Daily Morning Note – 23 September 2021


Wall Street stocks advanced Wednesday following reassurances from China’s Evergrande over its finances, while the Federal Reserve kept interest rates low, as expected. The embattled Chinese property titan said it had agreed to a deal with domestic bondholders that should allow it to avoid missing one of its interest payments, somewhat mollifying a major source of market angst this week. Worries about the fallout from an Evergrande failure had slammed stocks on Monday. Later, the Fed kept interest rates low, while adding that it may nonetheless “soon” be ready to begin removing stimulus it provided during the pandemic. The Dow Jones Industrial Average finished up one percent at 34,258.32.


SG News

Aspen (Group) Holdings it a two-month high in early trading on Wednesday, prompting a query from the Singapore Exchange (SGX) about the “unusual price and volume movements”. In its response to SGX’s query during the midday trading break, Aspen said it is not aware of any information not previously announced concerning the company, its subsidiaries or associates which might explain the trading. It also confirmed its compliance with listing rules.

Keppel Corp has priced 8 billion yen (S$98.7 million) in notes due 2027 at 0.99 percent per annum, it said on Wednesday evening. The notes are expected to be issued on or around Sept 29, under the conglomerate’s US$5 billion multi-currency medium-term note programme. Net proceeds from the issue of the notes will be used for general corporate and working capital purposes, including the refinancing of existing debts.

Temasek Holdings has made a mandatory conditional general cash offer to acquire all the issued and paid-up ordinary shares in Sembcorp Marine (Sembmarine) after Temasek’s stake in the latter was raised to 46.6 percent from 42.2 percent due to its rights issue. The offer is in line with Rule 14.1 of the Take-over Code, where any entity controlling 30 to 50 percent of a company must make a mandatory general offer if it raises its interest by more than 1 percent within a period of six months.

Clearbridge Health on Wednesday said its second batch of Sinopharm Covid-19 vaccines have arrived in Singapore. The vaccines will be available at Medic Surgical & Laser Clinic, operated by the group’s subsidiary, the integrated healthcare group said in a bourse filing. The group’s first batch of Sinopharm vaccines had arrived in Singapore on Aug 28 and were fully allocated in early September.

Starhub on Wednesday announced plans to acquire a majority 50.1 percent stake in MyRepublic’s broadband business in Singapore for an initial consideration of S$70.8 million, subject to several adjustments. Deferred consideration of S$92 million will be payable on the condition that financial performance metrics be met. That would take StarHub’s investment for its stake in the jointly owned entity – MyRepublic Broadband – to S$162.8 million. The acquisition will be funded using StarHub’s internal cash resources.

US News

Sales of US existing homes fell in August for the first time in three months as the ongoing supply shortage and high prices kept buyers away from the market, according to industry data released on Wednesday. Sales dropped two percent last month to an annual rate of 5.88 million, seasonally adjusted, the National Association of Realtors (NAR) reported, which was slightly higher than analysts forecast.

Facebook said on Wednesday that Apple’s iPhone privacy changes, which allow users to block tracking, significantly affected its advertising revenues because fewer data could be collected. The move by Apple earlier this year has sparked a rift with Facebook and other tech rivals and could have major implications for data privacy and the mobile ecosystem. Facebook had already indicated that the features to boost user data protection in the update launched in late April would hit its ad revenues, but it offered more detail in a blog post.

The Food and Drug Administration plans to authorize a third booster dose of the Pfizer Inc-BioNTech SE vaccine imminently, according to a person familiar with the matter. The expected emergency clearance will be for people 65 and older, those most susceptible to severe disease, and people whose jobs put them at risk, the person said. An announcement is planned for Wednesday, the person said. The emergency clearance, which is in line with a recommendation from FDA advisers, is narrower than the full approval Pfizer had sought.

The chairman of the US Federal Reserve called on lawmakers to raise the nation’s borrowing limit urgently on Wednesday, warning that failure to pay government debts would do “severe damage” to the economy. “It’s just very important that the debt ceiling be raised in a timely fashion so the United States can pay its bills when it comes due,” Jerome Powell said as the central bank concluded its September meeting. Failure to pay, he added, is “just not something we can contemplate.”

Rising Covid-19 cases have slowed the US economy’s recovery, but the Federal Reserve on Wednesday said it may nonetheless “soon” be time to begin removing the stimulus it provided during the pandemic. The closely-watched announcement left policy unchanged for now, but new forecasts from central bankers show they expect the first interest rate increase next year. That would take the benchmark lending rate above zero in the world’s dominant economy for the first time since the start of the pandemic.

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

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


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