DAILY MORNING NOTE | 23 January 2024

Trade of the Day

Keppel Ltd (SGX: BN4)

Analyst: Zane

(Current Price: S$6.84) – TECHNICAL SELL
Sell price: S$6.84 Stop loss: S$7.04 (-2.92%)
Take profit 1: S$6.49 (+5.12%) Take profit 2: S$6.18 (+9.65%)

Factsheets


Carvana Co. (NYSE: CVNA)

Analyst: Zane Aw

(Current Price: US$44.92) – TECHNICAL BUY
Buy price: US$44.92 Stop loss: US$41.00 (-8.73%)
Take profit 1: US$56.80 (+26.45%) Take profit 2: US$61.60 (+37.13%)

Factsheets


Trades Initiated in the past week

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Singapore stocks ended in the red on Monday (Jan 22) amid a mixed showing in regional bourses. The index shed 0.1 per cent or 3.17 points to close at 3,149.12. Across the broader market, decliners outnumbered advancers 328 to 224 after 1.4 billion securities worth S$910.1 million changed hands.

Wall Street stocks advanced on Monday with the Dow at a new high and the S&P 500 adding to last week’s record close, as investors await earnings reports for hints on major companies’ outlooks. The Dow Jones Industrial Average rose 0.4 per cent to 38,001.81, trading above the 38,000 mark for the first time. The broad-based S&P 500 added 0.2 per cent to 4,850.43, while the tech-heavy Nasdaq Composite Index gained 0.3 per cent to 15,360.29.

Top gainers & losers

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Events Of The Week

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SG

Semiconductor equipment maker AEM Holdings will adjust its inventory value and profit before tax in its results for the fourth quarter of 2023 after finding a shortfall in the group’s inventories, following an internal stocktaking exercise. The group has “found no evidence of fraud, illegal activity or physical loss of inventory”, and the shortfall is attributed to human error in transactions with the group’s enterprise resource planning system, it said on Monday (Jan 22). Excess inventory and profits are estimated at between S$18 million and S$25 million.

Sino Grandness Food Industry’s independent auditor has issued a disclaimer of opinion relating to the canned vegetables and fruits producer’s financial statements for the financial year ended Dec 31, 2020. The auditor, RT, flagged uncertainty over the group’s ability to continue as a going concern, as well as insufficient audit evidence to conduct an impairment assessment of its financial assets.

IREIT Global’s portfolio valuation as at Dec 31, 2023 stood at 899 million euros (S$1.3 billion) across its properties, based on the latest external valuation conducted by Savills. This was 2.6 per cent lower than the real estate investment trust’s portfolio value of €922.7 million as at Jun 30, 2023, and 5.4 per cent lower than the €950.5 million it reported the year before.

Frasers Centrepoint Trust reported a committed occupancy for its retail portfolio of 99.9 per cent for the first quarter ended Dec 31, 2023, on the back of stronger shopper traffic and improved tenant sales. In a business update on Monday (Jan 22), FCT’s manager said its retail occupancy has improved 1.5 per cent year on year (yoy) and up 0.2 per cent when compared to the previous quarter. Each of the retail malls under the trust has a committed occupancy of at least 99 per cent, it said.

Two adjacent units in luxury development The Ritz-Carlton Residences Singapore, Cairnhill were recently sold for S$16.5 million each or S$5,397 per square feet (psf) – making it the first time since June 2023 that prices in the prime residential market have crossed the S$5,000 psf mark. Based on caveats data from URA Realis, the two units are each 3,057 square feet (sq ft) in size and sit on the 33rd floor of the 58-unit freehold development in District 9. They were transacted on Jan 9 for a total of S$33 million.


US

Oil prices rose about 2 per cent on Monday on concerns over global energy supplies following a Ukrainian drone strike on Russia’s Novatek fuel terminal and as extreme cold weather continued to hamper US crude production.

Bitcoin slipped closer to dipping below the US$40,000 mark on Monday (Jan 22), as cryptocurrencies painted a sea of red despite a broader rally in traditional markets. The world’s largest virtual token declined as much as 3.4 per cent by 7.30 am in New York on Monday, hitting a low of US$40,352 – just shy of its lowest point of 2024 recorded on Friday. Other crypto assets were also in the red, with Ether down 4.1 per cent, and smaller tokens Solana’s SOL and Dogecoin down 3.9 per cent and 2.1 per cent, respectively.

Instagram and Facebook users in Europe will be offered more choices on how they use Meta Platforms’ services to comply with the European Union’s Digital Markets Act (DMA), the social media company said on Monday (Jan 22).

Indian broadcaster Zee Entertainment said on Monday (Jan 22) it will take legal action against Sony Group after the Japanese media company terminated a US$10 billion merger of their India operations. Sony ended the merger, which was announced two years ago, as they could not agree on some deal conditions, and has also sought US$90 million in termination fees from Zee.

US tech giant Apple has paid a Russian fine of 1.2 billion roubles (S$18 million), imposed over the company’s alleged abuse of its dominant market position concerning in-app payments, Russia’s Federal Antimonopoly Service (FAS) antitrust agency said on Monday (Jan 22).

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


RESEARCH REPORTS

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