DAILY MORNING NOTE | 29 March 2023

Singapore shares advanced 0.5 per cent on Tuesday (Mar 28). Jardine Cycle & Carriage was the top advancer on Tuesday, gaining 1.1 per cent or S$0.33 to S$29.53. The trio of lenders were also among the biggest gainers, as local traders remained unfazed by the global banking crisis. UOB added 1 per cent or S$0.28 to S$29.76, DBS rose 0.5 per cent or S$0.16 to S$33.62, while OCBC advanced 1.1 per cent or S$0.14 to S$12.55. Venture Corporation was the biggest decliner for the day. The stock, which was trading on a cum-dividend basis, shed 0.6 per cent or S$0.10 to S$17.48.

Wall Street stocks finished lower Tuesday (Mar 28), shrugging off solid consumer confidence data as US Treasury bond yields climbed. The Dow Jones Industrial Average dipped 0.1 per cent to 32,394.25. The broad-based S&P 500 slipped 0.2 per cent to 3,971.27, while the tech-rich Nasdaq Composite Index lost 0.5 per cent at 11,716.08.

Top gainers & losers

Factsheets



EVENTS THIS WEEK

Factsheets


SG

Resale volumes of private condominiums rose for the first time since October 2022, driven by pent-up demand after the Chinese New Year period. Flash estimates from SRX and 99.co on Tuesday (Mar 28) showed that 756 units were resold in February 2023, a 50.3 per cent increase from the 503 units resold in January. However, sales volumes were still 4.2 per cent lower than they were in February 2022 and 4.1 per cent lower than the five-year average volumes for the month of February. SRX and 99.co note that overall condo resale prices rebounded in February, rising 1.4 per cent month on month. On a year-on-year basis, overall condo resale prices rose by 9.2 per cent

Temasek Holdings is considering a US initial public offering of Advanced MedTech Holdings after a planned sale of the medical device maker stalled, according to people with knowledge of the matter. The firm is working with advisers to explore a potential share sale that could raise US$200 million ($265.84 million) to US$300 million, said the people. A listing may take place as soon as next year, one of the people said.

Keppel DC REIT Management has priced EUR50 million ($71.97 million) worth of notes, or “Series 004 Notes” under its $2 billion Multicurrency Debt Issuance Programme. The notes will be issued at a price of 100% of the principal amount, and will be in denominations of EUR100,000 or higher denominations of EUR1,000. Interest on the notes will be payable quarterly. The notes will bear interest at the prevailing three-month Euro Interbank Offered Rate (EURIBOR) with respect to the relevant interest payment date plus an agreed spread. The notes will be issued on April 4, 2023, and will mature on April 4, 2030.

Keong Hong Construction, a wholly-owned unit of Keong Hong Holdings, has secured a S$118 million tender for main contract works at Cecil Street. The tender, awarded by Solitaire Cecil, involves the proposed erection of a 20-storey office building. The construction period is 35 months, commencing in May. The project is not expected to have any material impact on Keong Hong’s earnings per share for the year ending Sep 30.

Hyflux Membrane Manufacturing and Hyflux Engineering have been ordered on Tuesday (Mar 28) to be wound up upon a successful application by the now defunct water treatment firm Hyflux. Tan Kok Quan Partnership, representing Hyflux as the claimant in the winding-up applications, told the High Court that the two Hyflux subsidiaries have not been able to pay the debt it is seeking to recover. Justice Aedit Abdullah noted that no one opposed the petitions to wind up the two Hyflux companies.


US

Facebook owner Meta Platforms is planning to lower bonus pays for some employees, and assess staff performance more frequently. Employees of the social media giant, who get a rating of “met most expectations” in their 2023 year-end reviews, will receive a smaller percentage of bonus and restricted stock award due in March 2024. The bonus multiplier for that grade has been cut to 65 per cent from 85 per cent earlier, and the company will also restart assessing staff performance twice a year.

Alibaba Group Holding is planning to split its business into six main units covering e-commerce, media and the cloud, the company said on Tuesday (Mar 28), adding that each of the units will explore fundraising or initial public offerings. Each of the six will be managed by its own CEO and board of directors.

Micron Technology Inc on Tuesday announced second-quarter results. Revenue fell by about 53% to $3.69 billion and the company lost $2.3 billion, compared with a profit of $2.26 billion a year earlier. The company forecasts third-quarter revenue would tumble nearly 60% from a year earlier to $3.70 billion but the steep drop was in line with Wall Street expectations and company executives painted a rosy outlook for 2025 with artificial intelligence boosting sales. Micron expects to incur a loss of $1.58 per share, excluding items, in the current quarter compared with estimates of 90 cents per share.

