Daily Morning Note – 31 May 2022


Welcome to our Daily Morning Note from our Research team!


Stocks and US futures trimmed their advance and European bonds tumbled after hotter-than-expected German inflation numbers added to pressure for action from central bank policymakers to tame rising prices.

European equities pared a fourth day of gains, still on course for the longest winning streak since March. Luxury stocks outperformed Monday as China’s reopening plans boosted sentiment. Shares in theater chain operator Cineworld Group Plc soared after the movie “Top Gun: Maverick” topped the Memorial Day weekend box office. Bitcoin posted its biggest gain in two weeks, rising above $31,000 for the first time since May 16.

Nasdaq 100 contracts and S&P 500 futures rose in a sign the bounce in US stocks may have further to run after Wall Street’s best week since November 2020. The S&P 500 wiped out its May losses and snapped a string of seven weekly declines as institutional investors rebalanced portfolios into the end of the month.

The dollar slipped for a third day versus major peers as havens lost their appeal amid the slightly improved mood. Cash Treasuries aren’t trading because of the Memorial Day holiday.

Stocks to watch: SATS

Top gainers & losers




More than a third of the blue-chip counters on the Straits Times Index (STI) have registered double-digit total returns in the year to date. Leading the constituent stocks is Sembcorp Industries, which has registered a total return – including reinvested dividends – of 44 per cent so far this year. Another 10 – Jardine Cycle & Carriage (Jardine C&C), Yangzijiang Shipbuilding, Keppel Corp, City Developments Limited (CDL), CapitaLand Investment (CLI), Singtel, SATS, ST Engineering, UOB and Singapore Airlines – logged total returns of between 10.2 and 42.7 per cent. Of the 30 STI constituent stocks, two-thirds have managed to generate positive total returns.

Food solutions and gateway services provider SATS on Monday (May 30) reported earnings of S$7.2 million for the second half of FY21-22 ended March, compared to a net loss of S$2 million in the corresponding period a year ago. Earnings per share rose to 0.6 Singapore cent for H2, compared to a loss per share of 0.2 cent in the year-ago period. H2 revenue was up 14.7 per cent to S$607.3 million, as travel continued to recover with the easing of border restrictions. Food solutions revenue increased by 10.8 per cent to S$330.6 million, while gateway services revenue grew 19.5 per cent to S$275.2 million. However, expenditure soared 29.8 per cent to S$653.9 million as the group ramped up operations to support the travel recovery.

The battle for property player Hwa Hong Corporation is an intergenerational dispute among the members of its controlling family, the Ong family. According to a report by Lianhe Zaobao, the disputes within the Ong family date back over a decade, with the current battle centred on former group managing director Ong Choo Eng’s privatisation offer for the property company. Hwa Hong founder Ong Chay Tong had 2 wives and 6 sons. His sons and their families are all shareholders of Hwa Hong, with their shareholdings as follows: Ong Mui Eng with an 8.4 per cent stake; Ong Kwee Eng with 5.5 per cent; Ong Choo Eng with 13.8 per cent; Steven Ong with 16.2 per cent, Ong Hian Eng with 4.6 per cent; and Ong Hoo Eng with 5.5 per cent.

Yangzijiang Financial (YZJFH), the Yangzijiang Shipbuilding spin-off, announced May 30 that it is upping its dividend payout policy. The board said it intends to increase the amount of dividends paid to shareholders – either as an annual dividend or interim dividend – to at least 40 per cent of the group’s net profit after tax, excluding non-recurring, one-off and exceptional items. This will be for the next 3 financial years up to FY2024. The announcement comes a week after the company on May 23 proposed a mandate to allow it to buy back up to 10 per cent of its own issued ordinary share capital.

Semiconductor manufacturer Micron Technology has appointed Singtel to deploy its 5G millimetre wave (mmWave) solutions with localised edge core at its 3D NAND flash memory fabrication plant in Singapore. This is the first time a company in Singapore is piloting 5G by deploying an mmWave campus solution with edge core on-premises for industry 4.0 manufacturing applications. “This industry-first deployment proves that 5G networks can be used for high-precision quality control and manufacturing operations which previously was not possible with the limitations of Wi-Fi,” said Bill Chang, Singtel’s chief executive officer of Group Enterprise. Singtel’s 5G mmWave network supports massive bandwidth of up to 2 Gbps with ultra-low latency.


The US dollar resumed its slide on Monday (May 30) as risk appetite across markets tentatively strengthened, supported by encouraging economic data and bets that the Federal Reserve will tighten policy at a slower pace. The dollar index – which tracks the greenback against six major rivals – is on track for its first monthly drop in 5, as the safe-haven currency loses steam after a breakneck start to the year. The dollar index is on track for a more-than 1.5 per cent drop in May – although it remains up about 6 per cent on the year. It was last down 0.2 per cent on the day at 101.510. Trade was likely to be light through Monday as US stock and bond markets close for the Memorial Day public holiday.

The US central bank needs to keep raising interest rates in big steps until inflation starts to come down, Federal Reserve governor Christopher Waller said Monday (May 30). The Fed early this month announced the biggest increase in the benchmark interest rate since 2000, following a smaller hike in March, as it aims to tamp down the highest inflation in more than 40 years. Waller said he supports more half-point rate hikes “for several meetings.” “I am not taking 50 basis-point hikes off the table until I see inflation coming down closer to our 2 per cent target,” he said in a speech prepared for delivery to a monetary policy conference at Goethe University.

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

POEMS Podcast: Let the Money Talk


Money Never Sleeps – Ep 10

Recent Podcasts:

Money Never Sleeps – Ep 9

SGX Company Insights Ep 51 – Keppel DC REIT


Visit www.stocksbnb.com to view our research reports!



Join our Phillip Securities Research Telegram channel for the latest update on our stock coverage!

Click the link to join: https://t.me/stocksbnb

HK Reports – Read up on our Hong Kong reports here



Weekly Market Outlook: Salesforce, TDCX, OIO, Metro, Valuetronics, Netlink NBN Trust, Singtel & More

Date: 30 May 2022

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 minutes: #29 – Keppel Corporation; Initiation

Click here for more videos on Phillip in 3 Mins

For any research-related matters, email: research@phillip.com.sg

For general enquiries, email: talktophillip@phillip.com.sg
or call 6531 1555.

Read the research report(s), available through the link(s) above, for complete information including important disclosures Important Information


The information contained in this email is provided to you for general information only and is not intended to create any binding legal relation. The information or opinions provided in this email do not constitute investment advice, a recommendation, an offer or solicitation to subscribe for, purchase or sell any investment product. 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 should obtain advice from a financial adviser before making a commitment to invest in any investment product or service. In the event that you choose not to obtain advice from a financial adviser, you should assess and consider whether the investment product or service is suitable for you before proceeding to invest.

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.



    POEMS 3 App



    Call Back



    Chat with us

Contact us to Open an Account

Need Assistance? Share your Details and we’ll get back to you


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