Daily Morning Note – 4 January 2021


US stocks ended a tumultuous year with the Dow and S&P 500 at records, as the three major US equity indices notched solid-to-spectacular yearly gains despite an economy upended by the Covid-19 virus, as investors looked to a post-pandemic world.

The gains, which sent the Dow and S&P to record highs to close out the year and the Nasdaq to a record earlier this week, were fuelled in part by massive fiscal and monetary stimulus put in place to buttress the economy reeling from the coronavirus fallout, as well as progress on a vaccine.

Still, data on Thursday was a reminder the economy still has a lengthy recovery ahead as weekly initial jobless claims, while declining for a second straight week to 787,000, remained well above the peak of the 2007-2009 Great Recession.

All eyes are on two US Senate races in Georgia this week that will determine control of the chamber and influence Democratic President-elect Joe Biden’s ability to enact his agenda.


Tencent’s online games were removed and then reinstated on Huawei’s app store in a dispute over revenue sharing by the Chinese companies. Huawei was insisting on a 50% cut of Tencent’s game sales on the app store. The games were reinstated on the app store after further negotiations, Tencent said, adding that “both sides will continue to work together to bring better experiences and services to consumers”.

Drugmakers including Pfizer, Sanofi, and GlaxoSmithKline plan to raise US prices on more than 300 drugs in the United States on Jan 1, according to drugmakers and data analysed by healthcare research firm 3 Axis Advisors. The hikes come as drugmakers are reeling from effects of the Covid-19 pandemic, which has reduced doctor visits and demand for some drugs.

Macau casinos ended their worst year on record with little sign of progress in a recovery, though hopes remain for a rebound in the world’s largest gambling hub later in 2021. Gross gaming revenue fell 66 per cent to 7.82 billion patacas (S$1.29 billion) in December from a year earlier, according to data from the Gaming Inspection & Coordination Bureau.

Microsoft said that the far-reaching Russian hack of US government agencies and private corporations went further into its network than the company had previously understood. While the hackers, suspected to be working for Russia’s SVR intelligence agency, did not appear to use Microsoft’s systems to attack other victims, they were able to view Microsoft source code by accessing an employee account, the company said.

Kweichow Moutai said its revenue rose about 10 per cent for 2020, the slowest growth in five years, as the world’s most valuable distiller remains cautious in raising prices of its prized liquor to avoid attention from China’s regulators. Moutai remains an investor darling as its status as China’s national drink and a closely guarded recipe have kept demand strong, even during the coronavirus pandemic.

Keppel Corporation chief executive Loh Chin Hua says he is “cautiously optimistic” about 2021, after what has been a tumultuous year for both the company and the broader global economy. Since the start of October, the company has announced divestments of more than S$1.2 billion. With this, Mr Loh says Keppel is well on its way to meet its asset monetisation programme of S$3 billion to S$5 billion over the next three years.

Property group Metro Holdings is expanding its Singapore footprint through the acquisition of a 26 per cent stake in a portfolio of 14 properties for an investment amount of up to S$76.6 million. The portfolio comprises six industrial properties, one business park, four high-spec industrial properties and three logistics properties.

GSH Corporation has obtained loan facilities of up to S$150 million in an agreement dated Dec 31, 2020, the mainboard-listed property developer announced on Sunday. In a regulatory statement, the company said that the agreement requires that the controlling shareholder Sam Goi Seng Hui and his family including his siblings do not reduce their stakes in GSH to 35 per cent or below.

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


Webinar Of The Week

Market Outlook: (PSR) Keppel (Int.), Dasin, Yoma, SG Banking Monthly, Airbnb IPO & SG Weekly

Date: 07 December 2020

For more on Market Outlook

Updates summarised in 3 minutes

Phillip Research in 3 minutes: #29 – Keppel Corporation; Initiation

For more videos on Phillip in 3 Mins

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 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