Daily Morning Note – 18 May 2021

PHILLIP SUMMARY

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.


BREAKING NEWS

SG News

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.


US News

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

TECHNICAL PULSE

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

Read more technical reports

HK Reports – Read up on our Hong Kong reports here

Webinar Of The Week

Market Outlook: Weekly Market Outlook: Manulife US REIT, CapitaLand, IREIT, BRC, PropNex, UG Healthcare, NetLink NBN

Date: 18 May 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





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