DAILY MORNING NOTE | 24 August 2023

Singapore stocks gained 0.5 per cent or 14.3 points to 3,174.18 on Wednesday (Aug 23). Across the broader market, gainers beat losers 318 to 242 after one billion securities worth S$824.1 million changed hands. Singapore on Wednesday posted lower headline and core inflation rates in July, largely in line with economists’ estimates. Core inflation for the month stood at 3.8 per cent year on year, while headline inflation was 4.1 per cent year on year. Japan’s Nikkei 225 climbed 0.5 per cent, while the Hang Seng Index gained 0.3 per cent and South Korea’s Kospi fell 0.4 per cent.

Stocks ended higher on Wednesday as Wall Street awaited the latest quarterly figures from Nvidia, the high-flying chipmaker that’s been bolstered by the artificial intelligence craze on Wall Street. A decline in yields also buoyed sentiment among investors. The Dow Jones Industrial Average closed 184.15 points higher, or 0.5% at 34,472.98. The S&P 500 gained 1.1% to end the day at 4,436.01, its best daily performance since June 30. The tech-heavy Nasdaq Composite climbed 1.6% to 13,721.03, making for three straight days of gains.

Top gainers & losers





Local ride-hailing and deliveries platform Grab announced a set of very positive results during its 2Q23 earnings call. Revenue came in at US$567mn, a YoY increase of 77%, buoyed by growth across all segments even as total GMV growth remained fairly slack. Net losses continued to narrow, improving by 74% YoY to -US$148mn as incentives and corporate costs declined. The company now sees FY23 Adj. LBITDA of US$30mn-US$40mn, compared to its earlier forecast of US$195mn-US$235mn.

Comments: With its continued focus on optimising spending and improving margins, along with healthy monetisation, there now seems to be a much clearer path to bottom line profitability for Grab, which we believe could happen either towards to later part of 2024 or early part of 2025. Its recent acquisition of Transcab should also help to further reduce cost to serve and increase its driver supply in Singapore, hopefully improving affordability for customers.

Jonathan Woo
Senior Research Analyst

Food and beverage (F&B) owner and operator RE&S Holdings on Wednesday (Aug 23) posted a 65.3 per cent fall in net profit for its second half year ended Jun 30 to S$2.1 million, from S$6 million in the same period last year. Revenue in H2 grew 2.9 per cent to S$86.1 million, from S$83.6 million last year. Earnings per share declined to S$0.006 in the period, from S$0.017 in H2 2022. The group declared a final dividend of S$0.009 per share for H2 2023, bringing the total distribution for the year to S$0.018 per share. For the full year, net profit was down 19.1 per cent to S$7.6 million. Other operating income fell sharply to S$3.7 million, down 48.2 per cent from S$7.2 million a year ago. This was due to the absence of government and landlords’ support in relation to Covid-19. Full-year revenue, meanwhile, rose 12.4 per cent to S$174.1 million from S$154.8 million.

The manager of ESR-LOGOS REIT (E-LOG) has completed the divestment of three of the REIT’s non-core assets for a total of $182.9 million. E-LOG had previously announced its intention to divest seven of its non-core assets for approximately $337.0 million on June 23. On Aug 23, the divestments of 3 Pioneer Sector 3 for $95.0 million, 21 Changi North Way for $30.1 million and 30 Toh Guan Road for $57.8 million were completed. According to the REIT’s bourse filing on SGX, the completion of the divestment of the remaining assets is currently underway with relevant announcements to follow. Following the completion of the three divestments announced today, E-LOG’s portfolio consists of 77 properties, excluding 48 Pandan Road held through a joint venture, located across Singapore, Japan and Australia, as well as investments in three property funds in Australia.


Nvidia announced its 2Q24 results that beat its own guidance and consensus estimates. Revenue doubled YoY to US$13.5bn, beating its own guidance of US$11bn and analyst estimates of US$11.2bn. The strong revenue growth was mainly driven by the 171% YoY jump in its Data Centre segment revenue to US$10.32bn. Net income also jumped to US$6.19bn from just US$656mn in 2Q23. Adding to the strong results, Nvidia also issued another very strong guidance for 3Q24 where it is expecting an overall revenue of US$16bn, suggesting a 170% YoY growth that blows out analysts’ estimates of US$12.6bn. Given the strong demand for its products, the company’s CFO also said that Nvidia would not be immediately affected if the US government decides to pose additional export restrictions.

Maximilian Koeswoyo
Research Analyst

Oil prices dipped 1 per cent on Wednesday (Aug 23) as demand woes stemming from a build in US petrol stocks and weak manufacturing data globally outweighed optimism around a larger-than-expected drop in US crude stocks. Brent crude was down 82 US cents, or 0.98 per cent, at US$83.21 a barrel, bouncing off a 2.5 per cent decline earlier in the session. US West Texas Intermediate crude was down 75 US cents, or 0.9 per cent, at US$78.89. At the session low it was down 3.4 per cent. US petrol stocks climbed 1.5 million barrels last week, compared with analysts estimates for a 888,000 barrel drop. Meanwhile, US crude inventories fell by 6.1 million barrels in the week to Aug 18, the Energy Information Administration (EIA) said, helped by strong refining activity and high levels of exports. Analysts had expected a 2.8 million-barrel drop.

