Daily Morning Note – 5 April 2022


Welcome to our Daily Morning Note from our Research team!


Stocks in Asia looked set for a tailwind Tuesday after gains in the technology sector helped to push U.S. shares higher. Crude oil jumped on the prospect of tougher sanctions on Russia over the war in Ukraine. Futures rose for Japan and Australia, while those for the U.S. were steady. Tech stocks on Wall Street climbed after Elon Musk, the world’s richest man, ignited a Twitter Inc. rally by disclosing a 9.2% stake in the social media platform.

U.S.-listed Chinese equities surged on easing fears about potential delistings after Beijing moved toward meeting audit disclosure requirements. Markets in Hong Kong and China are closed Tuesday for holidays. Commodities including oil and wheat advanced amid renewed fears about supply disruptions stemming from the war. The European Union is working on new Russian sanctions for alleged atrocities, while the U.S. said it may impose further penalties this week.

Treasuries were mixed, with the spotlight remaining on flat or inverted yield curves pointing to an economic downturn should the Federal Reserve deliver a series of aggressive interest-rate hikes to tamp high inflation.

Top gainers & losers




Capitaland Development (CLD) is investing in 2 prime residential sites in China as it banks on a recovery amid headwinds in China’s real estate sector. In a statement released on Monday (Apr 4), CapitaLand Group’s development arm said it has landed 1 site each in Wuhan and Chengdu for a total of 3.49 billion yuan (about S$748 million). The developer is looking to construct 1,581 quality homes on the two sites, targeting first-time home buyers and upgraders, lifting its residential pipeline under development to 19,139 units. Sealed for 2.31 billion yuan, the 45,709 sq m site in Wuhan’s central business district has a gross floor area (GFA) of 146,000 sq m and will yield 1,058 residential units. Meanwhile, the Chengdu site, bagged for 1.18 billion yuan, is located in the Chenghua District and covers an area of 29,382 sq m, with a GFA of 73,453 sq m. Construction for the 2 projects is slated to begin this year.

Cromwell European Reit issued some 1.3 million new units at an issue price of 2.2409 euros per unit last Thursday (Mar 31), bringing up the number of issued units to 562.4 million. Announcing this in a bourse filing on Monday (Apr 4), the real estate investment trust’s (Reit) manager said the new units were issued under a distribution reinvestment plan in respect of its distribution of 0.08459 euro per unit for the second half of last year. A distribution reinvestment plan is a programme that lets investors reinvest their cash dividends into additional shares or fractional shares of the stock on the dividend payment date. The new units rank pari passu in all respects with the existing units, the Reit manager added. Units of Cromwell European Reit closed down 1.3 per cent or 0.03 euro at 2.28 euros on Monday.

A fully digitalised task management system and reusable window masks for aircraft that are being repainted were among the internal creative triumphs that SIA Engineering Company (SIAEC) put on display at launch of its Innovation Week on Monday (Apr 4). These ideas were hatched and implemented as SIAEC tried to reposition itself during the significant downturn in business during the pandemic. After launching the second phase of its transformation programme in January last year, SIAEC is on track to spend the S$40 million it had originally estimated in November 2020 on such new initiatives. Speaking to the media at the launch of its Innovation Week, chief executive Ng Chin Hwee said that he was impressed by the ingenuity of employees who had injected their own ideas to improve both productivity and safety of the company’s operations.

Wing Tai Holdings’ Malaysian subsidiary has sold its property at 166A Rifle Range Road in Penang for RM17.5 million (S$5.6 million). The aggregate consideration for the disposal of the property, which comprises a leasehold land and a 5-storey factory building, is higher than RM13.7 million net book value as at Monday (Apr 4), Wing Tai said in a bourse filing on Monday. The buyers are Dapper Corporation and Chiao Huat, which are not related to Wing Tai, its subsidiaries nor its controlling shareholders.

