Daily Morning Note – 28 March 2022
Stocks looked set for a cautious start Monday as Russia’s war in Ukraine pushes into a second month and questions swirl about the economic impact of tighter U.S. monetary policy to fight high inflation. Equity futures were steady for the U.S. and earlier pointed to muted opens in Japan and Australia. China’s planned Covid-linked lockdown in Shanghai may sap the mood when markets in Hong Kong and the mainland begin trading later. Sovereign yields jumped in Australia and New Zealand amid pressure on bonds stemming from concerns about price pressures and tightening monetary policy. The fixed-income selloff pushed the U.S. 10-year Treasury yield to almost 2.5% last week, past a technical trend line that has effectively served as a ceiling since the late 1980s. Crude oil retreated to about $111 a barrel. The dollar was mixed against major peers, with the yen around a six-year low against the greenback.
SG
Agri-food giant Olam Group has agreed to sell a 35.4 per cent stake in Olam Agri Holdings to the Saudi Agricultural and Livestock Investment Company (Salic) for US$1.2 billion. Salic is a wholly-owned subsidiary of the Public Investment Fund of the Kingdom of Saudi Arabia. In a call to discuss the transaction, Olam Group’s chief executive Sunny Verghese said this move unlocks the “hidden value” of the Olam Agri business in the group’s portfolio and unlocks value for the shareholders of the group.
Capitaland Integrated Commercial Trust (CICT) and CapitaLand Open End Real Estate Fund (Coref) have entered into an agreement to acquire a Grade-A office building at 79 Robinson Road for S$1.3 billion. The purchase will be done by acquiring 70 per cent and 30 per cent respectively of the shares of the property holding company Southernwood Property Ptd Ltd, CICT and Coref said in a bourse filing on Friday (Mar 25).
Excelpoint Technology is in talks with a third party on a potential transaction involving the company’s shares, the electronics component distributor said in a bourse filing on Friday (Mar 25) night. Addressing the recent price movements of its shares on the Singapore Exchange, the mainboard-listed company said discussions are ongoing with the unnamed third party. However, it added that there is “no certainty or assurance that such discussions will progress beyond the current stage or that any transaction will materialise as a result of such discussions”.
Singtel’s wholly-owned subsidiary Singapore Telecom International has monetised a 1.6 per cent stake in telecommunications company Airtel Africa through a market placement. The telco raised net proceeds of about S$150 million from the placement exercise, which was “well oversubscribed”, it said in a bourse filing on Friday (Mar 25). The exercise was part of the mainboard-listed company’s capital recycling strategy, it said.
US
General Motors will halt pickup truck production at a factory in Indiana for two weeks next month due to an ongoing shortage of semiconductor chips that has wreaked havoc on the global automotive industry for more than a year. The supply of chips, which are critical parts for new vehicles, was expected to gradually improve for automakers throughout this year, but other problems in the supply chain, including Russia’s ongoing invasion of Ukraine, have clouded such expectations.
Bed Bath & Beyond announced Friday that it has struck a deal with activist investor Ryan Cohen, sending the company’s stock higher. Shares closed 2.2% higher Friday. The home goods retailer said in a news release that three people chosen by Cohen’s firm, RC Ventures, will immediately join Bed Bath’s board as independent directors. They include Marjorie Bowen, Shelly Lombard, and Ben Rosenzweig.
Source: SGX Masnet, The Business Times, Bloomberg, Channel NewsAsia, Reuters, CNBC, PSR
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Date: 21 March 2022
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