DAILY MORNING NOTE | 4 July 2023

Singapore shares rose 0.04 per cent or 1.19 points to 3,207.10 on Monday (Jul 3), amid optimism over US economic data released last Friday. Across the broader market, gainers beat losers 303 to 238 after 1.2 billion shares worth S$1.02 billion changed hands.

US Stocks rose slightly Monday in a shortened session that kicked off the second half of what’s already been a stellar year on Wall Street.The Dow Jones Industrial Average added 10.87 points, or 0.03%, to finish at 34,418.47. The S&P 500 climbed 0.12% to end at 4,455.59, while the Nasdaq Composite advanced 0.21% to 13,816.77.

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EVENTS OF THE WEEK

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SG

TEMASEK’s decision to participate in Sembcorp Marine’s (Sembmarine) two rights issues in 2020 and 2021 was made after doing its due diligence into the investment, said Minister in the Prime Minister’s Office Indranee Rajah in Parliament on Monday (Jul 3).

SINGAPORE-BASED crypto company Zipmex has taken legal action against its Thai investor, V Ventures, for allegedly backing out of a US$100 million rescue deal.The deal would have resulted in Zipmex’s creditors, totalling more than 70,000, recovering all their funds. With the plan now unlikely to succeed, the company has proposed a new scheme of arrangement.

OCBC (Hong Kong) expects that a boost to its Asean-Greater China growth plans will add S$3 billion in revenue by 2025, on top of its current growth trajectory. The bank has S$93 billion in total assets in Greater China, in addition to a 20 per cent stake in Bank of Ningbo. Since 2012, it has established Greater China Business Offices across Asean to capture the link between Asean and Greater China.

SINGAPORE’S birth rate hit a record low in 2022, while at the same time the country reached the highest number of total yearly deaths since 1960. Official figures released by the Immigration and Checkpoints Authority (ICA) showed a 7.9 per cent drop in the number of live births, from 38,672 in 2021 to 35,605 in 2022.

SINGAPORE’S overall factory activity improved slightly in June, but remained in contraction territory for the third straight month, as weak global demand continues to hit manufacturing sentiment in the region. The Purchasing Managers’ Index (PMI) inched up 0.2 point to 49.7 last month, contracting at a slower rate than in May, data from the Singapore Institute of Purchasing and Materials Management (SIPMM) showed on Monday (Jul 3).


US

US MANUFACTURING slumped further in June, reaching levels last seen when the economy was reeling from the initial wave of the Covid-19 pandemic, according to a survey on Monday (Jul 3), which also showed price pressures at the factory gate deflating. The Institute for Supply Management (ISM) said that its manufacturing purchasing managers’ index (PMI) dropped to 46.0 last month, the lowest reading since May 2020, from 46.9 in May. That marked the eighth straight month that the PMI stayed below the 50 threshold, which indicates contraction in manufacturing. It is the longest such stretch since the Great Recession.

UBS has gone on a US recruiting drive for wealth managers catering to rich Americans, even as it considers culling 30 per cent of its combined global workforce after the takeover of Credit Suisse.UBS recruited 50 financial advisers, including from Bank of America’s Merrill Lynch unit, JPMorgan Chase’s recently acquired First Republic Bank, Citigroup and Wells Fargo, in the first half of the year. Of those, 30 came after the Credit Suisse deal was announced in March. The largest was BG Group, a 13-person team that managed US$2.5 billion at Merrill.

TESLA Inc and BYD Co set sales records in the second quarter, widening their lead as the world’s best-selling electric-car makers. Elon Musk-led Tesla delivered 466,140 cars worldwide, beating Wall Street estimates. BYD, China’s top-selling car brand, posted its best quarter, selling 700,244 fully electric and plug-in hybrid vehicles.

OIL prices settled down 1 per cent on Monday (Jun 3) as worries about a slowing global economy and possible US interest-rate hikes outweighed supply cuts announced for August by top exporters Saudi Arabia and Russia. Brent crude futures settled down 1 per cent, or 76 US cents, at US$74.65 a barrel while US West Texas Intermediate crude settled down 1.2 per cent, or 85 US cents, to US$69.79.


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


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