Daily Morning Note – 4 Febraury 2021
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.
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
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.
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
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Date: 2 February 2021
Updates summarised in 3 minutes
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