Daily Morning Note – 4 January 2022
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Asian stocks are set to open cautiously on Tuesday with investors assessing the spread of Omicron and an uncertain outlook for the new year. The S&P 500 Index closed at a record high on the first trading day of 2022 and Treasuries extended losses. Markets trade for the first time this year in Japan, China and Australia, where equities edged higher at the open. U.S. futures wavered after the Nasdaq 100 outperformed. Tesla Inc. surged as the carmaker navigated supply-chain disruptions to report blowout deliveries for the fourth quarter. Apple Inc. gained, giving it a $3 trillion market value. The U.S. gains followed European stocks which hit unprecedented highs even as trading volumes remained light because of holidays. Benchmark Treasury yields climbed across the curve. The 10-year note topped 1.60% in its worst start to a year since 2009 as investors braced for Federal Reserve interest-rate hikes in 2022. The dollar gained. Hong Kong shares will be closely watched after their worst start to a year since 2019 amid weak sentiment for local tech shares and ongoing concerns about the financial health of Chinese developers. An index of companies with most of their business in China which trades in the U.S. was steady Monday.
Ang Wei Neng, the chief executive of ComfortDelGro’s taxi business, will resign from his position to pursue another career path, the transport company announced on Monday (Jan 3) evening. His last day in the role will be April 1. He will be replaced by Jackson Chia, who is currently group chief sustainability officer and chief executive of ComfortDelGro’s private mobility unit. Chia will helm the taxi business concurrently with his existing portfolio.
Operations at Geo Energy Resources have hit a snag as the Indonesian Ministry of Energy and Mineral Resources imposed a temporary ban on all coal export sales by Indonesian coal miners for the whole of January. In a bourse filing on Monday (Jan 3), the company, which engages in mining, production and trading of coal, said the ban was due to concerns over critically low inventories at domestic power plants in Indonesia.
Golden Energy Mines (GEMS), a unit of mainboard-listed Golden Energy and Resources (Gear), does not expect its plans for 2022 to be hit by Indonesia’s temporary ban on coal exports.
The sale and purchase agreement between mm2 Asia and local investment firm Kingsmead Properties for the former’s cinema business has fallen through, the entertainment company announced on Monday (Jan 3). Kingsmead has chosen to exercise its exchange right, and will instead exchange its deposit of S$6 million into 75 million newly issued mm2 shares at a share price of S$0.08 per share.
Environmental services company China Everbright Water has bagged a wastewater treatment project at the Ji’nan International Centre for Medical Sciences in Shandong, China worth 319.5 million yuan (S$67.8 million). The company will mainly provide wastewater treatment services for the municipal wastewater generated in the Taipinghe, Meili and Emei areas within the Ji’nan Medical Centre area, the mainboard-listed company said on Monday (Jan 3).
Prices of private homes and Housing Board (HDB) resale flats accelerated in the final quarter of 2021 to cap off a robust year, the government’s flash estimates showed on Monday (Jan 3). The private residential property index and the HDB resale price index both rose for the seventh straight quarter in Q4 2021, and at a quicker pace than in the previous 3 months. On a full-year basis, both indices also recorded the fastest annual growth since 2010.
Tesla is opening a showroom in China’s Xinjiang region, where several nations and international groups say more than 1 million Uyghur Muslims have been held in internment camps. The electric vehicle maker run by Elon Musk, the world’s richest person and now worth more than $300 billion, revealed its new outpost a week after President Joe Biden signed a U.S. law banning imports from the region unless companies can prove the materials were not made through forced labor.
Digital Realty Trust Inc. said it agreed to acquire a majority stake in Teraco Data Environments Pty, Africa’s largest data-center operator, from private equity owners Permira and Berkshire Partners. A transaction values Johannesburg-based Teraco at about $3.5 billion, Digital Reality said Monday in a statement confirming an earlier Bloomberg News report.
Airlines warned of increased flight delays after AT&T and Verizon Communications brushed aside a US government request to postpone new 5G service that aviation interests say risks safety because it may interfere with aircraft electronics. The two wireless companies on Sunday said the request from Transportation Secretary Pete Buttigieg and Steve Dickson, administrator of the Federal Aviation Administration, would be “to the detriment of” millions of mobile customers. The companies said they might offer a six-month pause near some airports.
The United States will issue new rules and US$1 billion in funding this year to support independent meat processors and ranchers as part of a plan to address a lack of “meaningful competition” in the meat sector, President Joe Biden said on Monday. The initiative comes amid rising concerns that a handful of big beef, pork and poultry companies have too much control over the American meat market, allowing them to dictate wholesale and retail pricing to profit at the expense of their suppliers and customers.
Source: SGX Masnet, The Business Times, Bloomberg, Channel NewsAsia, Reuters, CNBC, PSR
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