Daily Morning Note – 16 Oct 2020

PHILLIP SUMMARY

Asian stocks looked set for a mixed start Friday as traders awaited news on U.S. stimulus negotiations amid a resurgence in coronavirus cases in some parts of the world. U.S. shares edged lower and the dollar climbed. Futures dipped in Japan and Australia, and rose in Hong Kong. S&P 500 contracts were steady after the gauge came off session lows as banks rebounded from a two-day selloff and energy shares rallied. House Speaker Nancy Pelosi told Democrats that a Covid-19 relief package won’t wait until January as she was scheduled to have another call with Treasury Secretary Steven Mnuchin, while President Donald Trump said he’d go over $1.8 trillion in stimulus. Small-cap shares pushed higher, with the Russell 2000 Index up 1.1%, while the Nasdaq underperformed. Elsewhere, Treasuries were steady, while crude oil ticked lower.

BREAKING NEWS

DEVELOPERS in Singapore sold 1,329 new private homes in September, 5.8 per cent more than the 1,256 units in August. It is the highest sales volume notched since July 2018’s 1,724, and marks the fifth consecutive month of increase in monthly sales since the “circuit breaker” in April 2020. The figure is also 4.6 per cent higher than the 1,270 units sold in September 2019. The latest sales mean 3,665 units were sold in Q3, more than double Q2’s 1,762, and 2.6 per cent higher than the 3,572 taken up in Q3 2019.

GENTING Cruise Lines is hiring over 100 Singaporeans as it restarts cruise services in Singapore, with positions open for all aspects of ship operations. In a media statement on Thursday, the cruise operator said it is looking to recruit staff to fill positions including marine officers, galley chefs, media technicians and hospitality staff. It hopes to tap ex-naval or maritime officers and crew as well as those from the hard-hit food and beverage sector, and the hotel and hospitality industry.

FRUIT and seafood distributor SunMoon Food Company on Thursday requested its trading halt be converted into a voluntary suspension. The mainboard-listed company said it needs more time to prepare an announcement to update its shareholders in relation to its parent’s voluntary bankruptcy reorganisation. SunMoon disclosed on Monday that three entities – Shanghai Yiguo E-Commerce, Shanghai Winchain Supply Chain Management and Shanghai Exfresh Logistic – had been placed under voluntary bankruptcy reorganisation under Chinese law on July 30.

GUOCOLAND has proposed to sell its subsidiaries in Vietnam for some 656.09 billion dong (S$38.3 million), after which the luxury property developer will no longer have business operations in the country. The mainboard-listed company on Wednesday evening said its wholly-owned subsidiary GuocoLand Vietnam (S) Pte Ltd (GLVS) is planning to sell the entire charter capital of GuocoLand Vietnam Company Limited (GVC) to Hang Vay Chi, Vuong Hoa and TT Investment Company. The parties have inked a sale and purchase agreement.

CAPITALAND’S wholly-owned lodging business unit, The Ascott Limited, has secured more than 2,100 new units across 12 properties in China in the last three months. Revenue from its operating properties in the country have also almost fully recovered to pre-Covid-19 levels, said Ascott in a press statement on Thursday. Outside of China, Ascott has also signed contracts for 10 more properties and over 1,600 new units in markets such as Austria and Indonesia. These are set to open between 2021 and 2024.

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

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