Daily Morning Note – 27 May 2021

PHILLIP SUMMARY

US equities eked out modest gains on Wednesday after a lackluster session that saw positive corporate news dueling with lingering concerns over the global recovery and US inflation. Amazon announced a deal to acquire MGM studios, and major retailers reported an earnings surge fueled by cash-flush American consumers. The Dow Jones Industrial Average ended essentially flat at 34,323.05. The broad-based S&P 500 edged up 0.2 percent to close at 4,195.99, while the tech-rich Nasdaq Composite Index advanced 0.6 percent at 13,738.


BREAKING NEWS

SG News

Monetary Authority of Singapore (MAS) is joining the Mojaloop Foundation as a sponsor-level member – making it the first central bank to do so – to advance financial inclusion in emerging economies. This will be done via digital currency-based settlement systems and foundational digital infrastructure, MAS and the Mojaloop Foundation said in a joint release on Wednesday. The collaboration is also expected to deliver opportunities for fintech players in Singapore and the broader Asia-Pacific.

A-Sonic Aerospace is proposing a bonus issue of up to some 14.62 million warrants on the basis of one warrant for every four existing shares, which would see it raising gross proceeds of up to S$1.17 million. Each warrant will entitle the warrant holder to subscribe for one new share in the company at an exercise price of S$0.08, which is a discount of 88 percent to the last transacted price of S$0.665 per share on the Singapore Exchange (SGX) on May 25, the day before the announcement was made.

A unit of China Haida, CHD Engineering and Trading, has entered into a joint venture (JV) agreement with K-United Builder (KUB) to collaborate to supply and install aluminum products for projects in Singapore and Malaysia. The first project is for a commercial building in Johor, Malaysia with a contract value of S$1.68 million. Work will start on Aug 2 this year and is slated for completion on Dec 1, 2022. The scope of work is to supply aluminum cladding and roof work for a commercial building which is being erected in Iskandar Puteri, Johor.

Ntegrator International has entered into a conditional placement agreement to issue some 187.86 million new shares in the company as part of a proposed placement exercise to raise about S$2.06 million. At S$0.01094 per share, the subscription price is a discount of 9.96 percent to the weighted average price of S$0.01215 for trades done on the Singapore Exchange (SGX) on May 21, which was the last day on which the company’s shares were traded prior to the signing of the agreement.


US News

Exxon Mobil’s management will face a big challenge over its climate change policies at an annual shareholder meeting on Wednesday as activists contest the election of one-third of the company’s board. Analysts who follow the company said they could not recall an election in which board candidates nominated by Exxon had lost. A defeat for even one of its nominees would be a rebuke to Darren W Woods, Exxon’s chairman and chief executive.

China’s Xiaomi said on Wednesday a US court has removed the company’s designation as a Communist Chinese Military Company (CCMC) and lifted all restrictions on US persons buying or holding its stock. “The US District Court for the District of Columbia issued a final order vacating the US Department of Defense’s designation of the company as a CCMC,” the smartphone maker said in a filing to the Hong Kong bourse. It said the order was made on Tuesday.

Gold prices held firm near a 4-1/2-month high on Wednesday as a drop in US Treasury yields and a weaker dollar supported the safe-haven metal. Spot gold was steady at US$1,899.11 per ounce by 12.41am GMT, after hitting its highest since Jan 8 at US$1,899.11 on Tuesday. US gold futures edged 0.1 percent higher to US$1,899.60 per ounce.

Oil prices settled higher on Wednesday as a drop in US crude stockpiles reinforced expectations of improving demand ahead of the peak summer driving season, offsetting worries that a possible return of Iranian supply would cause a glut. Brent settled up 16 cents, or 0.3 percent, to US$68.87 a barrel and US West Texas Intermediate (WTI) crude settled up 14 cents, or 0.2 percent, at US$66.21 a barrel.

Wall Street bank chiefs will tout the role their institutions have played in getting the pandemic-hit US economy back on track when they appear before Congress this week, but are likely to face tough questions on hot-button social and economic issues.

Goldman Sachs Group received approval from Chinese regulators to set up a wealth management joint venture in the world’s second-largest economy to go after an asset pool it estimated will surpass US$70 trillion by the end of this decade. Goldman Sachs Asset Management will hold 51 percent in the venture, while the wealth arm of Industrial & Commercial Bank of China (ICBC), the world’s largest bank by assets, will own the remainder, the firms said on Tuesday.

Amazon Inc said on Wednesday it is buying MGM, the fabled US movie studio home to the James Bond franchise, for US$8.45 billion, giving it a huge library of films and TV shows and ramping up competition with streaming rivals led by Netflix and Disney+.


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

HK Reports – Read up on our Hong Kong reports here

Webinar Of The Week

Market Outlook: Weekly Market Outlook: Yoma, Prime US REIT, Dasin, SIA, Koufu Group, Thai Bev, Q&M Dental, SG Weekly

Date: 24 May 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