Daily Morning Note – 29 March 2021


Global traders are bracing for what’s shaping up to be one of the most anticipated opens for U.S. equities in months following an extraordinary $20 billion wave of block trades Friday that rattled investors worldwide and overshadowed a record close on Wall Street. Asian markets will provide a gauge of the mood: Equity futures pointed higher in Japan and Australia, but questions remain about whether more block trades may be coming. The family office of former Tiger Management trader Bill Hwang, Archegos Capital Management, was behind the sales, according to two people directly familiar with the trades. Shares of Chinese tech giants and U.S. media conglomerates got dumped. Treasuries will be in focus mid-week with the expiry of a regulatory exemption for banks that’s helped prop up the Treasury market since last year’s pandemic panic



Wealth management fintech platform iFast Corporation‘s wholly-owned Malaysian unit, iFast Capital Sdn Bhd, has announced the launch of its stocks and exchange-traded funds (ETFs) brokerage services on FSMOne.com in Malaysia. The new range of services allows iFast Capital to provide its wealth management solutions under one platform.

TPG Capital Asia has picked banks to help prepare an initial public offering (IPO) of its pathology business in the region that could raise as much as S$800 million in Singapore, according to sources. The private equity firm is working with Citigroup and CIMB Group Holdings on the planned first-time share sale of Pathology Asia Holdings, said the people. A listing in the city-state could take place as soon as the end of this year, according to the people.

Following a transfer of a two-thirds ownership in Chinese conglomerate Tianjin Pharmaceutical Holdings (TPH) to a third party, a “chain offer” for the remaining shares of Tianjin Zhong Xin Pharmaceutical Group on both the Singapore and Shanghai bourses that are not held by offeror Tianjin Pharmaceutical Singapore International Investment and TPH has been triggered.

Nanofilm Technologies had been included into the FTSE ST Large & Mid Cap Index and the FTSE ST Mid Cap Index with effect from March 22, 2021. This follows the company’s inclusion in the FTSE ST China Index and FTSE ST Shariah Index on Dec 21, 2020.


Victoria’s Secret-owner L Brands raised its profit outlook for the first quarter on Friday, citing a boost from government stimulus and from loosened Covid-related restrictions. Its stock jumped more than 5.5% in early trading. The company now expects an adjusted profit of 85 cents to $1 per share, compared with its previous forecast of 55 cents to 65 cents. L Brands, which also owns Bath & Body Works, said it has seen “unusual shifts in consumer spending patterns,” which have led to boosted sales.

Darden Restaurants Inc. DRI, shares rose 4.2% on Thursday premarket trading after the Olive Garden parent reported fiscal third-quarter earnings and sales that beat the Street. Net income totalled $128.7 million, or 98 cents per share, down from $232.3 million, or $1.89 per share, last year. Sales of $1.733 billion were down from $2.347 billion last year.

The furniture retailer RH, formerly Restoration Hardware, on Wednesday reported fourth-quarter earnings and sales that topped Wall Street estimates, as it continued to see robust demand for its high-end furniture and home wares. CEO Gary Friedman said the momentum is expected to continue into this year, too, with revenue forecast to grow between 15% and 20% year over year in 2021. That includes expected sales growth of at least 50% in the first quarter, he said, as the company laps a period when its brick-and-mortar stores were temporarily shut due to the Covid pandemic.

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


PayPal Holdings Inc

Analyst: Chua Wei Ren

Recommended Action: Technical BUY

PayPal Holdings (US: PYPL) appears to be having a potential head and shoulder formation but as the technical indicated, PayPal is poised to edge higher.

>> Read more Technical reports


Pan- United Corporation Ltd. – Concrete leader & innovator

Recommendation: BUY (Maintained), Last Done: S$0.295

Target Price: S$0.40, Analyst: Tan Jie Hui

– Largest provider of ready-mixed concrete in Singapore. A recovery in construction demand by as much as 31% in 2021e is expected to boost its revenue for the next two years.

– Barriers to entry include limited silos and costly batching plants. Vertical integration provides resilience. Competitive edge is sustained through downstream innovations.

– Initiate coverage with BUY and target price of S$0.40, based on 7.8x FY21e EV/EBITDA, its 10-year average (excluding outliers in FY12 and FY17).

>> Read more research reports

HK Reports – Read up on our Hong Kong reports here

Webinar Of The Week

Market Outlook: Lendlease REIT, Credit Bureau Asia, Southern Alliance Mining, CICT, SG Weekly

Date: 22 March 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

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