Daily Morning Note – 14 September 2021

Dear valued client,

Asian stocks look set for a steady open after the U.S. snapped a five-day drop ahead of inflation data that could impact expectations of the likely timeline for a reduction in Federal Reserve stimulus. U.S.-traded Chinese technology shares declined for a fourth day on Beijing’s regulatory crackdown. The S&P 500 rose as energy companies paced gains after crude oil extended a rally to a six-week high. And commodities prices have surged to a 10-year high.

China’s economy likely slowed further in August, with data on consumption, industrial output and investment due Wednesday set to reveal the damage caused by a delta outbreak. The extent of the slowdown will be closely watched for signs that it’s serious enough to prompt authorities to change their current stance of slowly withdrawing liquidity from markets and keeping stimulus limited. Meanwhile, China urged the U.S. to take steps to repair their frayed relations, as the Biden administration considers a new investigation into Chinese industrial subsidies. And China Evergrande, which is quickly becoming the country’s biggest financial worry, is facing mounting protests by homebuyers, retail investors and even its own empl


SG News

Private commercial landlords in Singapore will be required to provide two weeks of rental waiver to qualifying tenants under the new Rental Waiver Framework tabled in Parliament on Monday. As part of the Covid-19 (Temporary Measures) (Amendment No 4) Bill, the Rental Waiver Framework is being implemented to assist small and medium enterprises (SMEs) and specified non-profit organisations (NPOs) affected by the tightened safe-management measures during Phase 2 (Heightened Alert) or P2HA. In July, when the second P2HA period was announced, the Singapore Retailers Association had urged a mandatory rental rebate of at least 50 per cent for as long as the tightened restrictions are in place. Under the framework, eligible tenants will receive a total of about 1.5 months of rental support, of which a month comes from the government’s Rental Support Scheme (RSS) payout announced earlier this year. The first RSS payout had been disbursed starting Aug 6.

Singapore new private home sales down 24% to 1,211 units in August. New private home sales slipped in August after hitting a six-month high the previous month. Based on caveats lodged, analysts estimated that developers in Singapore sold 1,211 new private homes in August, down 23.8 per cent from July’s 1,589 units. Despite the lower numbers, Ismail Gafoor, chief executive officer of PropNex, said last month’s sales were “relatively healthy”. “It demonstrated the market’s resiliency in spite of the lack of new launches, the Hungry Ghost Festival as well as the Phase 2 (Heightened Alert) restrictions from 22 July to 18 August,” he said. Typically, the “hungry ghosts” month is a quiet period for the property market. Comparing year on year, the estimates are 3.7 per cent lower than the 1,258 new private homes sold in August 2020.

Patrick Grove, an Internet entrepreneur, is weighing listing a special purpose acquisition company (SPAC) in Singapore, according to people familiar with the matter, joining the race to be the first to sponsor blank-cheque vehicles under the new rules unveiled by the city-state last week. The chairman of Catcha Group, an Internet-focused investment company in South-east Asia, has had discussions with Singapore Exchange about a potential listing, the people said, asking not to be identified as the talks are private. The Australian businessman already took his blank-cheque firm named Catcha Investment Corp public in the US earlier this year, raising US$300 million.

The manager of Prime US Reit is in discussions with tenant WeWork on the resolution of the latter’s lease obligations at Tower 1 at Emeryville, a Class A office property in California. The statement comes after the local San Francisco press reported that WeWork will be closing its co-working operation at the building. WeWork occupies 56,977 square feet (sq ft) of space within the real estate investment trust’s 3.89 million sq ft portfolio, the manager said in a bourse filing on Monday. The co-working operator also contributes about 2.5 per cent of Prime US Reit’s cash rental income as at June 30. If the counterparty honours its obligations, such protections will cover the tenant’s monthly lease obligations through as much as end-2022.

