Daily Morning Note – 22 November 2021


The Nasdaq finished at a fresh record Friday on a mixed day for US stocks as markets weighed the risk of economic weakness due to another Covid-19 wave. The tech-focused index notched its first close above 16,000 points, extending a trend in recent days of outperforming the broader market. The Nasdaq jumped 0.4 per cent to 16,057.44, ending at its second straight record and up 1.2 per cent for the week. The Dow Jones Industrial Average dropped 0.8 per cent to 35,601.98, while the broad-based S&P 500 shed 0.1 per cent to 4,697.96.

Singapore shares ended the week in the red as inflationary pressures and supply chain disruptions continue to weigh on sentiments. The Straits Times Index (STI) fell 0.14 per cent or 4.68 points to 3,232.34 on Friday (Nov 19). It was, however, a quiet trading week for the STI, said Singapore Exchange market strategist Geoff Howie. With a 0.8 per cent trading range, it was the STI’s second narrowest weekly range in the past five years, added Howie. Across the market, decliners outpaced advancers 239 to 222 with 1.69 billion shares worth S$1.02 billion changing hands



Cuscaden Peak, a group backed by Hotel Properties (HPL), property magnate Ong Beng Seng and 2 Temasek-linked units CLA and Mapletree, has secured most of the regulatory approvals needed for its takeover offer for Singapore Press Holdings (SPH), further cementing its advantage in a bidding contest for the media company’s property assets. The group on Sunday (Nov 21) said it received regulatory approvals from the Monetary Authority of Singapore (MAS) and the Info-Communications Media Development Authority (IMDA). It will still need to get clearance from the Foreign Investment Review Board (FIRB) of Australia. Under the terms of the latest offer on Nov 15, Cuscaden is willing to pay S$2.40 a share for SPH, comprising S$1.602 cash and 0.782 of an SPH Reit unit through a distribution-in-specie by SPH. Shareholders can also opt to take an all-cash option of S$2.36 per share. That is up from an earlier offer of S$2.10 a share in cash, to compete with Keppel’s initial bid of S$2.099 in cash and units of both Keppel Reit and SPH Reit. If successful, a deal would costs Cuscaden S$3.9 billion.

S-REITs have announced asset acquisitions exceeding S$9 billion in total purchase consideration over the past 10 months of 2021. In the month of October, most acquisitions were in logistics and grocery-anchored retail assets and include several maiden acquisitions or forays into new market segments. Acquisitions in October totalled S$765 million in purchase consideration and were made by CapitaLand China Trust, Ascendas Reit, Mapletree Logistics Trust, and United Hampshire US Reit.

Temasek-backed investment firm SeaTown is raising capital from external investors for the first time for its private credit fund and part of that has been done via security tokens. Tokenisation via digital securities exchange ADDX has helped shave the minimum investment ticket for individual accredited investors from US$5 million to US$20,000. This widens access to an asset class traditionally designed to serve institutional capital. The offering on the ADDX platform was completed last month, with investors subscribing to US$7 million in tokens. The tokens are now listed for secondary trading on the exchange. The close-ended, 4-year SeaTown Private Credit Fund is focused on extending private credit to companies in the Asia-Pacific.


The dollar rose on Friday as investors sought safe havens after Austria said that it would be the first country in Western Europe to reimpose a full lockdown amid surging Covid-19 infections and Germany said it could follow suit, sending the euro lower. The dollar index, which tracks the greenback against a basket of six major currencies, was up 0.489 per cent at 96.029, close to the 16-month high of 96.266 hit on Wednesday. For the week, the dollar was up around 1 per cent.

A US trade agency is taking a closer look at Sonos Inc’s claims that Alphabet Inc’s Google infringes patents for home audio systems and is considering whether to shut some Google smart home devices, phones and laptops out of the US market. The International Trade Commission said it would review part of a judge’s findings that Google infringed five Sonos patents and cleared product redesigns of any violation. Both companies asked the agency to review aspects of the judge’s findings that went against them. Specifically, the commission said it would review whether products accused of infringing two of the patents are “articles that infringe at the time of importation.” The commission said it won’t review remaining issues in the judge’s determination, and will consider a possible remedy, which could mean an import ban. A final decision is scheduled to be issued on Jan 6.

JPMorgan Chase & Co agreed to pay S$60 million to settle class-action litigation by investors who accused the largest US bank of intentionally manipulating prices of precious metals futures and options. The settlement disclosed on Friday stemmed from sprawling US government investigations into a form of illegal trading in precious metals and US Treasury markets, known as spoofing.

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

Hyphens Pharma International – Speedbump in Vietnam

Recommendation: Accumulate (Maintained); TP S$0.345, Last close: S$0.30;
Analyst Paul Chew

– Results were above expectations. 9M21 PATMI is at 88% of our FY21e forecast.

– Despite the pandemic lockdown in Vietnam, Hyphens managed to sustain earnings better than expected in 3Q21.

– The new acquisition of healthcare distributor Novem for S$16.3mn has the potential to raise EPS by 25% to 30%.

– Maintain ACCUMULATE unchanged DCF TP (WACC 7.2%) of S$0.345. We raise our FY21e by 6% due to the higher margins from the increased mix of proprietary products. Hyphens is undertaking a long-term investment and journey to build a leading portfolio of proprietary skin health products and brands across Asia.

POEMS Podcast: Let the Money Talk

Recent Podcasts:

Daily Morning Note – November 19, 2021

Daily Morning Note – November 18, 2021

Keppel Corp – SGX Company Insights Ep 42

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