DAILY MORNING NOTE | 4 April 2023

Singapore stocks rise as markets leave banking woes behind. Gainers outnumbered losers 374 to 229, with 2.26 billion securities worth S$1.44 billion traded. Genting Singapore was the top gainer on the blue-chip index. Shares of the integrated resort operator rose 4.5 percent or S$0.05 to close at S$1.17. The performance of the trio of local lenders was mixed. DBS and UOB fell 0.1 percent and 0.4 percent respectively, while OCBC gained 0.7 percent.

Wall Street stocks mostly advanced Monday (Apr 3) following weak US manufacturing data that added to concerns about slowing growth though easing worries about more interest rate hikes. The Dow Jones Industrial Average rose 1.0 percent to 33,601.15. The broad-based S&P 500 gained 0.4 percent to 4,124.51, while the tech-rich Nasdaq Composite Index shed 0.3 percent to 12,189.45.

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EVENTS THIS WEEK

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SG

Mainboard-listed telco Singtel announced Monday (Apr 3) that a unit of wholly-owned subsidiary Singtel Optus has priced a A$100 million (S$90 million) five-year fixed rate sustainability-linked bond (SLB) at 4.577percent per annum. Optus Finance, a wholly-owned subsidiary of Singtel Optus, will issue the Australian dollar-denominated SLB on Apr 12. The notes will mature on Apr 12, 2028.

The 10-year average return of the latest Singapore Savings Bonds (SSBs) tranche has fallen after a spike in the yields last month. The May tranche of the SSBs, which opened on Monday (Apr 3), is offering a 10-year average return of 3.07 percent, down from 3.15 percent the month before. The first-year interest rate of 3.03 percent, however, is higher than the April tranche’s 3.01 percent.

Sembcorp Marine (Sembmarine) announced on Monday (Apr 3) its proposal to change its name from Sembcorp Marine Ltd to Seatrium Limited, subject to the approval of shareholders. This comes after the completion of Sembmarine’s merger with Keppel Offshore & Marine on Feb 28. The proposed change of name is subject to shareholders’ approval and will not affect the identity of the company or any of its rights and obligations, nor will it affect any of the rights of shareholders or the group’s daily business operations and financial standing.

US

Rivian Automotive on Monday (Apr 3) missed first-quarter production estimates as the electric-vehicle maker grappled with supply chain constraints, sending its shares down 4 per cent in early trade. The Amazon-backed company had said it stopped its commercial production line for the majority of the first quarter of 2023 to introduce new technologies including lithium iron phosphate (LFP) battery packs. Rivian produced 9,395 vehicles at its Normal plant in the quarter ended March, compared with Visible Alpha’s consensus estimates of 10,030 vehicles. In the fourth quarter, it built 10,020 vehicles. The Irvine, California-based company, however, reiterated its annual production target of 50,000.

Standard Chartered has redeemed a US$1 billion so-called additional tier one (AT1) bond in a move announced before holders of similar securities were wiped out in last month’s rescue of Credit Suisse. The Asia and Africa-focused bank exercised its option to redeem the securities on April 2, it said in a stock exchange filing on Monday (Apr 3), having initially flagged its intention before the recent bout of banking sector turmoil. StanChart did not say in its filing whether it intends to issue a replacement AT1 bond and the bank did not respond immediately to a request for comment.

Oil benchmarks jumped 6 per cent on Monday (Apr 3), the day after the Opec+ group jolted markets with plans to cut more production, raising fears of tightening supplies while some warned of reduced demand if oil refiners flinch at paying higher prices for crude. Brent crude settled higher by US$5.04, or 6.3 per cent, at US$84.93 a barrel, after touching its highest since Mar 7 at US$86.44. West Texas Intermediate crude settled up by US$4.75, or 6.3 per cent, at US$80.42 a barrel after rising to a two-month high during the session.

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


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