Daily Morning Note – 19 January 2021

PHILLIP SUMMARY

Asian equities looked set for modest gains Tuesday as investors awaited President Donald Trump’s last full day in office and mulled stimulus plans from President-elect Joe Biden. The dollar pared an earlier advance. Futures pointed higher in Japan, Hong Kong and Australia. S&P 500 contracts fluctuated with U.S. markets closed for the Martin Luther King holiday Monday. Treasury futures were little changed. Investors will watch out for comments from Treasury Secretary nominee Janet Yellen, who has a Senate confirmation hearing Tuesday. Elsewhere, oil edged lower, gold climbed and Bitcoin fluctuated around the $36,000 level.

BREAKING NEWS

A subsidiary of Nutryfarm International is selling 180 containers of fresh durians to a China-based company for RMB117 million (S$24 million). The subsidiary, Global Agricapital Holdings, has entered into a binding import-purchase agreement with Shanghai Yuqu Trading Co, said Nutryfarm in a bourse filing on Monday. Yuqu principally engages in the businesses of import, trading and distribution fruits and vegetables.

New Silkroutes Group has inked an agreement with Huawei International to develop an artificial intelligence (AI) platform that can be used in genomics-driven healthcare, the mainboard-listed investment holding company said on Monday. Under a memorandum of understanding, New Silkroutes and Huawei will extensively explore a collaboration to use AI to establish “breakthrough analyses” of genomic data and develop predictive models for diagnoses, therapeutics and prognoses in oncology and genomics, New Silkroutes said in an exchange filing.

Catalist-listed nickel-ore producer Silkroad Nickel has entered into an exclusive term sheet with lithium-compound producer Ganfeng Lithium to tap the growing electric vehicle (EV) industry. In a bourse filing on Monday, the firm said it will stand to benefit from the booming EV trends around the region by building a strong and synergistic partnership with Ganfeng Lithium.

BRC Asia on Monday announced that it has proposed to place up to 10 million shares at S$1.42 apiece to raise a total sum of about S$13.7 million. The placement price represents a discount of about 9.4 per cent to the volume-weighted average price of S$1.5680 for trades done on the Singapore Exchange on Jan 13, 2021. BRC Asia said in its regulatory update that it decided to undertake the placement to “increase resources available to the company”. The net proceeds of around S$13.7 million from the placement will further strengthen and supplement the group’s financial position and capital base, it said.

Oil prices fell slightly on Monday as a stronger dollar, fears over soaring Covid-19 cases around the world and the slow pace of vaccination against the coronavirus outweighed a better-than-expected quarterly rebound for China’s economy. Brent crude was down 23 cents, or 0.4 per cent, at US$54.87 per barrel at 1720 GMT, and West Texas Intermediate US crude fell 19 cents, or 0.4 per cent, to US$52.17.

Grab is reportedly mulling an Initial Public Offering (IPO) in the US this year , in an exercise that could raise at least US$2 billion. It joins a handful of other prominent regional startups aiming for the public markets. Most recently valued at a reported US$14 billion, Grab is present in eight South-east Asian markets, with verticals including ride-hailing, food delivery and financial services under Grab Financial Group. The firm also clinched a full digital banking licence in Singapore in partnership with Singtel.

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

TECHNICAL REPORTS

Mapletree North Asia Commercial Trust

Analyst: Chua Wei Ren

Recommended Action: Technical BUY

Mapletree North Asia Commercial Trust (SGX: RW0U) recovery remain weak after a rebound on March 2020. Despite the trust broken out of the rising wedge in June and July period, Mapletree NAC managed to stay higher each time above the major support zone at $0.793-$0.825.

>> Read more Technical reports

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