DAILY MORNING NOTE | 30 May 2023

Technical Pulse Special Series Launch of Thai SDR

Technical Pulse: Airports of Thailand Public Co. (Current Price: THB$70.50)

Analyst: Zane Aw

Support Zone: THB$66.00-70.00 Resistance Zone: THB$73.50-76.50

Airports of Thailand Public Co. (SET: AOT) Potential retest of the rising wedge support.


Technical Pulse: CP All Public Co. Ltd (Current Price: THB$63.50)

Analyst: Zane Aw

Support Zone: THB$58.50-62.50 Resistance Zone: THB$67.00-72.00

CP All Public Co. Ltd (SET: CPALL) Potential retest of the uptrend support line in a consolidation triangle.


Technical Pulse: PTT Public Co. (Current Price: THB$31.00)

Analyst: Zane Aw

Support Zone: THB$29.50-31.00 Resistance Zone: THB$33.00-34.50

PTT Public Co. (SET: PTT) Potential retest of the descending wedge support.



The local stock market ended the first trading day of the week lower, as traders remained cautious despite news of a tentative US debt ceiling deal. Singapore stocks fell 0.4 per cent or 12.17 points to close on Monday (May 29) at 3,195.22. Across the broader market, decliners beat out advancers 305 to 259. Daily turnover came in at about 1.4 billion securities worth a collective S$827.9 million.

The US markets were closed on 29th May 2023 (Monday) in observance of Memorial Day, and will reopen on 30th May 2023. European shares edged lower in light trade on Monday, on losses in technology and bank stocks, while investors assessed the tentative deal reached by US lawmakers to raise the nation’s debt ceiling and avert a default. The pan-European Stoxx 600 index closed 0.1 per cent lower, after logging its strongest one-day gain in nearly two months on Friday.

Top gainers & losers

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EVENTS THIS WEEK

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SG

From May 30, Singapore investors will be able to buy direct exposure to three of Thailand’s largest listed companies, through the newly launched Singapore depository receipts, or SDRs. The three Thai stocks are airport operator Airports of Thailand; food retailer CP All; and energy play PTT Exploration & Production, or PTT E&P. All three are constituents of the benchmark SET50 Index. Airports of Thailand has a weightage of 8 per cent of the SET50; while CP All and PTT E&P each have a weightage of 5 per cent.

Investment holding firm GK Goh Holdings will delist on Jun 5 after a successful privatisation bid, a bourse filing on Monday (May 29) indicated. The move comes a month after offerer Verveine received 95 per cent of valid acceptances for its bid to take the mainboard-listed company private for S$1.26 per share in cash. Verveine is a special purpose vehicle owned by GK Goh’s founder and chairman, and its managing director.

Luxury watch retailer Cortina saw an 11 per cent fall in its net profit to S$38.6 million for H2 ended Mar 31, with its bottom line weighed by a one-off write-back. The company’s revenue for the half-year had increased 7 per cent to S$419.7 million, thanks to a better sales mix and its strategy to introduce new brands, such as Jacob & Co, Laurent Ferrier and Parmigiani, Cortina said in its earnings report on Monday (May 29). However, the company also had a one-off write-back of stock provision, as an exchange of inventory in the prior year was not present in the latest H2 period. Cortina’s operating expenses were also up 2.3 per cent to S$84.5 million, which it attributed to higher rental expenses with its new store, as well as charitable donations for its 50th anniversary.

Consumer electronics retailer Challenger Technologies after market close on Monday (May 29) requested for a halt in trading of its shares with immediate effect, pending the release of an announcement. In February, the mainboard-listed company reported a net profit of S$5.1 million for the six months ended Dec 31, 2022, down 40 per cent from the year-ago period’s S$8.4 million. The plunge in profits was primarily due to the fair value loss on investment, reduced pandemic-related government wage supports and higher operating expenses, Challenger said then.

In-flight caterer and ground handler Sats on Monday (May 29) reported earnings of S$6 million for the six months ended March 2023, down 16.7 per cent year on year as expenditures exceeded revenue and inflation started to bite. This comes despite a 57.1 per cent increase in revenue to S$953.8 million in the second half of FY2023 from S$607.3 million in H2 FY2022 – partly on the back of a recovery in aviation, said the group in a bourse filing.

Curry puff specialist Old Chang Kee’s net profit rose 52.6 per cent to S$3.5 million for H2 ended Mar 31, thanks to higher sales. The company on Monday (May 29) posted an 18.4 per cent increase in revenue for the half year to S$46.1 million, aided by higher sales across the retail, non-retail and catering segments, with the continued reopening of Singapore’s economy. This comes even as its number of Singapore outlets dropped to 79, from 83 as at end-March 2022.


US

Oil prices edged higher in choppy trading on Monday, as markets weighed a tentative US debt ceiling deal that would avert a default by the world’s top oil consumer against further Federal Reserve interest rate hikes that could curb energy demand. Brent crude futures settled up 12 cents, or 0.2 per cent, to US$77.07 a barrel, while US West Texas Intermediate crude was up 25 cents, or 0.3 per cent, at US$72.92 a barrel. Both benchmarks flip-flopped between positive and negative territory.

Gold prices edged lower on Monday as a tentative deal sealed over the weekend to suspend the U.S. debt ceiling coupled with jitters around higher-for-longer interest rates dampened demand for the non-yielding metal. Spot gold was down 0.1% at $1,944.09 per ounce by 0252 GMT, hovering near two-month lows hit on Friday. U.S. gold futures were listless at $1,943.30.

General Motors and Posco Future M have secured half of the financing for a C$600 million (S$597 million) electric-vehicle (EV) battery component plant in Quebec from the provincial and federal governments. The governments of Canada and Quebec will each contribute around C$150 million to the project, which is expected to create 200 jobs. The plant is scheduled to be in operation within two years. The carmaker has committed to invest US$35 billion in electric and autonomous vehicles between 2020 and 2025.


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


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