DAILY MORNING NOTE | 30 November 2023
**Do note that the last day of Morning Note Issuance will be on 14 December 2023. Morning Note will resume in January 2024**
Summary of Trades Initiated in Past Week
Singapore shares ended higher on Wednesday (Nov 29), tracking gains on Wall Street as equities got a boost from dovish comments by a Federal Reserve official. Singapore stocks rose 0.6 per cent or 18.76 points to 3,084.70. Across the broader market, gainers outnumbered losers 310 to 278, after 993.1 million securities worth S$926 million changed hands. The Nikkei 225 lost 0.3 per cent, the Hang Seng Index fell 2.1 per cent, while the Kospi Composite Index and the FTSE Bursa Malaysia KLCI each dropped 0.1 per cent.
Wall Street stocks finished mixed on Wednesday, extending a choppy week of trading following government data that upgraded US economic growth in the third quarter. The world’s biggest economy saw GDP growth of 5.2 per cent at an annual rate in the July to September period, due to higher investment and government spending than originally expected. The initial estimate put growth at 4.9 per cent. The Dow Jones Industrial Average finished up less than 0.1 per cent at 35,430.42. The broad-based S&P 500 slipped 0.1 per cent to 4,550.58, while the tech-rich Nasdaq Composite Index dropped 0.2 per cent to 14,258.49.
Keppel Corporation has agreed to acquire an initial 50 per cent stake in Aermont Capital, for a consideration of up to 356.9 million euros (S$521.8 million), the asset manager and operator announced on Wednesday (Nov 29). This includes a deposit upon entering the agreement, a closing amount, and post-closing adjustments. It plans to subsequently acquire the remaining shares in the European real estate manager, for a maximum of 575 million euros. That brings the maximum consideration for the acquisition to 931.9 million euros. The base of the consideration is contingent on Aermont’s performance, said Keppel, adding that the two have yet to agree on a multiple which would determine the price of the acquisition.
Econ Healthcare has announced its proposed acquisition of Ambulance Medical Service (AMS), an emergency ambulance and medical transport operator in Singapore, for an aggregate consideration of $8.8 million on Nov 29. According to Econ Healthcare, its acquisition of AMS, which has over 15 years of expertise in the industry, marks a significant milestone for the company in its efforts to further strengthen its suite of healthcare services and ecosystem of care. As at Nov 29, AMS manages a fleet of 57 ambulances. Its key market segments include provision of 24/7 ambulance transport services for both emergency and non-emergency cases, medical standby and coverage at events. Based on AMS management accounts as at June 30, the book value of its issued capital stood at $11.0 million.
Interra Resources has announced that it has been granted a 12-month extension by Singapore Exchange Securities Trading (SGX-ST) to meet the criteria required to be removed from the SGX watch-list. For its FY2022, the oil producer recorded a consolidated pre-tax profit, fulfilling part of the exit criteria. However, as at Nov 6, the company had not had an average daily market capitalisation of $40 million or more over the last six months. The waiver granted to Interra Resources expires on Dec 4, 2024. Shares in Interra Resources closed unchanged at 3.6 cents on Nov 29.
Oil prices rose more than US$1 a barrel on Wednesday as investors focused their attention on expectations of fresh supply cuts from Opec+ and looked past a jump in US crude, petrol and distillate stockpiles. Brent crude futures advanced by US$1.42, or 1.7 per cent, to settle at US$83.10 a barrel, while US West Texas Intermediate (WTI) crude futures gained US$1.45, or 1.9 per cent, to settle at US$77.86 a barrel. Members of Opec+, which includes the Organization of Petroleum Exporting Countries and its allies such as Russia, are due to hold a policy meeting on Thursday. Talks ahead of the meeting were focusing on additional cuts, although details were yet to be agreed, sources close to the group told Reuters.
Salesforce added 7% after releasing third-quarter adjusted earnings of $2.11 per share, higher than the $2.06 per share analysts polled by LSEG were expecting. The firm’s third-quarter revenue of $8.72 billion fell in line with expectations. Salesforce on Wednesday raised its fiscal 2024 forecast for operating cash flow growth to 33% from 30%. It also said revenue for the fiscal fourth quarter will increase about 10% to between $9.18 billion and $9.23 billion. Analysts were expecting revenue of $9.21 billion, according to LSEG.
Snowflake stock rallied more than 7% after its third-quarter earnings beat analyst expectations. The cloud company reported adjusted earnings of 25 cents per share on $734 million of revenue, higher than the anticipated 16 cents per share on $713 million analysts were expecting, according to LSEG. The company also released fourth-quarter product revenues guidance above consensus estimates.
Source: SGX Masnet, Bloomberg, Channel NewsAsia, Reuters, CNBC, WSJ, The Business Times, PSR
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