DAILY MORNING NOTE | 24 November 2023

Summary of Trades Initiated in Past Week

Factsheets


Singapore stocks closed lower on Thursday (Nov 23) amid mixed regional trading. Shares of Venture Corporation were the top decliner, after falling 1.9 per cent to close at S$12.80. The local banks also ended in the red. DBS and OCBC fell 0.3 per cent, while UOB shares closed 0.1 per cent lower. Meanwhile, DFI Retail Group was the top performer, with the shares climbing 1.8 per cent to close at US$2.29. Other top performers include Hongkong Land which rose 1.5 per cent, and Yangzijiang Shipbuilding, which was up 1.4 per cent. Across the broader market, gainers outnumbered losers 326 to 224, after 1.1 billion securities worth S$553.9 million changed hands. Elsewhere in the region, markets traded mixed ahead of the Thanksgiving holiday in the US. Key indices in Australia, Taiwan and Malaysia closed lower, slipping between 0.1 per cent and 0.6 per cent, but markets in South Korea and Hong Kong ended higher, following overnight gains on Wall Street.

US: Thanksgiving Holiday

Top gainers & losers

Factsheets


EVENTS OF THE WEEK

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SG

Cut-off yield on the latest tranche of six-month Singapore Treasury bills (T-bills) has risen to 3.8 per cent. This is up from the cut-off yield of 3.75 per cent in the previous six-month tranche. Demand for the T-bills slid slightly, with applications totalling S$13 billion for the S$6 billion on offer. This represents a bid-to-cover ratio of 2.17. In comparison, the previous tranche received a total of S$13.2 billion in applications for the S$5.7 billion on offer, which represents a bid-to-cover ratio of 2.31. T-bill yields hit a 30-year high of 4.4 per cent in December 2022, but have hovered mostly around the 3.7 per cent to 3.8 per cent range since March this year.

Singtel’s Optus has obtained four spectrum lots for A$33.5 million (S$29.4 million) in total, in the latest government spectrum auction. The lots amount to 20 MHz of mid-range 3.7 GHz spectrum across North New South Wales and South Queensland. They will be valid for 20 years, commencing in 2024 and expiring in 2044. Optus said that the new spectrum licences will enable it to offer improved 5G services to customers across Australia. It presently has 35 MHz holdings of 3.6 GHz spectrum in this area.

Singapore’s headline inflation for the month edged up to 4.7 per cent, higher than the 4.1 per cent recorded in September, data from the Monetary Authority of Singapore (MAS) and Ministry of Trade and Industry (MTI) showed on Thursday (Nov 23). Core inflation, which excludes accommodation and private transport, rose to 3.3 per cent. This was a tick higher than the 3 per cent recorded in the previous month, and above economists’ median estimate of 3.1 per cent. MTI and MAS attributed the higher core prices to higher inflation for services, and retail and other goods, as well as a rise in electricity and gas costs.

Entertainment company Vividthree Holdings has announced its signing of a memorandum of understanding (MOU) with Guangdong Sky City Culture and Entertainment, a Chinese arcade and entertainment brand headquartered in Guangdong China, to develop gaming arcade centres in Southeast Asian markets. The MOU outlines a strategic partnership for both companies to establish arcade businesses in the region, starting with Singapore. Sky City has over 13 years of experience developing, operating and promoting family entertainment concepts while Vividthree will leverage its expertise in digital media creation and production to enhance arcade gaming offerings, especially in the areas of virtual reality (VR) and augmented reality (AR) games, as well as globally recognised intellectual property (IP) management.


US

Oil prices dipped about 1 per cent on Thursday, extending losses on expectations that Opec+ might not deepen output cuts next year after the producer group postponed its policy meeting. Brent crude futures were down 68 cents, or about 0.8 per cent, at US$81.28 a barrel by 2024 GMT after falling as much as 4 per cent on Wednesday. US West Texas Intermediate crude slid 75 cents, or 1 per cent, to US$76.35 after dropping as much as 5 per cent in the previous session. Trading activity was muted because of the US Thanksgiving public holiday.

Gold prices edged higher on Thursday, hovering close to a key US$2,000 per ounce level, as an overall weaker dollar and lower US Treasury yields buoyed demand for bullion. Spot gold was up 0.1 per cent at US$1,992.59 per ounce, as of 0143 GMT, after hitting a three-week high of US$2,007.29 on Tuesday. US gold futures were steady at US$1,993.30. The dollar was down 0.1 per cent against its rivals after gains in the last two sessions and making gold less expensive for other currency holders. The benchmark US 10-year Treasury yields fell to a two-month low on Tuesday.

Apple saw a decline in the number of smartphones sold during China’s recent Singles Day shopping festival, lagging domestic rivals Huawei and Xiaomi which recorded robust increases. The number of Apple smartphones sold declined 4 per cent year on year during the two-week sales from Oct 30 to Nov 12. In comparison, the number of units sold by Huawei and Xiaomi grew 66 per cent and 28 per cent respectively year on year over the same period. The increases for Huawei and Xiaomi helped fuel a 5 per cent year-over-year rise in the overall number of Chinese smartphones sold during the promotion period.

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


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