Daily Morning Note – 29 June 2021

PHILLIP SUMMARY

Wall Street stocks were mixed early Monday ahead of key economic data this week updating the state of the US economic recovery from the coronavirus downturn

Equities last week received support from progress on President Biden’s infrastructure package and a series of appearances from Federal Reserve officials that were seen as reassurances that a major about-face in US monetary policy is not imminent

On the downside, the Delta variant of Covid-19 is garnering more attention after it prompted new restrictions in Australia


BREAKING NEWS

SG News

Voluntary unconditional cash offer for Top Global has closed with valid acceptances representing 95.89 per cent of the total number of shares, the company said in a bourse filing on Monday. The offer closed at 5.30 pm on June 28. It was made in April by Top Global executive director and controlling shareholder Sukmawati Widjaja through her investment vehicle SW Investment Holding, with an offer price of S$0.39 per share.

Privatisation offer for Sin Ghee Huat Corporation has closed with valid acceptances representing 94.94 per cent of the total number of shares, Sin Ghee Huat said on Monday in a bourse filing. The voluntary unconditional offer by HHH Co closed at 5.30pm on June 28. HHH Co said that it will exercise its right of compulsory acquisition to compulsorily acquire all the remaining shares at the offer price of S$0.27 per share.

Kori Holdings said on Monday that its subsidiary Kori Construction snagged two contracts in two projects, amounting to S$52.3 million between May and June this year. One project is awarded by Samsung C&T Corporation to supply and install temporary steel works for the design and construction of a tunnel between Novena Rise and Toa Payoh Rise for the North-South Corridor. The other is awarded by the Hwa Seng-Chye Joo-Ho Lee joint venture to supply, install, dismantle and buy back steel struts and walers for the design and construction of a tunnel between Pemimpin Place and Sin Ming Avenue, also for the North-South Corridor.

Yanlord Land Group and Ho Bee Land have entered an agreement to jointly develop a residential site in Tianjin, China, the real estate developers said on Monday. The land parcel has a total site area of 53,200 square metres (sq m) and was acquired by Yanlord through public land auction for approximately 1.5 billion yuan (S$312.3 million). It is located in the prime residential area of Tianjin city, adjacent to the office of the Hongqiao District Government of Tianjin and the major commercial and office district.

CapitaLand will divest partial stakes in six of its Raffles City developments in China to Ping An Life Insurance Company of China for 46.7 billion yuan (S$9.6 billion), unlocking over S$2 billion in net proceeds that will be partly ploughed back into new economy assets in China. CapitaLand will retain a stake of 12.6 per cent to 30 per cent in each development, namely Raffles City Shanghai, Raffles City Beijing, Raffles City Ningbo, Raffles City Chengdu, Raffles City Changning (Shanghai) and Raffles City Hangzhou, the group said in a filing to the Singapore Exchange on Monday morning. The group currently holds stakes ranging from 30.7 per cent to 55 per cent.


US News

Wells Fargo & Co said on Monday it planned to repurchase US$18 billion worth of shares for the period between the third quarter of 2021 and the second quarter of 2022. The bank also said it expects to double its common stock dividend in the third quarter to 20 cents per share.

US House of Representatives Foreign Affairs Committee Republicans said on Monday they opposed Democratic-led legislation intended to boost competitiveness with China and push Beijing on human rights, meaning the panel will likely advance the bill this week with only Democratic support.

The current craze over all things digital, including calls for official crypto currencies, may have similarities with an unfortunate fashion fad, a top Federal Reserve official said on Monday. While “America’s centuries-long enthusiasm for novelty” has been mostly beneficial, Fed Vice Chair Randal Quarles warned that “when coupled with an equally American susceptibility to boosterism and the fear of missing out, it has also sometimes led to a mass suspension of our critical thinking and to occasionally impetuous, deluded crazes or fads.”

After declining fast for two months, the rate of Covid infections in the United States has levelled off since mid-June thanks to localised spikes in under-vaccinated regions of the country, data showed Monday. It comes as the highly contagious Delta variant continues to gain traction, now accounting for 35.6 per cent of sequenced cases in the past two weeks, according to the covSpectrum tracker. Authorities have said it is poised to soon become the country’s dominant strain.

The Nasdaq and S&P 500 each finished at records on Monday on the continued resurgence of technology shares, while weakness in financial and industrial equities left the Dow lower. The tech-rich Nasdaq Composite Index led the market, winning 1.0 per cent to close the session at 14,500.51, easily topping its prior record. The broad-based S&P 500 gained 0.2 per cent to end at 4,290.61, its third straight all-time high, but the Dow Jones Industrial Average dropped 0.4 per cent to 34,283.27.


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

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