DAILY MORNING NOTE | 22 November 2023

Trade of the Day

Yanlord Land Group Ltd (SGX: Z25)

Analyst: Zane Aw

(Current Price: S$0.595) – TECHNICAL BUY
Buy price: S$0.595 Stop loss: S$0.565 (-5.04%)
Take profit 1: S$0.675 (+13.45%) Take profit 2: S$0.715 (+20.17%)


Summary of Trades Initiated in Past Week

Factsheets


Singapore stocks slipped on Tuesday (Nov 21), with bank stocks among the top decliners, even as regional markets traded mixed.
Singtel led the decline, slipping 2.6 per cent to close at S$2.25. The local banks were also among the losers for the day, with UOB slipping 0.6 per cent and OCBC down 0.9 per cent. Shares of DBS fell 1.9 per cent to close at S$31.80, amid active trading, with some 8.4 million shares worth S$269.8 million changing hands. The weakness in the local banks comes amid a decline in US Treasury yields.

Wall Street’s main indexes opened lower on Tuesday (Nov 21) as investors awaited artificial intelligence chip leader Nvidia’s quarterly report and the release of minutes from the Federal Reserve’s recent meeting. The Dow Jones Industrial Average fell 46.20 points, or 0.13 per cent, at the open to 35,104.84. The S&P 500 opened lower by 8.61 points, or 0.19 per cent, at 4,538.77, while the Nasdaq Composite dropped 67.30 points, or 0.47 per cent, to 14,217.23 at the opening bell.

Top gainers & losers

Factsheets


EVENTS OF THE WEEK

Factsheets


SG

Iron ore futures rose for a second session on Tuesday (Nov 21), with the Singapore benchmark hitting an eight-month high, as sentiment was boosted by Beijing’s latest support for the property sector and concerns lingered over possible supply disruptions. The most-traded January iron ore on China’s Dalian Commodity Exchange (DCE) ended daytime trading 1.93 per cent higher at 978.5 yuan (S$183.50) a metric ton, the highest since Nov 15. The benchmark December iron ore on the Singapore Exchange rose 1.34 per cent to US$132.85 a ton, as of 0707 GMT, the highest since Mar 15.

Steel solutions provider BRC Asia posted a 2 per cent fall in net profit to S$49.5 million for its second half ended Sep 30, 2023, from S$50.4 million in the same period a year earlier. The company saw a weaker performance in FY2023 compared with record results in FY2022. But it had been on a steady recovery path over the last six months, with gradually normalising activity levels of local construction projects. Earnings per share stood at 18.05 Singapore cents for the half-year period, down from 18.36 cents the previous year. Revenue for H2 was largely flat at S$909.9 million, from S$905.9 million a year earlier.

Starhill Global REIT has announced that HSBC Institutional Trust Services Singapore, in its capacity as trustee of Starhill Global REIT, has entered into a facility agreement with DBS Bank for a five-year unsecured sustainability-linked multicurrency revolving credit facility of $50 million on Nov 21. The new agreement will replace its existing revolving credit facility with DBS Bank for the same amount expiring in June 2024. The facility is the first sustainability-linked facility granted to Starhill Global REIT and will be available for drawing from January next year.

iFAST Corporation has announced the launch of iFAST Global Hub.ai in Malaysia on Nov 21, an initiative part of the group’s three-year growth plan to become a prominent global player in digital banking, wealth management and pension administration solutions. As part of its strategic expansion, iFAST Global Hub.ai is set to invest over RM150 million ($43.2 million) and will occupy more than 63,000 sqft of office space over the next five years.


US

Hundreds of staff at OpenAI threatened to quit the leading artificial intelligence company on Monday and join Microsoft, deepening a crisis triggered by the shock sacking of CEO Sam Altman. In a fast-moving sequence of events, Altman, who was ousted by the board on Friday, has now been hired by Microsoft where he will take the lead in developing a new advanced AI research team. In a letter released to media, the vast majority of OpenAI’s 770-strong staff suggested they would follow Altman unless the board responsible for his departure resigned.

Gold prices rose on Tuesday, supported by a weaker US dollar as investors look forward to minutes from Federal Reserve’s latest meeting for more guidance on its interest rate outlook. Spot gold was up 0.3 per cent at US$1,983.81 per ounce, as of 0041 GMT. US gold futures also gained 0.3 per cent to US$1,985.70. The dollar languished near more than a 2-1/2-month low against its rivals, as investors expect US interest rates to fall next year and see that as a signal to sell the greenback in anticipation.

Propertyguru reported earnings of S$312,000 in the third quarter of its fiscal year ended Sep 30, reversing from a net loss of S$7.4 million a year prior. The New York Stock Exchange-listed online real estate portal on Tuesday (Nov 21) said its latest set of results brings the group out of its loss-making position with no income per share, as opposed to a per-share loss of S$0.05 in Q3 FY2022. Revenue for Q3 FY2023 grew 13.2 per cent to S$39 million, driven mainly by higher contributions from Singapore, which more than offset lower revenue in Vietnam.


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


RESEARCH REPORTS

Zixin Group Holdings – Plugged into China’s food security priority

Recommendation: Not rated Last Done: S$0.023

Target Price: n.a; Analyst: Peggy Mak


– Zixin Group China Factory Visit: A Chinese sweet potato-focused operator with an integrated value chain that covers seedling cultivation, fresh supply, production of snack food, functional food, and animal feed. The production base is located in Liancheng County, Fujian Province.

– Zixin is well-positioned to ride on China’s quest for food security. In view of this, the local authority is supporting the sweet potato plantation industry through allocating land, constructing premises, and offering favourable lease terms for cold storage warehousing and production of animal feed.

– Zixin has also been invited to participate in rural revitalization projects in the provinces of Henan and Hainan where it will replicate its working model in these regions.

PSR Stocks Coverage

Factsheets

Factsheets


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