DAILY MORNING NOTE | 26 March 2024

Trades Initiated in the past week

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Singapore stocks closed lower on Monday (Mar 25), after official data showed that the country’s headline and core inflation rose more than expected in February. Stocks shed 0.6 per cent or 19.87 points to close at 3,198.10. Across the broader market, decliners outnumbered advancers 279 to 255, with 1.7 billion securities worth S$1 billion having changed hands. The biggest gainer on the STI was Yangzijiang Shipbuilding +1.08%, which gained 1.1 per cent or S$0.02 to close at S$1.88. The biggest loser on the index was property developer City Developments -1.52%, which fell by 1.5 per cent or S$0.09 to close at S$5.82. Shares of Seatrium -1.27% were the most actively traded by volume for the day.

Wall Street’s main indexes kicked off the holiday-shortened week lower on Monday (Mar 25), as investors looked ahead to commentary from US Federal Reserve officials and key inflation data. The Dow Jones Industrial Average fell 65.36 points, or 0.2 per cent, at the open, to 39,410.54. The S&P 500 opened lower by 14.66 points, or 0.3 per cent, at 5,219.52, while the Nasdaq Composite dropped 93.52 points, or 0.6 per cent, to 16,335.30 at the opening bell.


Top gainers & losers

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Events Of The Week

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SG

Singapore’s inflation heated up more than expected in February, with both headline and core inflation rising at a faster pace than the month before, data from the Monetary Authority of Singapore (MAS) and Ministry of Trade and Industry (MTI) showed on Monday (Mar 25). Headline inflation for the month rose to 3.4 per cent year on year, higher than the 2.9 per cent recorded in January, as well as the 3.2 per cent median forecast by private-sector economists polled by Bloomberg. The higher inflation is a reflection of a pickup in accommodation inflation, in addition to higher core prices.

Eng Lam Contractors Co, a wholly-owned subsidiary of OKP Holdings , has been awarded a contract worth approximately $17.7 million from the Public Utilities Board (PUB) for the improvement of old roadside drains under the Estate Upgrading Programme (EUP). Under the contract, Eng Lam will be involved in the reconstruction of box drains, entrance culverts, open drains, box culverts and sumps along with its associated works at the Sunrise and Cactus Estates in Cheng San. The work will also include the replacement, reconstruction and installation of drop inlet chambers, kerb re-alignment, diversion of water mains and pipelines as well as other ancillary works.

CSE Global has raised a total gross proceeds of $24 million from its share placement of 60 million new ordinary shares, attracting strong demand from institutional and accredited investors. The issue price per share for the placement shares was 40 cents, representing a discount of approximately 6.6% to the volume weighted average price of 42.81 cents per share on March 13, the last full market day preceding the date the placement agreement for the share placement was signed. Including the placement shares, CSE Global’s share base has been enlarged by 9.71% to approximately 678.11 million shares.

Shareholders of A2B Australia have given their go-ahead for ComfortDelGro to acquire their company, with 97.73% of eligible votes cast in favour. The deal, first announced last December, will be completed next month. ComfortDelGro already owns 9.25% of the ASX listed and is offering A$165.1 million to acquire the rest of the shares.


US

Boeing CEO Dave Calhoun will step down by year-end in a broad management shakeup brought on by the planemaker’s sprawling safety crisis exacerbated by a January mid-air panel blowout on a 737 MAX plane. In addition, board chair Larry Kellner and Stan Deal, head of the company’s commercial planes business, are also leaving as Boeing’s board tries to get control of the myriad issues that have shaken confidence in the iconic planemaker over the last several weeks. Boeing shares have lost roughly a quarter of their value since the incident.

Lucid is raising US$1 billion in capital from an affiliate of Saudi Arabia’s Public Investment Fund (PIF), it said on Monday, sending the shares of the luxury electric carmaker up nearly 20 per cent. The latest investment by the sovereign wealth fund underscores a key advantage Lucid has in the race for survival among struggling EV startups. The Saudi government, which has a 60 per cent stake, has invested billions in Lucid’s success as part of a strategy to diversify the Kingdom’s economy beyond oil. The California-based company, which has been facing weaker-than-expected demand, said it intends to use the proceeds for corporate purposes and capital expenditure among other things. Lucid is one of several EV startups hit hard by the slowdown in demand growth and a price war sparked by Tesla.

Apple, Alphabet’s Google and Meta Platforms will be investigated for potential breaches of the EU’s new Digital Markets Act, potentially leading to hefty fines for the companies. The European Union law, effective from Mar 7, aims to challenge the power of the tech giants by making it easier for people to move between competing online services like social media platforms, Internet browsers and app stores. That should in turn open up space for smaller companies to compete. Violations could result in fines of as much as 10 per cent of the companies’ global annual turnover.

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


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