Frasers Property’s executive condominium (EC) Parc Greenwich moved about 65 per cent or 322 of its 496 units over its launch weekend on Sept 11 and 12. Prices started from S$895,000 for the two-bedroom units, S$1.05 million for the three-bedroom units, S$1.2 million for the three-bedroom-plus-study units, S$1.38 million for the four-bedroom units and S$1.7 million for the five-bedroom units. The apartments were sold at an average price of about S$1,200 per square foot, developers Frasers Property and CSC Land said in a joint release on Monday. All the two-bedroom and five-bedroom apartments were said to be fully snapped up, while the three-bedroom apartments sold 220 of its 370 units and the four-bedroom apartments sold 74 of the 98 units.

US News

Apple is holding its annual iPhone event on Tuesday, the company’s seventh virtual launch in a row due to the pandemic. The company is expected to introduce new iPhones and updates to its AirPods and Apple Watch, according to analysts. Apple’s hype-filled fall launches are a signature of the company. They garner worldwide media attention, millions of viewers on YouTube and Apple’s website, and set the stage for a holiday season marketing blitz when Apple’s sales are highest. All of Apple’s product segments have been on a tear this year as people work from home. Last quarter, iPhone revenue was up 50% year over year, while Mac and iPad revenues were up 16% and 12%, respectively, over the period. Its “other products” business, which includes devices like watches and AirPods, was up 40% year over year. Apple can keep the momentum going with a fresh slate of new products ahead of the holidays. Last year due to Covid, Apple revealed its new watches in September and then followed with an October iPhone 12 event. The iPhone 12 introduced an all-new design and 5G.

Toast is gearing up for an IPO next week that could value the restaurant-tech company at more than $16 billion — that’s about double its valuation from a secondary share sale last November. The company has taken a very uneven path to the New York Stock Exchange. Prior to the Covid-19 pandemic, Toast was thriving by selling technology to restaurants that helped them combine their payment systems with things like inventory management and multi-location controls for eateries with more than one site. Investors valued the company at $5 billion in February 2020. Two months later, Toast slashed about 50% of its workforce and froze hiring as coronavirus cases surged and businesses shut down. CEO Chris Comparato wrote in a blog post at the time that in March, “as a result of necessary social distancing and government-mandated closures, restaurant sales declined by 80 percent in most cities.”

Oracle shares fell as much as 3% in extended trading on Monday after the enterprise software maker reported fiscal first-quarter revenue that came in under analysts’ expectations. Revenue increased by 4% year over year in the quarter, which ended on Aug. 31, according to a statement. In the previous quarter Oracle’s revenue had gone up 8%. With respect to guidance, analysts polled by Refinitiv are expecting fiscal second-quarter adjusted earnings of $1.08 per share and $10.25 billion in revenue, which works out to almost 5% revenue growth. Oracle’s largest business segment, cloud services and license support, generated $7.37 billion in revenue, which is up 6% and below the StreetAccount consensus estimate of $7.41 billion.

Oil prices rose to a six-week high on Monday as US output remains slow to return two weeks after Hurricane Ida slammed into the Gulf Coast and worries another storm could affect output in Texas this week. Those price gains came even though the Organization of the Petroleum Exporting Countries (Opec) trimmed its world oil demand forecast for the last quarter of 2021 due to the Delta coronavirus variant. Brent futures rose 59 cents, or 0.8 per cent, to settle at US$73.51 a barrel, while US West Texas Intermediate (WTI) crude rose 73 cents, or 1.1 per cent, to settle at US$70.45.

Walmart denied agreeing to partner with Litecoin, refuting an earlier “inauthentic” statement that sent the cryptocurrency soaring as much as 33%. According to the release on GlobeNewswire, Walmart would start letting its customers pay with Litecoin, a relatively obscure instrument that isn’t among the top 10 cryptocurrencies. Company founder Charlie Lee described the report and tweet as an “unfortunate situation.” In other crypto news, Coinbase is looking to raise $1.5 billion from a bond sale and Cathie Wood’s Ark is letting one of its funds invest in Canadian Bitcoin ETFs.

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

Weekly Market Outlook: LHN Ltd, DBS, UOB, OCBC, Straits Times Index, Del Monte, Civmec, SG Weekly

Date: 14 Sep 2021

For more on Market Outlook

Updates summarised in 3 minutes

Phillip Research in 3 minutes: #29 Keppel Corporation; Initiation

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

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


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