DAILY MORNING NOTE | 24 July 2024

Trade of The Day

COSCO Shipping International (Singapore) Co Ltd (SGX: F83)

Analyst: Zane Aw

(Current Price: S$0.149) –

Singapore Technical Highlights

Trade Initiated in Past Week

Singapore stocks ended higher on Tuesday (Jul 23) as the Republic reported inflation figures that slowed more than expected in June. The index rose 0.7 per cent or 23.9 points to 3,461.16. Across the broader market, gainers outnumbered losers 288 to 261, after 989.7 million securities worth S$909.7 million changed hands.

Street stocks finished a choppy session slightly lower on Tuesday as investors assessed mixed earnings reports while monitoring the fast-changing US presidential contest. The Dow Jones Industrial Average ended down 0.1 per cent at 40,358.09. The broad-based S&P 500 declined 0.2 per cent to 5,555.71, while the tech-rich Nasdaq Composite Index dipped 0.1 per cent to 17,997.35.

Singapore Technical Highlights

Top gainers & losers

Events Of The Week

SG

June’s headline inflation was 2.4 per cent – lower than May’s 3.1 per cent and the median forecast of 2.7 per cent in a Bloomberg poll of private-sector economists – due to a decline in private transport costs and lower core inflation.

Registrations of electric vehicles (EVs) in Singapore for the first six months of 2024 have more than trebled, compared with the previous corresponding period. From January to June this year, 6,019 EVs were registered, making up 32.4 per cent of total registrations, up from 1,892 in H1 2023.

Hutchison Port Holdings (HPH) Trust on Tuesday (Jul 23) reported a 66.6 per cent increase in earnings for the first half of 2024 to HK$158.1 million (S$27.2 million), from HK$94.9 million in H1 2023.Despite the increase in earnings, distribution per unit (DPU) for the period fell to HK$0.05, from HK$0.055 in H1 2023, on a lower distribution amount.

Sabana Industrial Real Estate Investment Trust posted a distribution per unit (DPU) of S$0.0134 for the first half of its fiscal year ended Jun 30, down 16.8 per cent from S$0.0161 in the corresponding year-ago period. Gross revenue for H1 slipped 0.2 per cent on year to S$55.2 million from S$55.3 million, even as its overall portfolio occupancy slid to 78.8 per cent, from 93.9 per cent a year ago.

The entire 31st floor of Suntec City Tower 1 has been put up for sale via a private treaty, with a guide price of S$41.8 million. This translates to around S$3,403 per square foot (psf) based on the total strata area of 12,282 square feet (sq ft), said exclusive marketing agent PropNex on Tuesday (Jul 23).

Pfizer on Tuesday (Jul 23) opened a S$1 billion extension in Tuas to produce active pharmaceutical ingredients (API) for its oncology, pain and antibiotic medicines. Over 250 skilled jobs are set to be created by 2026 at the Tuas II facility that spans 429,000 square feet. So far, 230 roles have already been filled, with locals comprising about 80 per cent.

US

United Parcel Service missed Wall Street estimates for second-quarter earnings on Tuesday (Jul 23), hurt by subdued package delivery demand and higher costs from its Teamsters labour contract.S hares of the delivery company, seen as a bellwether for the global economy, were down 8 per cent in premarket trading, while shares of rival FedEx fell about 2 per cent.

Coca-Cola raised its annual organic sales and profit forecasts on Tuesday (Jul 23), signalling consumers are willing to spend more for the beverage giant’s higher-priced sodas, energy drinks and juices mainly in international markets. The company’s shares rose nearly 1 per cent in premarket trading as the company also posted a surprise increase in quarterly revenue.

General Motors reported higher profits on Tuesday (Jul 23) behind another round of strong North American auto sales that compensated for continued weakness in China. The big US automaker’s second-quarter results demonstrated a continued lift from robust pricing in its home market, thanks to truck and sport utility vehicles that have benefited from persistently healthy demand.

More plane orders flowed in at the Farnborough Airshow on Tuesday (Jul 23) despite supply chain pressures on jetmakers and complaints from airlines about delivery delays. Boeing announced deals with Qatar Airways and Macquarie Airfinance, while Airbus secured orders from Japan Airlines and Virgin Atlantic – although much of the business had already been flagged.

The biggest producer of batteries for electric vehicles in Europe may branch out to build energy storage facilities for households harnessing renewable energy, amid weak demand for e-cars. The Polish manufacturing unit of LG Energy Solution already indicated that its sales revenue from the east European country would likely drop by around a third this year to 26.5 billion zloty (S$9.03 billion).

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

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