Lululemon on Tuesday reported strong holiday-quarter sales. Revenue rose to $2.77 billion (vs $2.7 billion expected) from $2.13 billion a year ago. Fourth-quarter net income fell to $119.8 million from $434.5 million a year ago. Excluding impairment and other charges related to the acquisition of Mirror, as well as other items, EPS were $4.40 (vs $4.26 expected). The company expects fiscal 2023 revenue of between $9.3 billion and $9.41 billion, topping Wall Street’s expectations of $9.14 billion. Lululemon expects full-year profit of between $11.50 and $11.72 per share (vs estimates of $11.26 per share).

Lucid said in a regulatory filing on Tuesday that it plans to cut about 18% of its workforce, or roughly 1,300 employees, as part of a larger restructuring to reduce costs. Lucid said it will incur one-time charges totaling between $24 million and $30 million related to the job cuts, with most of that amount being recognized in the first quarter of 2023. CEO Peter Rawlinson said the job cuts will hit “nearly every organization and level, including executives,” and that affected employees will be notified over the next three days.

Apple on Tuesday introduced Apple Pay Later, which will allow users to split purchases into four payments spread over the course of six weeks. Individuals can apply for Apple Pay Later loans of between $50 and $1,000 and use them for in-app and online purchases made through merchants that accept Apple Pay. Payments have no interest and no fees. Users will be asked to link a debit card as their loan repayment method. Credit cards won’t be accepted.

Microsoft on Tuesday announced a chatbot designed to help cybersecurity professionals understand critical issues and find ways to fix them. The Microsoft Security Copilot draws on OpenAI’s GPT-4. The chatbot can compose PowerPoint slides summarizing security incidents, describe exposure to an active vulnerability or specify the accounts involved in an exploit in response to a text prompt that a person types in. Microsoft isn’t talking about how much Security Copilot will cost when it becomes more widely available.

US officials alleged that former FTX chief Sam Bankman-Fried authorised bribes of at least US$40 million to Chinese officials. The payments came after Chinese officials in early 2021 froze some US$1 billion in cryptocurrency trading accounts controlled by FTX affiliate Alameda. The move amounts to a 13th criminal charge against the former cryptocurrency highflyer

Walgreens Boots Alliance on Tuesday said its quarterly profit declined more than 20%, driven by sharply lower Covid vaccine volumes and test sales compared to last winter, when the Covid Omicron variant surge drove strong demand. Revenue came in higher than Wall Street’s expectations (US$34.86bn vs est. US$33.53bn), rising 3.3% year over year. The company reported a net profit of $703 million compared to $883 million in the same quarter a year ago.

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


RESEARCH REPORTS

PSR Stocks Coverage

Factsheets


Factsheets


For more information, please visit:

https://www.stocksbnb.com/singapore-stocks-coverage/


Upcoming Webinars

Guest Presentation by Vuzix [NEW]

Date: 29 March 2023

Time: 8.30pm – 9.30pm

Register: https://bit.ly/3YWu5C1


Strategy & Stock Picks 2Q2023 (SG)

Date: 1 April 2023

Time: 10am – 12pm

Register: https://bit.ly/40isLdR


Guest Presentation by Materialise NV [NEW]

Date: 4 April 2023

Time: 3pm – 4pm

Register: https://bit.ly/3nc97lB


Strategy & Stock Picks 2Q2023 – Emerging Market

Date: 5 April 2023

Time: 1pm – 2pm

Register: https://bit.ly/40kqfEr


Strategy & Stock Picks 2Q2023 (US)

Date: 6 April 2023

Time: 7.30pm – 9pm

Register: https://bit.ly/3JViH5m


POEMS Podcast:

Research Videos

Weekly Market Outlook: Adobe, Block Inc, NVIDIA, Technical Analysis, SG Banking, SG Weekly & More
Date: 27 March 2023
Click here for more on Market Outlook.
Sign up for our webinars here, and be among the first to receive economy and market updates.

PHILLIP RESEARCH IN 3 MINS

Phillip Research in 3 minutes: #29 Keppel Corporation; Initiation
Click here for more on Phillip in 3 mins.

Follow our Socials

Facebook Social Icon Instagram Icon Twitter Social Icon Youtube Social Icon Linkedin Social Icon TikTok Social Icon Spotify Social Icon

Join our Singapore Equity Research Community on POEMS Mobile 3 App for the latest research reports, market updates, insights and more

Click to join!

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