Daily Morning Note – 18 May 2021
Wall Street stocks ended lower on Monday (May 17), weighed down by tech shares as signs of growing inflation worried investors about the potential for tighter monetary policy. Of the 11 major S&P sectors that declined, technology and consumer were among the biggest losers. The S&P 500 scored its biggest one-day jump in more than a month on Friday as investors picked up beaten-down stocks following a pullback earlier in the week on worries about inflation and a sooner-than-expected tightening by the US Federal Reserve.
Walmart Inc, home improvement chain Home Depot Inc and department store operator Macy’s Inc are set to report earnings on Tuesday, with Target Corp Ralph Lauren and TJX Cos due later in the week.
JUMBO Group announced on Monday that it will be opening two new food and beverage (F&B) outlets for its brands Tsui Wah and Kok Kee Wanton Noodle, even in the midst of Singapore’s current Covid-19 restrictions where dining-in is not allowed so as to stem the growing number of Covid-19 community cases. The new Tsui Wah outlet is located at Jem in Jurong East, and occupies a total floor area of approximately 3,000 square feet. The outlet has a maximum seating capacity of 134 seats, which will be available for indoor dining when the heightened Covid-19 measures are relaxed. Currently, this new outlet will provide delivery and takeaway services for all items on the menu.
Dasin Retail Trust’s revenue for its full portfolio for the first fiscal quarter of 2021 ended March rose 87.4 per cent on a year-on-year basis despite the impact of the Covid-19 pandemic, the trustee-manager said in a business update on Monday. The trust’s topline figure is based on revenue in yuan, and excluded rental income recognised on a straight-line basis over the lease term. Revenue from four of the trust’s retail malls – namely Shiqi Metro Mall, Xiaolan Metro Mall, Ocean Metro Mall and Dasin E-Colour – had also recovered to 94 per cent of pre-pandemic levels in Q1 FY2021.
Mequity Hills, an indirect associate of property player Roxy-Pacific Holdings, has entered into an agreement to acquire a 999-year leasehold residential site for S$23 million. The site, which is located at 11 Institution Hill, has an estimated total land area of 5,539 sq ft and a plot ratio of 2.8 under the 2019 Master Plan for residential development, said Roxy-Pacific in a bourse filing after market close on Monday. The acquisition will be financed by a combination of internal funding and bank borrowings, and is not expected to have a material impact on the group’s consolidated earnings and net tangible assets per share for the current financial year ending Dec 31, 2021.
Securities Investors Association (Singapore) or Sias has asked Sakae Holdings’ internal audit function to be performed by independent professional service providers reporting directly to the association’s audit committee (AC). In a press statement on Monday, Sias highlighted that this was among the recommendations by KPMG Services, Deloitte and its appointed external consultant. It however noted that not all the recommendations – in the areas of payments processing, internal accounting control, employee retention and training, and new business and new projects – have been implemented by Sakae.
Microsoft conducted an investigation into co-founder Bill Gates’s involvement with an employee almost two decades ago after it was informed in 2019 of his attempt to start a romantic relationship with that person.
United Airlines, Delta Air Lines and American Airlines are adding flights to Italy with protocols for coronavirus testing as the country opens to leisure travelers from the United States for the first time in more than a year. On Sunday, the Italian government eased a number of Covid-19 travel restrictions and requirements as it looks to boost summer tourism, including scrapping a mandatory quarantine for visitors from certain countries as long as they test negative for Covid-19.
President Joe Biden and his wife Jill earned just over US$600,000 last year, their tax return showed on Monday, though the real news was that the document got released at all. Presidents have traditionally made public their annual tax returns, which detail sources of income and taxes paid, in the name of transparency.
US dollar held above recent lows on Monday as new Covid-19 restrictions in Asia and mixed data in China encouraged investors to stick with safer currencies, while a pullback in commodity prices whacked the Australian and New Zealand dollars.
AT&T Inc agreed to spin off its media operations in a deal with Discovery Inc that will create a new entertainment company, merging assets ranging from CNN and HBO to HGTV and the Food Network. AT&T will receive US$43 billion in cash, debt securities and debt retention, with AT&T shareholders getting stock representing 71 per cent of the new company, the companies said in a statement on Monday (May 17). Discovery chief executive officer David Zaslav is to lead the new entity.
Source: SGX Masnet, The Business Times, Bloomberg, Channel NewsAsia, Reuters, PSR
CapitaLand Integrated Commercial Trust
Analyst: Chua Wei Ren
Recommended Action: Technical BUY
CapitaLand Integrated Commercial Trust (SGX: C38U) has formed a 5-wave corrective rising wedge formation and it is in response to the overall downside trend. However, short-term technical indicate that the final upside of wave ((E)) is forming
Buy spot: 2.03 Stop loss: 1.90 Take profit 1: 2.27 Take profit 2: 2.47
Thai Beverage PCL
Analyst: Chua Wei Ren
Recommended Action: Technical BUY
ThaiBev (SGX: Y92) downside correction is coming to an end based on the short-term technical
Buy spot: 0.695 Stop loss: 0.6130 Take profit 1: 0.775 Take profit 2: 0.825
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Date: 18 May 2021
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