DAILY MORNING NOTE | 28 March 2024

Trade of The Day

Visa Inc. (NYSE: V)

Analyst: Zane Aw

(Current Price: US$280.60) – TECHNICAL SELL
Sell price: US$280.60 Stop loss: US$286.00 (-1.92%)
Take profit 1: US$273.00 (+2.71%) Take profit 2: US$266.00 (+5.20%)

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Trades Initiated in the past week

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Singapore stocks inched higher for the second consecutive day on Wednesday (Mar 27), as regional bourses ended mixed. Stocks rose 0.6 per cent or 18.38 points to close at 3,251.71. Across the broader market, advancers outnumbered decliners 289 to 270, with 1.4 billion securities worth S$1.4 billion having changed hands. The biggest gainer was energy company Sembcorp Industries, which gained 1.9 per cent or S$0.10 to close at S$5.41. Local banks also moved up the index. DBS gained 1.5 per cent or S$0.55 to close at S$36.63; UOB rose 1.5 per cent or S$0.43 to close at S$29.68. The biggest decliner was Seatrium, which fell by 2.5 per cent or S$0.002 to close at S$0.079.

The S&P 500 pushed to a fresh record Wednesday as Wall Street stocks bounced after a few downcast sessions as investors eyed the finale of the first quarter. Stocks recovered on Wednesday, with all three major indices winning solid gains in a move seen as “window dressing” . The broad-based S&P 500 finished at 5,248.49, up 0.9 per cent, topping a record set last week. The Dow Jones Industrial Average gained 1.2 per cent to 39,760.08, while the tech-rich Nasdaq Composite Index advanced 0.5 per cent to 16,399.52.

Top gainers & losers

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Events Of The Week

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SG

The cut-off yield on the latest Singapore six-month Treasury bill (T-bill) rose slightly to 3.8 per cent, according to auction results released by the Monetary Authority of Singapore (MAS) on Wednesday (Mar 27). The previous auction, which closed on Mar 14, offered 3.78 per cent yield. Demand continued to rise in the latest tranche. The auction received a total of S$15.6 billion in applications for the S$6.1 billion on offer, representing a bid-to-cover ratio of 2.55. In comparison, the previous auction received S$14.4 billion in applications for the S$6.3 billion on offer.

Banyan Tree Holdings and Maybank Singapore have collaborated on Banyan Tree’s first sustainability-linked senior unsecured syndicated term loan facility. Maybank, the sole mandated lead arranger, underwriter, bookrunner and sustainability coordinator, spearheaded the facility, which amounts to $70 million. Bank of India (Singapore Branch) and Hua Nan Commercial Bank, Ltd. (Singapore Branch) are the lead arrangers. Maybank has mobilised RM68 billion ($19 billion) in sustainable finance across the group from 2021 to 2023, on track to achieve its target of RM80 billion by 2025.

Addvalue Technologies has secured a new order worth US2.1 million ($2.8 million) for its space connectivity business on March 27. The order for inter-satellite data relay system (IDRS) terminals is a repeat order from an existing IDRS customer. The latest order has brought the company‘s order book to US$19.4 million, taking into account the US$9.2 million of the order book fulfilled from April 1, 2023 to Feb 29. The current unfulfilled order book stands at US$10.2 million. Shares in Addvalue closed 0.1 cent higher or 14.29% up at 0.8 cents on March 27.

Cordlife Group’s chief financial officer Thet Hnin Yi was the latest to be arrested by the Commercial Affairs Department (CAD) and released on bail after four of the company’s directors and its former group chief executive, Tan Poh Lan, went through the same process. The cord-blood bank on Wednesday (Mar 27) said Thet was also arrested in connection with investigations related to irregular temperatures in a certain cryogenic storage tank, first disclosed by the group on Nov 30, 2023.


US

Jefferies Financial Group’s earnings rose in its fiscal first quarter on strength in capital markets and renewed activity in the investment-banking business. Revenue jumped 35 per cent to US$1.74 billion in the three months to February on improved debt and equity underwriting, the firm said on Wednesday (Mar 27), as concerns about inflation and interest rates started to stabilise. The company’s capital-markets business had its third-best quarter on record, helping lift profit, while investment-banking revenue increased 31 per cent to US$739.7 million in a sign of a possible return of dealmaking. Earnings totalled US$149.6 million, or 66 US cents a share, up 12 per cent from a year earlier.

Gold prices held firm on Wednesday (Mar 27), supported by lower US Treasury yields, although bullion traded in a narrow range as investors stayed on the sidelines awaiting more cues on the Federal Reserve policy. Spot gold was steady at US$2,178.31 per ounce, following two session on gains. US gold futures edged 0.1 per cent lower to US$2,173.70 per ounce.

Disney backed down on Wednesday from a long-running legal battle with Florida Gov. Ron DeSantis over control of the Orlando-area land that is home to its most important resort, ending a yearslong feud and handing the governor a political victory. The company’s truce with the Central Florida Tourism Oversight District, the entity that oversees the resort’s land and infrastructure, gives DeSantis more power and influence over the company’s Florida operations. It also paves the way for Disney to expand its theme parks and resort properties in the state.

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


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