail sites. Prime Day kicked off Tuesday and runs through Wednesday. Adobe expects total U.S. online sales to grow 9.5% year over year to $13.1 billion during the two-day event. Last year, U.S. consumers spent more than $11.9 billion.

The consumer price index, which measures inflation, increased 3% from a year ago, which is the lowest level since March 2021. On a monthly basis, the index, which measures a broad swath of prices for goods and services, rose 0.2%. That compared with Dow Jones estimates for respective increases of 3.1% and 0.3%. Stripping out volatile food and energy prices, core CPI rose 4.8% from a year ago and 0.2% on a monthly basis. Consensus estimates expected respective increases of 5% and 0.3%. The annual rate was the lowest since October 2021. In sum, the numbers could give the Federal Reserve some breathing room as it looks to bring down inflation that was running around a 9% annual rate at this time in 2022, the highest since November 1981.

Chipmaker Nvidia will invest $50 million in Recursion Pharmaceuticals to speed up the development of the biotech firm’s artificial intelligence models for drug discovery, the companies said Wednesday. Recursion’s stock soared 80% following the announcement. Shares of Nvidia, which have helped fuel stock market gains this year amid hopes about its AI computing chips, rose more than 2%. Recursion uses AI-powered models to identify and design new therapies, and offers those models to other drugmakers, including Roche and Bayer. Salt Lake City, Utah-based Recursion will use its biological and chemical datasets exceeding 23,000 terabytes to train its AI models on Nvidia’s cloud platform.

Shopify said on Wednesday (Jul 12) it would soon launch an artificial intelligence (AI) assistant for merchants on its platform, the latest technology company to roll out such a feature. The assistant called “Sidekick” would be embedded as a button on Shopify and answer merchant queries, including details about sales trends, CEO Tobi Lutke illustrated in a video posted on Twitter. The assistant can also help entrepreneurs update their stores on Shopify. For instance, it can apply discounts on all items on the website, if prompted to do so. The feature is “coming soon”, the video showed, without specifying the date when it would be rolled out.

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


RESEARCH REPORTS

PSR Stocks Coverage

Factsheets

Factsheets


For more information, please visit:

https://www.stocksbnb.com/singapore-stocks-coverage/


Upcoming Webinars

Strategy & Stock Picks 3Q23 (US)

Date: 13 July 2023

Time: 7.30pm – 9pm

Register: https://tinyurl.com/5n7cuwtm


Strategy & Stock Picks 3Q23 (SG)

Date: 15 July 2023

Time: 10am – 12pm

Register: https://tinyurl.com/2fsww93d


Guest Presentation by Ohmyhome [NEW]

Date: 20 July 2023

Time: 12pm – 1pm

Register: https://tinyurl.com/52fef7dh


POEMS Podcast:

Research Videos

Weekly Market Outlook: AMD, PanU, Tech Analysis, FANNGM, SG Weekly
Date: 10 July 2023
Click here for more on Market Outlook.
Sign up for our webinars here, and be among the first to receive economy and market updates.

PHILLIP RESEARCH IN 3 MINS

Phillip Research in 3 minutes: #29 Keppel Corporation; Initiation
Click here for more on Phillip in 3 mins.

Follow our Socials

Facebook Social Icon Instagram Icon Twitter Social Icon Youtube Social Icon Linkedin Social Icon TikTok Social Icon Spotify Social Icon

Join our Singapore Equity Research Community on POEMS Mobile 3 App for the latest research reports, market updates, insights and more

Click to join!

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.

Contact us to Open an Account

Need Assistance? Share your Details and we’ll get back to you

IMPORTANT INFORMATION

This material is provided by Phillip Capital Management (S) Ltd (“PCM”) for general information only and does not constitute a recommendation, an offer to sell, or a solicitation of any offer to invest in any of the exchange-traded fund (“ETF”) or the unit trust (“Products”) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. You should read the Prospectus and the accompanying Product Highlights Sheet (“PHS”) for key features, key risks and other important information of the Products and obtain advice from a financial adviser (“FA“) pursuant to a separate engagement before making a commitment to invest in the Products. In the event that you choose not to obtain advice from a FA, you should assess whether the Products are suitable for you before proceeding to invest. A copy of the Prospectus and PHS are available from PCM, any of its Participating Dealers (“PDs“) for the ETF, or any of its authorised distributors for the unit trust managed by PCM.  

An ETF is not like a typical unit trust as the units of the ETF (the “Units“) are to be listed and traded like any share on the Singapore Exchange Securities Trading Limited (“SGX-ST”). Listing on the SGX-ST does not guarantee a liquid market for the Units which may be traded at prices above or below its NAV or may be suspended or delisted. Investors may buy or sell the Units on SGX-ST when it is listed. Investors cannot create or redeem Units directly with PCM and have no rights to request PCM to redeem or purchase their Units. Creation and redemption of Units are through PDs if investors are clients of the PDs, who have no obligation to agree to create or redeem Units on behalf of any investor and may impose terms and conditions in connection with such creation or redemption orders. Please refer to the Prospectus of the ETF for more details.  

Investments are subject to investment risks including the possible loss of the principal amount invested. The purchase of a unit in a fund is not the same as placing your money on deposit with a bank or deposit-taking company. There is no guarantee as to the amount of capital invested or return received. The value of the units and the income accruing to the units may fall or rise. Past performance is not necessarily indicative of the future or likely performance of the Products. There can be no assurance that investment objectives will be achieved.  

Where applicable, fund(s) may invest in financial derivatives and/or participate in securities lending and repurchase transactions for the purpose of hedging and/or efficient portfolio management, subject to the relevant regulatory requirements. PCM reserves the discretion to determine if currency exposure should be hedged actively, passively or not at all, in the best interest of the Products.  

The regular dividend distributions, out of either income and/or capital, are not guaranteed and subject to PCM’s discretion. Past payout yields and payments do not represent future payout yields and payments. Such dividend distributions will reduce the available capital for reinvestment and may result in an immediate decrease in the net asset value (“NAV”) of the Products. Please refer to <www.phillipfunds.com> for more information in relation to the dividend distributions.  

The information provided herein may be obtained or compiled from public and/or third party sources that PCM has no reason to believe are unreliable. Any opinion or view herein is an expression of belief of the individual author or the indicated source (as applicable) only. PCM makes no representation or warranty that such information is accurate, complete, verified or should be relied upon as such. The information does not constitute, and should not be used as a substitute for tax, legal or investment advice.  

The information herein are not for any person in any jurisdiction or country where such distribution or availability for use would contravene any applicable law or regulation or would subject PCM to any registration or licensing requirement in such jurisdiction or country. The Products is not offered to U.S. Persons. PhillipCapital Group of Companies, including PCM, their affiliates and/or their officers, directors and/or employees may own or have positions in the Products. Any member of the PhillipCapital Group of Companies may have acted upon or used the information, analyses and opinions herein before they have been published. 

This advertisement has not been reviewed by the Monetary Authority of Singapore.  

 

Phillip Capital Management (S) Ltd (Co. Reg. No. 199905233W)  
250 North Bridge Road #06-00, Raffles City Tower ,Singapore 179101 
Tel: (65) 6230 8133 Fax: (65) 65383066 www.phillipfunds.com