Daily Morning Note – 29 January 2021

PHILLIP SUMMARY

Futures were up more than 1% in Japan and Hong Kong, while Australian shares opened higher. S&P 500 contracts slipped after the gauge rebounded from its worse loss since October. Trading platforms restricted activity in stocks whipsawed by internet chatrooms, from GameStop Corp. to AMC Entertainment Holdings Inc. Hedge funds that had shorted the shares were burned in recent days, forcing them to reduce holdings to lower risk levels. Treasuries retreated, pushing the yield on 10-year notes up to 1.05%.

All 11 industry groups in the S&P 500 traded higher, with sentiment also boosted by solid corporate earnings from the likes of Mastercard Inc. and Comcast Corp. and a surprise drop in jobless claims. Still, oil declined the most in nearly a week with the spread of new Covid-19 variants and tighter lockdown measures weighing on nascent hopes of a demand recovery.

BREAKING NEWS

Mapletree North Asia Commercial Trust (MNACT) reported that its net property income (NPI) jumped 49 per cent to S$75.7 million for the third quarter ended Dec 31, 2020, in a business update after trading hours on Thursday. Gross revenue for the period rose 49.7 per cent to S$100.7 million, primarily because there was no rental collection for Q3 FY19/20 during the temporary closure of Festival Walk mall in Hong Kong from Nov 13, 2019 to Jan 15, 2020 and its office tower from Nov 13 to 25, 2019.

In a business update, Frasers Hospitality Trust’s (FHT) manager said that it is confident in the long-term fundamentals of the markets it has presence in – Singapore, Australia, UK, Japan, Malaysia and Germany – and will continue to prepare for the eventual recovery of international tourism. “Given the sizeable domestic tourism markets in Australia, Japan and the UK, a rebound in domestic tourism is likely to help FHT’s properties in these countries recover sooner than the rest of its portfolio,” it said.

OUE Commercial Real Estate Investment Trust (OUE C-Reit) on Thursday posted a distribution per unit (DPU) of 1.43 Singapore cents for the second half of the fiscal year ended December 2020, down 12.3 per cent from 1.63 Singapore cents in the year-ago period. As a result, the Reit’s FY 2020 DPU came in at 2.43 Singapore cents, some 26.6 per cent lower than 3.31 Singapore cents a year ago.

Keppel Corporation said on Thursday that it will be restructuring its subsidiary Keppel Offshore & Marine (Keppel O&M) into a slimmer, more asset-light one, with Keppel O&M to exit the offshore rig building business after completing existing rigs under construction. This was announced alongside Keppel’s second-half FY2020 results, where it recorded a net profit of S$31.3 million for its second-half ended Dec 31, 2020, down 91.1 per cent from a year ago on the back of decreased contributions across segments, with Energy & Environment hard-hit in particular.

Beer and liquor giant Thai Beverage Public Co (ThaiBev)‘s brewery unit is heading for a listing on the Singapore Exchange (SGX), Bloomberg reported. The report cited sources with knowledge of the matter that the company is seeking a valuation of about US$10 billion for the unit, with the listing possibly taking place as soon as the second quarter.

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

HK Reports – Read up on our Hong Kong reports here

Webinar Of The Week

Market Outlook: : (PSR) SGX, FCT, CICT, CAPL, SG Bonds, Technical Analysis and SG Weekly

Date: 25 January 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