Daily Morning Note – 25 January 2022

Welcome to our Daily Morning Note from our Research team!


Asian stocks looked set for a choppy start Tuesday after U.S. shares wiped out a 4% rout to close higher in a wild session roiled by concerns over Federal Reserve policy tightening and geopolitical tension.

Futures for Japan, Australia and Hong Kong pointed lower earlier. Dip buyers left the S&P 500 and Nasdaq 100 in the green amid high volumes, a breathtaking turnaround of a U.S. selloff that at one point rivaled any of the last two years.

Treasuries were mixed and the yield curve steepened. An auction of two-year notes attracted the strongest demand since February 2020. Oil slid in New York.

The prospect of a Fed interest-rate hiking cycle and balance-sheet reduction to tackle inflation is rattling markets. Escalating U.S.-Russia tension over Ukraine has also encouraged demand for havens. A gauge of the dollar rose.

Stocks to watch: Nordic Group



Mainboard-listed Nordic Group on Monday (Jan 24) said that its offer for engineering specialist Starburst Holdings has turned unconditional. In a filing to the Singapore Exchange, Nordic said that the total shares owned, controlled or agreed to be acquired by its wholly-owned unit Nordic Flow Control – which made a voluntary conditional offer for Starburst last November – and its concert parties constituted about 69.7 per cent of the total issued shares of the company as at 6 pm on Monday. Phillip Securities, which is acting as the financial adviser to Nordic Flow Control, said the offeror has received valid acceptances of some 173.1 million shares, which represents approximately 69.7 per cent of the total number of issued shares of the company.

Parkway Life Reit reported a 2.1 per cent increase in its distribution per unit (DPU) to a record 14.08 Singapore cents for the financial year ended Dec 31, 2021 despite a small dip in gross revenue. For the fourth-quarter of FY2021, its DPU was unchanged at 3.57 Singapore cents, the manager of the real estate investment trust (Reit) said in an interim financial statement on Monday (Jan 24). Distributable income to unitholders stayed at S$21.6 million in Q4 but for FY2021, it rose to S$85.2 million.

Drama and film production company GHY Culture & Media said it has recently discovered cases of unauthorised use of the company’s name and logo. One of such uses includes a “G.H.Y Culture & Media” application platform that allegedly conducts fraudulent transactions to lure investors to invest in supposed drama and film productions. GHY’s board said the group is in no way connected to or affiliated with the parties on the other end of the use. The board also clarified that it does not endorse these uses, and makes no representations and warranties, nor bears any responsibility for any activities, actions or information in these uses.

Property developer Astaka Holdings has entered into a non-binding memorandum of understanding (MOU) through its subsidiary Astaka Padu with Malaysian company DMR Holdings for a potential collaboration to jointly undertake land development projects in Johor, Malaysia. These projects will cover 42 acres of land across various key cities in Johor, including Iskandar Puteri, Tampoi and Pengerang, and have a total gross development value of RM1 billion (S$320.8 million), the company said on Monday (Jan 24). The development projects are expected to be completed over the span of 5 years and consist of mixed commercial developments and a light industrial park development.

Real estate developer Yanlord Land Group on Monday (Jan 24) announced that it has sold all 514 apartment units during the inaugural launch of its Poetic Villa project in Shanghai. The group bagged pre-sales totalling some 3.2 billion yuan (S$679.7 million) from a total gross floor area of 46,726 sq m at an average selling price of 67,725 yuan per sq m. This brings Yanlord’s total contracted pre-sales from its recent 2 launches in Shanghai – namely Yanlord Arcadia and Poetic Villa – to about 7.2 billion yuan.


Peloton Interactive Inc has received a letter from an activist investor, demanding that it fire its chief executive officer and pursue a sale. Blackwells Capital, which has a stake of less than 5 per cent in the exercise-machine maker, has called for the departure of CEO and co-founder John Foley, and wants Peloton to explore a sale of the business. Peloton could be an attractive acquisition target for larger technology or fitness firms, according to an investor letter seen by Bloomberg. The shares rose about 3 per cent in US pre-market trading. Peloton’s shares have tumbled more than 80 per cent from their all-time high a year ago, as the gradual easing of pandemic-era restrictions fuelled concern that growth of the stay-home fitness company will slow.

Boeing Co is investing a further US$450 million in Wisk to support development of future pilotless flying taxis, the US aerospace giant said on Monday. California-based Wisk, owned by Boeing and Kitty Hawk – the air vehicle firm launched by Google co-founder Larry Page – is one of dozens of electric vertical takeoff and landing (eVTOL) makers, but differs in focusing its energy on autonomous flight. “Our view is that is the big strategic advantage of Wisk, going straight to a self-flying aircraft, building those principles in at every level of the design and development,” Boeing’s chief strategy officer Marc Allen told Reuters.

Shares of the blank-cheque acquisition firm that agreed to merge with former President Donald Trump’s social media venture have outperformed every other special purpose acquisition company (SPAC), despite the regulatory risks facing the deal and investors now snubbing the vast majority of such vehicles. Digital World Acquisition Corp, which inked a US$875 million deal in October to merge with Trump Media & Technology Group Corp (TMTG), currently ranks as the best performing SPAC stock, said SPAC Research. Digital World’s shares ended trading at US$73.12 on Friday, way above their US$10 initial public offering price. This infers a valuation on the combined entity of close to $13 billion, including debt.

The selloff in cryptocurrencies gained momentum on Monday (Jan 24), with Bitcoin tumbling to a 6-month low and other digital tokens seeing even bigger losses. Bitcoin sank as much as 6.6 per cent and fell below the US$34,000 mark, continuing a 6-day downturn. Ether retreated 7.6 per cent and touched US$2,201, also the lowest since July. Across the crypto spectrum, markets were in a sea of red with Solana’s SOL and Cardano’s ADA plummeting 19 per cent and 13 per cent, respectively, according to data compiled by CoinGecko.

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

Technical Pulse: Tesla Inc.

Recommended: Technical BUY; analyst: Chua Wei Ren

Tesla Inc (US: TSLA) has been stopped out based on our report dated 11th Jan 2022 but we also mentioned in that report that the stock will likely find its rebound at US$880-US$853 and it did rebound at the zone on Monday. Wave analysis also pointed out a return of the bullish sentiment

Buy spot: 930.00 Stop loss: 800.00 Take profit 1: 1150.50 Take profit 2: 1300.40

Technical Pulse: Wells Fargo & Co

Recommended: Technical BUY; Analyst: Chua Wei Ren

Wells Fargo (US: WFC) Technicals shows potential bullish continuation

Buy spot: 53.32 Stop loss: 50.00 Take profit 1: 59.00 Take profit 2: 67.40

POEMS Podcast: Let the Money Talk

Recent Podcasts:

Introduction of Chinese New year & The Year of Tiger Zodiac
Daily Morning Note – 24 January, 2022

Daily Morning Note – 21 January, 2022

Visit www.stocksbnb.com to learn more!

Join our Phillip Securities Research Telegram channel for the latest update on our stock coverage!

Click here to join: https://t.me/stocksbnb

Webinar Of The Week

Weekly Market Outlook: Fortress Minerals, GSS Energy, Olam Intl, TOTM Technologies, SG Banking….

Date: 24 January 2022

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