Daily Morning Note – 4 Febraury 2021
PHILLIP SUMMARY
U.S. stock futures opened higher after a rally fizzled in the regular session with earnings continuing to roll in, while Asian equity contracts pointed to a muted start. Treasuries fell and crude oil extended its advance. Futures dipped in Japan and Hong Kong, while Australian shares opened flat. S&P 500 contracts were up 0.3% after the gauge pared earlier gains to close barely in the green following its biggest two-day rally in almost three months, while the Nasdaq 100 finished lower. Google’s parent Alphabet Inc. hit a record on stellar results, while Amazon.com Inc. slumped.
BREAKING NEWS
Amazon.com Inc. breached the $1 billion-a-day revenue mark in 2020, in another example of how the company’s massive growth and market dominance has made its stock a near-unanimous favorite on Wall Street. The e-commerce giant’s fourth-quarter results brought full-year revenue to $386 billion. According to an analysis of Bloomberg data, Walmart Inc. is the only other U.S. company with a $1 billion daily sales average, though Exxon Mobil has hit it in the past.
>strong>Toyota Motor Corp. is tapping a star Silicon Valley roboticist to help put the final touches on an operating system it says will go up against Tesla Inc.’s. Called Arene, the system allows new features to be installed in a car’s existing hardware over the air and provides a platform for developers to create software. It’s being developed by Toyota’s new technology research arm Woven Planet Holdings Inc., led by Chief Executive Officer James Kuffner, a former Google engineer.
Chinese e-commerce giant Alibaba Group plans to raise up to US$5 billion through the sale of a US dollar-denominated bond, according to a marketing term sheet seen by Reuters on Wednesday. The book for the offering will open on Thursday and the deal is expected to be priced on the same day, said a person with direct knowledge of the matter, who declined to be named as he was not authorised to speak to the media.
MAINBOARD-LISTED property and retail player Wing Tai Holdings’ saw its net profit rise by 73.1 per cent to S$56.8 million for the half year ended Dec 31, 2020, thanks to higher contribution from its development properties. Its bottom line jumped to S$56.8 million from S$32.8 million for the corresponding period a year ago, on the back of a 32.7 per cent increase in revenue. Revenue rose to S$243.4 million, up from S$183.5 million a year earlier, mainly attributable to the additional units sold in Le Nouvel Ardmore and the progressive sales recognised from The M @ Middle Road. Both are condominium projects in Singapore. It did not elaborate on the total or additional units moved.
MAINBOARD-LISTED entertainment group mm2 Asia has proposed a renounceable underwritten rights issue of one rights share for every one existing share held, at 4.7 Singapore cents for each rights share, it said in an exchange filing on Wednesday. The issue price of 4.7 Singapore cents per rights share represents a discount of around 60.8 per cent to the closing price of 12 Singapore cents per share on Monday, being the last trading day prior to the announcement. It is also a 43.7 per cent discount to the theoretical ex-rights price of 8.35 cents, based on the closing price on Monday. Upon the completion of the rights issue, the company will receive net proceeds of around S$52.2 million; the funds will be used to pay off the medium-term note due on April 27, and for general working capital and operations of the group.
Source: SGX Masnet, The Business Times, Bloomberg, Channel NewsAsia, Reuters, PSR
TECHNICAL REPORTS
Xiaomi Corp
Analyst: Chua Wei Ren
Recommended Action: Technical SELL
Xiaomi Corp (HKEX: 1810) bullish call based on 26th Jan lacks the momentum to bring the stock on the strong bullish side. Instead, technical is showing further downside correction.
>> Read more Technical reports
RESEARCH REPORTS
Singapore Banking Monthly – Biding time
Recommendation: Neutral (Maintained); Analyst: Tay Wee Kuang
– January interest rates were similar to 4Q20 averages.
– Loans shrank 1.98% YoY in December, but improved 0.3% MoM in their second consecutive month of growth.
– SGX’s capital-market SDAV/DDAV grew 20%/4% YoY in January, sustaining their pace in 1H21.
– Remain NEUTRAL. Our pick for sector exposure is SGX (SGX SP, ACCUMULATE, TP: S$11.01) as we expect greater contributions from new businesses.
HK Reports – Read up on our Hong Kong reports here
Webinar Of The Week
Market Outlook: : (PSR) Keppel Corp, Keppel DC REIT, Phillip on the Ground, SG Weekly & Phillip Absolute 10
Date: 2 February 2021
Updates summarised in 3 minutes
Phillip Research in 3 minutes: #29 – Keppel Corporation; Initiation
For more videos on Phillip in 3 Mins
| 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. |