Cloud data analytics company Snowflake beat second-quarter revenue and profit estimates on Wednesday, boosted by rising data management and storage needs of businesses amid a surge in the use of generative artificial intelligence. The company’s revenue rose about 36% to $674 million for the quarter ended July 31, above analysts’ average estimate of $662.2 million, according to Refinitiv data. Excluding items, the second-quarter adjusted profit per share was 22 cents, compared with analysts’ average estimate of 10 cents. Shares of the company rose more than 3% in trading after the bell.

Autodesk stock climbed 5% after reporting second-quarter results. Autodesk earned $1.91 per share after adjustments on $1.35 billion in revenue, while analysts polled by Refinitiv predicted $1.73 per share in earnings and $1.32 billion in revenue. The company, whose AutoCAD software is used by construction, engineering and manufacturing companies, expects third-quarter revenue to be in the range of $1.38 billion to $1.40 billion, above estimates of $1.38 billion, according to Refinitiv data. It expects third-quarter earnings per share to be in the range of $1.97 to $2.03, above estimates of $1.92.

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


Singapore Telecommunications Ltd – Currency down, margins under

Recommendation: BUY (Upgraded); TP S$2.80, Last close: S$2.33; Analyst Paul Chew

– 1Q24 revenue and EBITDA were within expectations at both 23% of our FY24e forecast. The 9% decline in the Australian dollar and drop in Optus margins were the drag on earnings.

– Maiden disclosure of the Digital infraco (data centre, submarine cable, satellite), reflected an 11% YoY growth in EBITDA from higher pricing and satellite deployment services. Meanwhile, Bharti registered a 34% YoY growth in earnings to S$112mn.

– Optus remains the weakest spot for the group with EBIT declining 28% YoY in local currency terms to S$56mn. Despite the larger revenue and market size, Optus EBIT is only 23% of Singapore operations. We incorporated a modest decline in our FY24e revenue and EBITDA estimates by 2% to account for the weakness in the Australian dollar. The SOTP TP is lowered to S$2.80 (prev. S$2.84). We upgrade to BUY from ACCUMULATE due to recent price weakness. Valuations are attractive but any re-rating for Singtel will come from its S$6bn asset monetization efforts, better cost controls at Optus, mobile price restoration and broadband growth.

PSR Stocks Coverage



For more information, please visit:


Upcoming Webinars

Guest Presentation by Netlink NBN Trust

Date: 24 Aug 2023

Time: 12pm – 1pm

Register: https://tinyurl.com/2hpm7puv

Guest Presentation by Uni-Asia Group Limited

Date: 30 Aug 2023

Time: 12pm – 1pm

Register: https://tinyurl.com/y5nhcvzn

Guest Presentation by Sunpower Group Limited [NEW]

Date: 5 Sep 2023

Time: 12pm – 1pm

Register: https://tinyurl.com/33cua346

Guest Presentation by Elite Commercial REIT

Date: 8 Sept 2023

Time: 7pm – 8pm

Register: https://tinyurl.com/544xs5v6

Guest Presentation by TDCX

Date: 13 Sept 2023

Time: 12pm – 1pm

Register: https://tinyurl.com/4xwwexvx

Guest Presentation by CNMC Goldmine Holdings Limited [NEW]

Date: 15 Sept 2023

Time: 12pm – 1pm

Register: https://tinyurl.com/2xp3fy7c

Guest Presentation by PropNex Limited [NEW]

Date: 19 Sept 2023

Time: 12pm – 1pm

Register: https://tinyurl.com/4subthpr

Guest Presentation by ComfortDelGro Corporation Limited

Date: 20 Sept 2023

Time: 12pm – 1pm

Register: https://tinyurl.com/mr27xw2r

POEMS Podcast:

Research Videos

Weekly Market Outlook: Sea Ltd, SGX, Lendlease, CityDev, CLI, ComfortDelGro, SG Weekly & More!
Date: 21 August 2023
Click here for more on Market Outlook.
Sign up for our webinars here, and be among the first to receive economy and market updates.


Phillip Research in 3 minutes: #29 Keppel Corporation; Initiation
Click here for more on Phillip in 3 mins.

Follow our Socials

Facebook Social Icon Instagram Icon Twitter Social Icon Youtube Social Icon Linkedin Social Icon TikTok Social Icon Spotify Social Icon

Join our Singapore Equity Research Community on POEMS Mobile 3 App for the latest research reports, market updates, insights and more

Click to join!


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