DAILY MORNING NOTE | 31 January 2024

Trades Initiated in the past week

Factsheets


Singapore shares ended higher on Tuesday (Jan 30), mirroring overnight gains over in the US market. Singapore stocks were up 0.3 per cent or 9.73 points to 3,150.04. Across the broader market, losers outnumbered gainers 333 to 251, after 1.6 billion securities worth S$1.1 billion changed hands. The Hang Seng Index fell 2.3 per cent, the Kospi Composite Index lost 0.1 per cent, and the FTSE Bursa Malaysia KLCI ended 0.2 per cent lower. Meanwhile, the Nikkei 225 gained 0.1 per cent.

US stocks finished mixed on Tuesday (Jan 30) ahead of the Federal Reserve’s interest rate decision, where traders and analysts will be looking for clues on when the central bank could start cutting rates. The Fed is almost certain to keep its key lending rate on hold Wednesday for a fourth straight meeting, as it continues its fight to return inflation to its long-run goal of 2 per cent. On Wall Street, the Dow Jones Industrial Average rose 0.4 per cent to finish the day at 38,467.31. The broad-based S&P 500 slipped 0.1 per cent to 4,924.97, and the tech-rich Nasdaq Composite fell 0.8 per cent to 15,509.90.

Top gainers & losers

Factsheets


Events Of The Week

Factsheets


SG

Keppel Pacific Oak US Reit’s portfolio valuation as at Dec 31, 2023, fell 6.8 per cent to US$1.3 billion, from US1.4 billion previously, based on the latest independent valuation. This comes as the real estate investment trust’s (Reit) manager announced that its financial results for the second half and full year ended Dec 31, 2023, will be released at a later date. Its results were originally set to be released on Jan 31. The manager said in a separate bourse filing on Tuesday (Jan 30) that four of the Reit’s 13 properties – The Plaza Buildings, Westmoor Centre, Bellevue Technology Centre and Iron Point – contributed to approximately 84 per cent of the portfolio’s valuation decline.

Frasers Logistics & Commercial Trust (FLCT) leased 128,000 sq m of space across its portfolio in the first quarter ended Dec 31, with a portfolio occupancy rate of 95.8 per cent. The leased space includes the 62,000 sq m lease at the newly completed Ellesmere Port in North West England in the UK, FLCT said in a business update on Tuesday (Jan 30). For Q1, FLCT recorded positive rental reversions of 11.6 per cent on an incoming versus outgoing basis, and 18.2 per cent on an average versus average basis. The “positive leasing momentum” has reduced FY2024 expiries from 8.7 per cent as at Sep 30, 2023, to 7 per cent as at Dec 31, it added.

Singtel is not exploring transactions that involve the enterprise business of its Australian unit Optus, it said in response to a report by the Australian Financial Review (AFR). “No transaction relating to the Optus enterprise business is currently being contemplated,” Singtel said in a bourse filing late on Tuesday (Jan 30) evening. Earlier in the day, the AFR published a report titled Singtel weighs options for Optus; eyes on enterprise division. The article said, citing sources, that Optus executives have considered divestments over the past two years to help Singtel take some money off the table, and that one option is divesting Optus’ enterprise and business division.


US

Oil prices rose on Tuesday (Jan 30) as a higher global economic growth forecast and escalating tensions in the Middle East offset concerns around Chinese demand. March Brent crude futures, which expire on Wednesday, rose 47 US cents to settle at US$82.87 a barrel. The more active April contract settled up 67 US cents at US$82.50. US West Texas Intermediate crude settled up US$1.04, or 1.35 per cent, at US$77.82.

Microsoft shares moved 2% lower in extended trading on Tuesday after the software maker issued fiscal second-quarter results that outdid analysts’ estimates. Microsoft’s revenue increased 17.6% year over year in the year, which ended on Dec. 31, according to a statement. Net income, at $21.87 billion, or $2.93 per share, increased from $16.43 billion, or $2.20 per share. The company’s Intelligent Cloud segment produced $25.88 billion in revenue, up 20% and above the $25.29 billion consensus among analysts surveyed by StreetAccount. Within that segment, revenue from Azure and other cloud services grew 30%. Analysts polled by CNBC had expected 27.7% growth, and the StreetAccount consensus was 27.5%. The metric for the previous quarter was 29%.

Alphabet shares slid more than 6% in extended trading on Tuesday after the company reported ad revenue that missed analysts’ estimates. Alphabet reported its fastest quarter for revenue growth since early 2022, with sales climbing 13% from $76.05 billion a year earlier, the company said in a statement. However, ad revenue of $65.52 billion trailed analyst estimates of $65.94 billion, according to StreetAccount. YouTube, which has been helping to drive accelerated growth, came in just shy of expectations. Google Cloud remains a growth engine, with 26% expansion in the fourth quarter compared to a year ago. Net income jumped 52% in the fourth quarter to $20.7 billion, or $1.64 per share, from $13.6 billion, or $1.05 per share, a year earlier.

Chipmaker Advanced Micro Devices forecast first-quarter revenue below Wall Street estimates on Tuesday, but projected strong sales for its artificial intelligence (AI) processors. Revenue for the fourth quarter came in at $6.17 billion versus the consensus estimate of $6.12 billion. The data center segment revenue, which includes its AI server chips, grew 38% from a year ago to $2.3 billion. Net income in the fourth quarter was $667 million, or $0.41 per share, versus $21 million, or $0.01 per share a year ago. For the first quarter, AMD said it expects about $5.4 billion in sales, plus or minus $300 million, while analysts were looking for revenue of $5.73 billion. AMD added that it expected some of its major businesses, including PC chips, to decline sequentially during the quarter. It said that its data center revenue would be flat as server CPU declines would be offset by AI GPU sales. AMD forecast $3.5 billion worth of AI chip sales in 2024, above its prior forecast of $2 billion.

Payments firm PayPal Holdings is planning to cut about 2,500 jobs, or 9 per cent of its global workforce, this year, a letter from CEO Alex Chriss, seen by Reuters, showed on Tuesday (Jan 30). In the letter to staff, newly appointed CEO Chriss said the decision was made to “right-size” the company through both direct cuts and the elimination of open roles throughout the year. The staff that will be affected are expected to be notified by the end of the week.

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

Corporate Insights by AIMS APAS REIT

Date & Time: 1 February 2024 | 12pm – 1pm

Register: http://tinyurl.com/jbvphczb


Corporate Insights by Keppel DC REIT

Date & Time: 1 February 2024 | 3pm – 4pm

Register: http://tinyurl.com/mr2ypw7n


Corporate Insights by MoneyHero Group

Date & Time: 6 February 2024 | 12pm – 1pm

Register: http://tinyurl.com/32yjvzpf


Corporate Insights by Emperador Inc. [NEW]

Date & Time: 7 February 2024 | 12pm – 1pm

Register: http://tinyurl.com/5anfpasu


Corporate Insights by Resources Global Development Limited [NEW]

Date & Time: 8 February 2024 | 12pm – 1pm

Register: http://tinyurl.com/5n7yejd3


POEMS Podcast:

Research Videos

Weekly Market Outlook: Tesla, Netflix, Suntec REIT, Tech Analysis, SG Weekly & More!
Date: 29 January 2024
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