Daily Morning Note – 30 June 2021
The S&P 500 index hit a record high shortly after the open on Tuesday, lifted by big US banks, while investors looked to consumer confidence data against the backdrop of rising inflation and a spike in Covid-19 cases in Asia.
The S&P 500 gained 8.65 points, or 0.20 per cent, to record high of 4,299.26. The Dow Jones Industrial Average rose 166.06 points, or 0.48 per cent , to 34,449.33, while the Nasdaq Composite lost 5.31 points, or 0.04 per cent, to 14,495.20.
UOB has lost a long-running legal tussle against developer Lippo Marina Collection (LMC), with the Singapore High Court throwing out the bank’s claims that Lippo had inflated mortgages to get higher housing loans. The bank said it will be appealing the court’s decision. It is seeking to recover about S$181 million disbursed to purchase 38 units at Marina Collection, a luxury condo at the wealthy enclave at Sentosa Cove. UOB is represented by lawyers from Tan Kok Quan Partnership.
Singapore has inked a deal with drug-maker GlaxoSmithKline Singapore and clinical-stage immunology firm Vir Biotechnology for the supply of a medication for patients with mild to moderate Covid-19. The advance purchase agreement is for the supply of sotrovimab, an investigational single-dose monoclonal antibody administered through intravenous infusion, GSK Singapore said in a statement on Wednesday.
Sembcorp Marine (Sembmarine) on Tuesday said it is partnering grid operator SP Group to install an additional 4.0 megawatt-peak (MWp) of solar energy across seven rooftops at its Tuas Boulevard Yard. The new solar panels, together with existing solar panels that were installed in 2018, will supply nearly 60 per cent of power for the yard’s steel fabrication facility during peak production periods, both companies said in a press statement.
Ecowise Holdings chief executive Lee Thiam Seng has said that he welcomes the SGX RegCo’s compliance notice served to the Catalist-listed company last Friday, and will extend his fullest support to the company auditor and continuing sponsor to comply with the requirements. In a statement released on Tuesday, Mr Lee said the compliance notice validates his concerns over the company’s internal controls and the release of its H1 2021 results despite his reservations as to their accuracy.
Suntec Reit is divesting a portfolio of strata units at Suntec City Office for S$197 million and acquiring a Grade-A office building in London for £353 million (S$667.2 million), the Reit manager ARA Trust Management (Suntec) said on Tuesday. The Suntec City Office units are being divested at an 8.9 per cent premium over the independent valuation of S$180.9 million for the 78,491 square feet of space, with a net gain on divestment of S$13.9 million. The net property income yield was 3.1 per cent.
The troubled US newspaper sector cut thousands more jobs as circulation losses extended in a pandemic year, but saw some positive signs with growth in digital readers, a Pew Research Centre report showed Tuesday. As part of its annual assessment of the media, Pew researchers found losses of some 12 per cent of newsroom jobs, or some 4,000 reporters, editors or photographers in 2020, to bring total employment to 30,820 at the end of the year.
Wall Street stocks edged higher on Tuesday, adding to recent records, as US consumer confidence continued to improve while investors grapple with the latest coronavirus worries. US consumer confidence surged in June to its highest point since the start of the pandemic, propelled by the improved outlook on jobs and business conditions, according to The Conference Board. “Low virus transmission, vaccinations, and expanded reopenings made consumers much more confident,” Oren Klachkin of Oxford Economics said in an analysis. “Consumers are coming out of their shell.”
US consumer confidence soared in June to a fresh pandemic high as Americans became more upbeat about the economy and job market. The Conference Board’s index increased to 127.3 from an upwardly revised 120 reading in May, according to a report Tuesday. The June figure exceeded all forecasts in a Bloomberg survey of economists. Consumers also expected inflation to pick up in the coming year.
Moderna’s Covid-19 vaccine showed promise against the Delta variant first identified in India in a lab study, with a modest decrease in response compared to the original strain, the drugmaker said on Tuesday. The study was conducted on blood serum from eight participants obtained one week after they received the second dose of the vaccine, mRNA-1273.
Oil prices steadied on Tuesday as broad hopes for a demand recovery persisted, fueled by comments from Opec’s secretary general, slightly overshadowing travel curbs due to new outbreaks of the highly contagious Delta variant of the coronavirus. Brent crude futures settled up 8 cents, or 0.1 per cent, at US$74.76 a barrel, having slumped by 2 per cent on Monday. US West Texas Intermediate (WTI) crude futures settled up 7 cents, or 0.1 per cent, at US$72.98 a barrel, after a 1.5 per cent retreat on Monday.
Source: SGX Masnet, The Business Times, Bloomberg, Channel NewsAsia, Reuters, CNBC,PSR
NanoFilm Technologies International Ltd
Analyst: Chua Wei Ren
Recommended Action: Technical BUY
NanoFilm Technologies (SGX: MZH) upside is expected to continue after the first set of Elliott wave 1 of the intermediate phase has been completed. Furthermore, the ABC regular corrective flat is likely to be completed after the technical and price action indicates.
Buy stop: 5.47 Stop loss: 4.58 Take profit 1: 6.60 Take profit 2: 7.75
HK Reports – Read up on our Hong Kong reports here
Webinar Of The Week
Date: 22 June 2021
Updates summarised in 3 minutes
|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.|
|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.|