Daily Morning Note – 21 September 2021

PHILLIP SUMMARY

Major US stock indices finished with heavy losses on Monday, as fears of a debt crisis in China and a credit default in the United States sparked a selloff. The benchmark Dow Jones Industrial Average was 1.8 per cent lower at the close at 33,970.47. The broad-based S&P 500 lost 1.7 per cent to finish at 4,357.73. The tech-rich Nasdaq Composite Index lost 2.2 per cent to 14,713.90.
The day had started ugly, with Wall Street indices opening deep in the red as traders fretted over the fate of Evergrande, one of China’s biggest developers that is awash in debt of more than US$300 billion and teetering on collapse. Their plunge continued throughout the day, with all indices losing at least two per cent, though the S&P 500 and Dow managed to reign in some of their losses. September is known for rocky trading, but the situation was made worse by the ongoing impasse in Congress over raising the US debt limit.


BREAKING NEWS

SG News

Jumbo Group announced that it has officially opened its second Jumbo Seafood outlet in Beijing at the Universal Studios’ Beijing resort in a regulatory filing on Monday evening. It is also the group’s eighth Jumbo Seafood restaurant in China and its 17th across Asia. The newly-opened outlet is located at the Universal CityWalk complex and occupies an area of approximately 1,026 square metres, with an indoor seating capacity of 229 and an outdoor seating capacity of 36. The restaurant also features two private rooms that can seat up to 22 patrons.

The ongoing shake-up in China’s real estate sector levels the playing field and could throw up interesting opportunities for foreign property players such as CapitaLand, said group chief executive of CapitaLandInvest Lee Chee Koon. On Monday, CLI made its trading debut on the Singapore Exchange as one of the world’s largest listed real estate investment managers (REIMs) after property giant CapitaLand carved up its business into two separate entities – namely, CLI and privatised property development arm, CapitaLand Development (CLD).

Singapore Kitchen Equipment announced on Monday that its chairman and independent non-executive director Tan Bee Kiew has resigned due to medical reasons. Madam Tan is also stepping down from her role as chairman of the audit committee and member of the nominating committee and remuneration committee with effect from Monday. Based on its enquiries, the company’s sponsor, CIMB Bank Berhad, Singapore Branch is satisfied that there are no other material reasons for Ms Tan’s resignation.

Property and hospitality group Roxy-Pacific Holdings has received a pre-conditional voluntary general offer from TKL & Family for all the issued ordinary shares in the company. The offeror is the bid vehicle of a consortium formed by 11 individuals, including the chairman and chief executive of Roxy-Pacific, Teo Hong Lim. The privatisation will allow shareholders to realise their investment at an attractive price and compelling premium amid low trading liquidity, as well as exit their investment as the company is facing a challenging macro and operating environment driven by the Covid-19 pandemic, Roxy-Pacific said in a bourse filing on Monday.

Insurers in Singapore have beaten banks in the quality customer experience (CX) for the first time since 2018 – the year Forrester’s survey on the topic started. The research and advisory firm on Monday said it surveyed more than 2,000 Singapore consumers across 11 brands (six insurers and five banks) to form its Singapore CX Index benchmarks. The survey found that overall CX quality in Singapore improved by three points to 63.3 from 60.3 on a 100-point scale, as every insurance brand improved their CX scores.


US News

Gold prices inched lower on Monday, pressured by a firmer dollar, while investors awaited guidance from the US Federal Reserve on when it is likely to start withdrawing its bond-buying programme. Spot gold dipped 0.1 per cent to US$1,752.66 per ounce by 12.50am GMT, while US gold futures edged up 0.1 per cent to US$1,753.80. The dollar index hit a near one-month high, denting gold’s appeal for holders of other currencies. The Fed is expected to open the door to reducing its monthly bond purchases when it meets on Sept 21-22, while tying any actual change to US job growth in September and beyond.

Oil prices fell 2 per cent on Monday as investors grew more risk-averse, which hurt stock markets and boosted the US dollar, making oil more expensive for holders of other currencies Brent crude fell US$1.42, or 1.9 per cent, to settle at US$73.92 a barrel after sinking to a session low of US$73.52. US West Texas Intermediate (WTI) declined US$1.68, or 2.3 per cent, to end at US$70.29 after falling to as low as US$69.86.

Royal Dutch Shell said on Monday it would sell its Permian Basin assets to ConocoPhillips for US$9.5 billion in cash, an exit from the largest US oilfield for the energy major shifting its focus to the renewable energy transition. For ConocoPhillips, it is the second sizable acquisition in a year in the heart of the US shale industry, as American and European producers diverge in whether to focus on hydrocarbons going forward.

Cryptocurrency prices slumped as a broad selloff sparked by worries about contagion from China Evergrande Group swept through global markets. Bitcoin dropped 5.4 per cent to US$45,025 just before 10 am in London (just before 6pm Singapore time), reaching the lowest level in a week. Other digital assets also retreated, with Bitcoin Cash and Ether all declining.

The United States’ decision to lift restrictions on incoming travellers vaccinated against Covid-19 was met with a sigh of a relief by the global airline sector, which has been dealt a body blow by the pandemic. With transatlantic flights traditionally among the most lucrative for Europe’s biggest airlines, the Monday announcement was “formidable news” for a sector that has haemorrhaged tens of billions of euros over the past 18 months, Air France-KLM chief Benjamin Smith told AFP.


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

HK Reports – Read up on our Hong Kong reports here

Webinar Of The Week

Weekly Market Outlook: Sembcorp Marine, Alliance Healthcare, AEM, UMS, CDL, HRnetGroup…..

Date: 20 September 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