Daily Morning Note – 30 November 2021
Asian stocks look set for a steady start after U.S. shares rebounded amid easing concerns about the impact of omicron on the global reopening. Futures for Japan and Australia rose while Hong Kong’s slipped. The S&P 500 wiped out its November losses and the tech-heavy Nasdaq 100 more than recouped Friday’s rout. Ten-year U.S. Treasury yields rose to about 1.5% but are below pre-omicron levels. Crude oil pared a gain of as much as 7% from Friday’s rout, while Bitcoin traded above $58,000, maintaining its recent rally.
Yangzijiang Shipbuilding has proposed a spin-off and listing of the group’s investment segment via the transfer of existing investments to a newly incorporated company that will focus on asset management and direct investments. This will create 2 separate listed companies to pursue more targeted business strategies and accelerate growth, said the group in a bourse filing on Monday (Nov 29).
IHH Healthcare’s third-quarter net profit jumped 77 per cent to RM550 million (S$177.6 million) year on year amid a steady return of patients to hospitals and the continued provision of Covid-19 support services. For the 3 months ended Sept 30, revenue was up 26 per cent to RM4.4 billion while Ebitda increased 32 per cent to RM1.1 billion with stringent cost controls in place, said the group in a press statement on Monday (Nov 29).
Pine Capital has on Nov 26 received a notification of delisting from the Singapore Exchange (SGX), it said in a bourse filing late Monday (Nov 29). The company’s shares will be delisted after an exit offer is made to shareholders and holders of other classes of listed securities to be delisted. The company, however, said it intends to appeal the delisting notice as it has on Nov 22 entered into a non-binding term sheet with Genv Holdings for a subscription of new shares and the proposed acquisition of a new business.
BRC Asia has posted a full-year net profit of S$47 million, up 131 per cent from a year ago, on improved sales volume and higher steel prices. The group has proposed a final dividend of 4 cents per share and a special dividend of 4 cents per share. Including the interim dividend paid out earlier in the year, total dividend for FY2021 stands at 12 cents per share, representing around 61 per cent of earnings. For the 12 months ended Sept 30, revenue rose 91 per cent to S$1.2 billion mainly due to higher sales volume with the pick-up in construction activities, coupled with higher selling prices in tandem with increasing international steel prices, said the group in a bourse filing on Monday (Nov 29).
No Signboard has reported a net loss of S$6.4 million for the year ended Sept 30, narrowing from S$9.8 million a year ago. This translates to a net loss per share of 1.37 cents, compared with 2.13 cents a year ago. Still, total revenue tumbled 42 per cent year on year to S$7.9 million in FY2021 amid the prolonged pandemic. Since February 2020, the group’s topline has been impacted by the decline in a number of customers when Singapore implemented travel entry restrictions on short-term visitors.
LHN Group‘s net profit rose 16.9 per cent to S$28.9 million for the full-year ended Sept 30, 2021, despite a 9.9 per cent slip in revenue from a year ago. This was mainly due to an improvement in the profitability of its space optimisation business (industrial and Singapore co-living segment), facilities management business and logistics services business – along with lowered cost of sales and operating expenses, said the group in a press statement last Friday (Nov 26). It has proposed a final dividend of 1 Singapore cent for FY2021.
Jack Dorsey, the co-founder and chief executive officer of Twitter Inc, is stepping down, ceding the position to the company’s chief technology officer Parag Agrawal. The move is effective immediately, though Dorsey will stay on the board of the social media company until his term expires in 2022, Twitter said in a statement Monday (Nov 29).
Moderna Inc shares jumped 11 percent in US pre-market trading after the company said a new vaccine to fight the omicron strain of the coronavirus could be ready by early 2022 if required. The stock jumped 21 per cent during Friday’s global selloff amid concerns about the new variant, solidifying its position as the top performer on the S&P 500 in the year to date. The company mobilised hundreds of workers on Thanksgiving Day last Thursday in order to start work on Omicron, chief medical officer Paul Burton said at the weekend.
The Omicron variant of Covid-19 could slow the recovery of the US economy and labour market, and heighten uncertainty regarding inflation, Federal Reserve Chair Jerome Powell said in testimony released on Monday. Powell also acknowledged that the factors pushing US inflation higher will “linger well into next year.” The comments in testimony to be delivered to the Senate Banking Committee on Tuesday indicate the Fed chief is growing more concerned about the spike in inflation seen this year, which he has consistently said would be transitory.
Wall Street stocks jumped on Monday, winning back some of the prior session’s losses on hopes that vaccines and therapeutics will limit the impact of the latest Covid-19 variant. Major indices tumbled more than two per cent on Friday on worries the Omicron variant could derail the global economic recovery. But investors appeared less concerned on Monday as vaccine makers Pfizer and Johnson & Johnson signaled they were already working on a potential formula targeted at the new strain.
Source: SGX Masnet, The Business Times, Bloomberg, Channel NewsAsia, Reuters, CNBC, PSR
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