DAILY MORNING NOTE | 18 April 2024
Trade of The Day
iFAST Corporation Ltd (SGX: AIY)
Analyst: Zane Aw
(Current Price: S$0.141) – TECHNICAL SELL
Sell price: S$6.51 Stop loss: S$6.75 (-3.69%)
Take profit 1: S$6.10 (+6.30%) Take profit 2: S$5.45 (+16.28%)
Trades Initiated in the past week
Singapore stocks ended Wednesday (Apr 17) at 3,154.69, up 9.93 points or 0.3 per cent, signalling that a knee-jerk reaction to a potential war in the Middle East may be coming to an end. Across the broader market, however, advancers only just edged out decliners 271 to 268 – an indication that sentiment remained weak.
The S&P 500 dropped for a fourth consecutive session on Wednesday, as Nvidia and other struggling technology names put downward pressure on the market. The broad index lost 0.58% to 5,022.21, while the technology-heavy Nasdaq Composite slid 1.15% to 15,683.37. The Dow Jones Industrial Average fell by 45.66 points, or 0.12%, to 37,753.31, despite rising nearly 238 points at its high of the day.
Top gainers & losers
Events Of The Week
SG
Cordlife Group is proposing to raise S$8.2 million by issuing a total of 51.2 million new ordinary shares at S$0.16 apiece. On Wednesday (Apr 17), the cord-blood bank said it entered into two separate subscription agreements with Charming Global Enterprises (CGE) and Darren Ng, a high-net-worth individual based in Singapore. CGE is owned by Jiao Shuge, who co-founded Beijing-based private equity and venture capital firm CDH Investments.
Keppel Pacific Oak US Reit (Kore) posted a distributable income of US$11.9 million for its first quarter ended Mar 31, down 8.8 per cent from US$13.1 million the previous year. The fall was mainly due to increased financing costs resulting from higher interest rates, said the manager of the office-focused real estate investment trust (Reit) in a business update on Wednesday (Apr 17). Gross revenue for Q1 stood at US$37.1 million, unchanged from the year before. Net property income for the quarter declined 0.8 per cent to US$21 million, from US$21.2 previously.
iWOW Technology has announced that its wholly-owned subsidiary, Roots Communications, has secured a contract worth up to approximately $10.7 million on April 17. The mobile engineering works contract, awarded by a major telecommunications service provider in Singapore, is in relation to the provision of engineering works for the expansion, safety enhancement, recovery works, relocation and retrofitting of radio base stations or other mobile network site infrastructures in Singapore. The contract is expected to be fulfilled over the next 36 months, and brings the group’s current order book to approximately $93.5 million.
US
Abbott Laboratories beat Wall Street estimates for quarterly profit on Wednesday (Apr 17) and raised the lower end of its forecast, as robust demand for medical procedures boosted sales of its devices, including its glucose-monitoring products. The company recorded medical device sales of US$4.45 billion, of which its glucose monitor, FreeStyle Libre, generated US$1.5 billion. Analysts, on average, had estimated Abbott’s medical device sales at US$4.30 billion, according to LSEG data. The company recorded US$9.96 billion in sales, compared to analysts’ estimate of US$9.88 billion. On an adjusted basis, it reported first-quarter profit of 98 cents per share, compared with analysts’ estimate of 95 cents per share, according to LSEG data.
ASML, which supplies chip-making machines to the semiconductor industry, on Wednesday (Apr 17) reported a drop in net profits and orders amid a high-tech trade spat between China and the West. Net profits came in at 1.2 billion euros (S$1.7 billion) in the first quarter of the year, compared to two billion euros in profit the firm reported in the fourth quarter of last year. Bookings slumped to 3.6 billion euros, a sharp decline from the 9.2 billion euros reported in the fourth quarter. Overall sales in the first quarter came in at 5.3 billion euros, lower than the 7.2 billion euros from the fourth quarter but in the range the company had forecast.
Oil prices slipped more than US$1 on Wednesday as US commercial inventories rose, while weaker economic data from China and dimmed prospects of interest rate cuts stoked worries about global demand. Brent futures for June were down US$1.01, or 1.32, to US$89.01 a barrel at 11.19 am EST, while US crude futures for May were down 88 cents, or 1 per cent, at US$84.48 a barrel. Both were on track for their biggest fall since March 20. Oil prices have softened this week as economic headwinds curb gains from geopolitical tensions, with markets eyeing how Israel might respond to Iran’s weekend attack.
Source: SGX Masnet, Bloomberg, Channel NewsAsia, Reuters, CNBC, WSJ, The Business Times, PSR
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