Daily Morning Note – 26 March 2021

PHILLIP SUMMARY

Asian markets are set to open higher on Friday after U.S. equities rose as investors weighed the outlook for economic growth and inflation and welcomed progress on vaccination rollouts. “Market sentiment remains fairly bullish, and volatility, by post-pandemic standards, is remarkable low,” said IG Markets analyst, Kyle Rodda. “At the moment – and indeed, this could be a level of complacency – the week’s choppiness in stocks has been taken in stride.” Australian S&P/ASX 200 futures rose 0.30% in early trading, while MSCI’s gauge of stocks across the globe gained 0.14%. Emerging market stocks lost 0.77%. MSCI’s broadest index of Asia-Pacific shares outside Japan closed 0.55% lower, while Japan’s Nikkei 225 futures fell 0.02%. The Nikkei 225 index closed the overnight session up 1.14% at 28,729.88. The futures contract is up 0.52% from that close. Hong Kong’s Hang Seng index futures rose 0.37%.


BREAKING NEWS

SG

FORMER Catalist-listed private nursing home operator Econ Healthcare is looking to list on the Catalist board of the Singapore Exchange again. On Thursday, it lodged its preliminary prospectus – without pricing information – sharing its organic and inorganic expansion plans, such as by by merger and acquisitions as well as the upgrading of existing facilities. Econ Healthcare has two business segments – medicare centres and nursing homes; as well as other operations and ancillary services such as providing healthcare training services, offering traditional Chinese medicine services at its clinics, and operating senior activity centres in Singapore.

SEMBCORP Industries’ wholly-owned unit Sembcorp Fuels (Singapore), hasbeen appointed by the Energy Market Authority as a new term liquefied natural gas (LNG) importer for Singapore, allowing it to import and sell regasified LNG to customers in the market. Sembcorp, Singapore’s first commercial importer of natural gas, has been building its core capabilities in gas import and retail over the last two decades. “This appointment will enable Sembcorp to augment its offer of a diverse portfolio of energy generation sources and supplies in Singapore that now includes LNG, piped natural gas, biomass, waste, as well as solar,” it said. Sembcorp is also Singapore’s largest natural gas supplier and leading solar energy provider, and believes it is able to contribute to the nation’s energy transformation.

DBS announced that it has partnered Chubb Insurance to offer DBS/POSB customers free insurance for unexpected complications arising from the Covid-19 vaccine. Launched on Thursday, Covid-19 Vaccine Protect will extend S$100 per day for up to 14 days of hospital confinement and a lump sum payout of S$1,000 for ICU (intensive care unit) confinement in case of either complications arising from vaccinations or contraction of the virus. The policy also includes a lump sum bereavement assist benefit of S$10,000 for both cases. The 14-day vaccination cover commences on the date of each shot or before Dec 31, 2021, and is limited to two doses. Meanwhile, the Covid-19 coverage is valid for 30 days commencing on the date of application.

US

Robinhood Markets Inc is building a platform to “democratize” initial public offerings (IPOs), including its own, that would allow users of its trading app to snap up shares alongside Wall Street funds, according to people familiar with the matter. The move could further erode Wall Street’s grip on stock market flotations. It would be easier to implement for Robinhood’s own IPO, given how companies and their investment bankers tightly control allocations to investors in new listings. Currently, Robinhood users and other amateur traders cannot buy into stock of a newly listed company until its shares start trading. Since shares often trade higher when they debut, big funds that get allocations in the IPO have an advantage. The average first-day trading pop on U.S. listings of businesses in 2020 was 36%, according to data provider Dealogic.

The U.S. Supreme Court on Thursday unanimously ruled against Ford Motor Co in a case in which the second-largest U.S. automaker had sought to bar two state courts from hearing product liability suits involving a pair of serious crashes. Ford had appealed rulings by the top state courts in Montana and Minnesota that had allowed the litigation to proceed. The crashes occurred in those two states. Ford argued that the state courts should have jurisdiction only if its conduct in those states had given rise to the claims. The automaker also contended that since it designed the vehicles in Michigan, manufactured them in Kentucky and Canada and originally sold them in other states that Montana and Minnesota courts should not decide the cases.

GameStop and other so-called meme stocks surged on Thursday, as investors piled into the shares after a tumble in the previous session. Shares in video-game retailer GameStop closed up 52.7% at $183.75 with brisk trading volume after rising as high as $187.50 late in the session. The company’s shares remained down 8.2% for the week so far following losses after a lackluster earnings report late Tuesday during which the company disclosed it was evaluating the possibility of a share sale. They are up 875% year-to-date, though still far from their record high of $483 reached in late January. The company has benefited from a push by retail investors, often on online forums such as Reddit’s popular WallStreetBets, to drive up prices of stocks they believe undervalued.

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

TECHNICAL REPORTS

Genting Singapore Ltd

Analyst: Chua Wei Ren

Recommended Action: Technical BUY

Genting Singapore Ltd (SGX: G13) Bullish upside is set to continue despite a potential rounding top threaten to push price lower. However recent technical is showing a continue of the bullish rally.

>> Read more Technical reports

HK Reports – Read up on our Hong Kong reports here

Webinar Of The Week

Market Outlook: Lendlease REIT, Credit Bureau Asia, Southern Alliance Mining, CICT, SG Weekly

Date: 22 March 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





Disclaimer
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

IMPORTANT INFORMATION

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