Daily Morning Note – 22 January 2021

PHILLIP SUMMARY

The S&P 500 and Nasdaq closed at record highs on Thursday, propelled by optimism about more pandemic relief under the Biden administration to support the economy after data showed a tepid labour market recovery. The Dow was also poised for a record until falling into negative territory in the final minutes of trading. The number of Americans filing new applications for unemployment benefits dipped to 900,000 last week, but still remained stubbornly high as the Covid-19 pandemic tears through the nation, raising the risk that the economy will shed jobs for a second straight month in January. But other data showed the housing and manufacturing sectors as areas of strength to help buttress the economy.

BREAKING NEWS

THE manager of Frasers Centrepoint Trust (FCT) said on Thursday that its performance for the final three months of 2020 remained resilient, with retail portfolio occupancy stable at 96.4 per cent.

In an exchange filing, it said total tenants’ sales remained stable near pre-pandemic levels, falling 1.3 per cent year on year in December. At the peak of the pandemic in May, total tenant sales had fallen 57.1 per cent year on year.

CITY Developments Limited (CDL) is expecting to make provisions for a material impairment loss on its investment in Sincere Property, given the “ongoing unprecedented challenges” facing China’s real estate market, the mainboard-listed company said on Thursday.

This is based on a review by CDL’s appointed external financial advisor Deloitte, which was asked to evaluate its 51-per-cent joint venture equity investment in Sincere Property, the property developer said in a profit guidance for the full year ended Dec 31, 2020.

PENGUIN International on Thursday said a consortium comprising its executive chairman, managing director and a Dymon Asia fund intends to take the company private at S$0.65 per share.

The offer price represents a premium of 30 per cent over the last transacted price per share of S$0.50 on Dec 18, 2020 – the day Penguin announced a possible transaction involving its shares, it said in a bourse filing.

SOILBUILD Business Space Reit on Thursday posted a fourth-quarter distribution per unit (DPU) of 1.194 Singapore cents, up 29.1 per cent from 0.925 cent a year ago.

Roy Teo, chief executive officer of the Reit manager said that the Q4 DPU is “not indicative of the Reit’s future performance” as it includes two quarters of contribution from its Australia portfolio.

FRASERS Property announced on Thursday that its subsidiary is looking to sell its stake in Beijing Fraser Suites Real Estate Management for 1.6 billion yuan (S$327.5 million).

Its subsidiary Excellent Esteem has entered into a sale and purchase agreement with a joint venture (JV) company established by Tishman Speyer RMB Funds and Shanghai Dowell Trading, to dispose its entire shareholding interest in Beijing Fraser Suites.

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

TECHNICAL REPORTS

Propnex Ltd

Analyst: Chua Wei Ren

Recommended Action: Technical BUY

Propnex Ltd (SGX: OYY) upside remain strong and the technical indicate further upside.

>> Read more Technical reports

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