Daily Morning Note – 27 April 2021

PHILLIP SUMMARY

Asian stocks are set for a muted open Tuesday as the earnings season unfolds and amid expectations the Federal Reserve will remain accommodative at its meeting this week despite robust growth.

Futures in Japan, Australia and Hong Kong were little changed. U.S. contracts traded in the green after the S&P 500 Index notched another record amid solid corporate earnings, with most of the main 11 industry groups gaining. Tesla Inc. shares slipped in after-hours trade after the firm reported a profits beat but left the multiyear outlook for growth in deliveries unchanged.


BREAKING NEWS

SG News

Capitaland Integrated Commercial Trust (CICT) saw its net property income (NPI) rise 66.6 per cent in the first quarter ended March 31, 2021 to S$247.1 million from S$172.1 million a year ago, reported its manager in a business update on Monday morning. Gross revenue rose 63.9 per cent year on year to S$334.8 million from S$204.3 million in Q1 2020. The improved revenue and NPI for Q1 were mainly due to higher integrated development performance compared to the previous year, as well as after factoring in income contribution from office assets starting from Oct 21, 2020.

Supermarket operator Sheng Siong on Monday posted a net profit of S$30.9 million for its first quarter ended March 31, a rise of 6.5 per cent from the S$29 million recorded the preceding year. The group’s revenue for the quarter also went up 2.7 per cent year on year, from S$328.7 million in Q1 FY20 to S$337.5 million in Q1 FY21. Sheng Siong noted that the slight increase in revenue for the quarter was “contributed entirely” by revenue growth in new stores that opened last year. A total of five new stores were opened in FY2020.

Wealth management platform iFast Corporation on Monday announced that its wholly-owned subsidiary, iFast Financial, has entered into a business transfer agreement with DWS Investments Singapore (DWS) for the transfer of its fund management business relating to its Singapore mutual funds platform, comprising seven authorised retail funds. The purchase consideration for the transaction is about S$3 million, based on the fair value of the assets being acquired, said the company in a bourse filing. Currently, assets under management of the funds stand at some S$600 million.


US News

ExxonMobil’s strategy in the face of climate change poses an “existential business risk” to the company, according to an activist hedge fund that is a shareholder in the oil giant, a report in the Financial Times said Sunday. The company, which has been criticised over the last year for both its financial performance and its approach to renewable energy investment, “has no credible plan to protect value in an energy transition,” hedge fund Engine No. 1 said in an 80-page investor presentation.

The most popular currency trade at the beginning of the year has splintered as Wall Street takes to opposing sides on the fate of the dollar in the world’s pandemic recovery. JPMorgan Asset Management and T. Rowe Price see the dollar weakening as US economic exceptionalism wanes, while PineBridge Investments expects it to strengthen. Currencies from the euro to the Brazilian real – which suffered in the first quarter – have attempted rallies this month, leaving the greenback sitting at a closely-watched technical crossroads.

Tesla reported a jump in first-quarter profits on Monday on surging electric vehicle sales, and the manufacturer said it was on track to boost automotive capacity at factories in three countries. Elon Musk’s electric car company has faced questions in recent days following a fatal car crash in Texas and sharp criticism of the company on social media in China. But Monday’s results were strong as Tesla essentially maintained its output from the fourth quarter despite “multiple” challenges that included the semiconductor shortage that has roiled the auto industry worldwide.

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

TECHNICAL REPORTS

UMS Holdings Ltd

Analyst: Chua Wei Ren

Recommended Action: Technical BUY

UMS Holding Ltd (SGX: 558) rebound after a strong down move in Mid-February 2021 rebounded strongly in early March 2021. Although UMS has yet to clear the high, the technical indicate that UMS is likely to rally higher

Buy spot: 1.36 Stop loss: 1.28 Take profit 1: 1.45 Take profit 2: 1.56


>> Read more Technical reports

HK Reports – Read up on our Hong Kong reports here

Webinar Of The Week

Market Outlook: Keppel, Fortress Minerals, Mapletree, Aztech Global, Avarga, SG Weekly

Date: 26 April 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.