Vertex Venture Holdings (Vertex Holdings) posted a net profit of US$530.9 million for the financial year ending Dec 31 last year, reversing a net loss of US$40.4 million the year before. The net profit for FY2021 comes on the back of a 69.5 per cent increase in its total fair value of investments to US$2 billion from US$1.2 billion, said the venture capital firm in a bourse filing on Monday (Apr 4). It includes unrealised gains totalling US$962.7 million. The share of results from its associates came in at US$537.7 million, a 500 per cent increase from US$89.4 million, while its revenue jumped by 8,173.9 per cent, climbing from US$900,000 to US$79.3 million over the same period. Its earnings before interest and taxes grew to US$614 million from a loss of US$32.5 million the year before. This is the company’s first earnings announcement after its special purpose acquisition company, Vertex Technology Acquisition Corporation (VTAC), went public on the Singapore Exchange on Jan 20.

Oiltek International’s subsidiary in Malaysia has secured new contracts amounting to some RM49.2 million (S$15.8 million) to date for its current fiscal year ending Dec 31, 2022. In its announcement on Monday (Apr 4), the Catalist-listed company said its most recent contract win entails the design, fabrication, supply and commissioning of a crude palm kernel oil refinery plant and a lauric refinery plant with ice condensing vacuum systems in Indonesia. The refinery plants will each have a capacity of 1,500 metric tonnes per day and 600 metric tonnes per day, respectively, upon completion.


Citigroup is among underwriters that have temporarily paused initial public offerings (IPOs) of new US special purpose acquisition companies (SPACs) until they get more clarity on the potential legal risks posed by recently proposed rules, according to people with knowledge of the matter. The New York-based bank is awaiting feedback from legal advisers regarding underwriter liability among other topics, said the people, who requested anonymity because the bank’s decision isn’t public. The firm has no plans to exit the business, some of the people said. Last week, the Securities and Exchange Commission (SEC) issued a sweeping plan for tightening oversight of SPACs after US lawmakers and investor advocates argued the listings were bypassing rules imposed on traditional IPOs and exposing retail shareholders to risks.

Howard Schultz’s first day back at the helm of Starbucks kicked off with an announcement that the coffee chain is suspending stock buybacks to invest back into operations. Shares of the company fell nearly 3% in premarket trading on the news. The decision comes as Starbucks faces a union push from its baristas. To date, nine of its locations have voted to unionize, including a cafe in its hometown of Seattle and its Reserve Roastery flagship in New York City. More than 180 company-owned locations have filed petitions for a union election, although that is still a small fraction of Starbucks’ overall U.S. footprint of nearly 9,000 stores. In a letter to workers, Schultz said his first task is to spend time with employees. Another job he deemed essential was suspending the company’s share repurchase program.

Do Kwon, the founder of Terraform Labs, which powers the Terra blockchain, said the Bitcoin market is “liquid” enough to handle any potential de-pegging of its stablecoin. “People need to have a little bit more faith in crypto,” the South Korean entrepreneur said during an interview Monday (Apr 4) on Bloomberg Quicktake. “If you look at Bitcoin, it turns over more than US$20 billion per day and I think with time, it’s going to be even more liquid.” Terra has been the talk of the cryptocurrency market since Kwon announced last month that it will eventually buy US$10 billion in Bitcoin to serve as a reserve to back its decentralised stablecoin. The coins are used to facilitate trading on exchanges by minimising the volatile price swings seen by most cryptocurrencies. Kwon’s Singapore-based Luna Foundation Guard has helped purchase more than US$1.4 billion of Bitcoin so far.

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

Phillip 2Q22 Singapore Strategy – A stagflation shelter

Analyst: Paul Chew

– The STI was up 9.1% in 1Q22. This was its best performance since an 11.3% rally in 1Q21.

– The global economy is facing stagflation shock. Inflation made worse by the Russia-Ukraine conflict and global growth to decelerate as interest rates climb.

– The Singapore market stands out as a shelter in the current stagflation environment. Bank earnings will enjoy a lift as interest-rates rise and reopening of borders a further boost for corporate earnings.

POEMS Podcast: Let the Money Talk


Recent Podcasts:

Money Never Sleeps – Ep 6

Del Monte 3Q22 Results – SGX Company Insights Ep 47

Lendlease Global Commercial REIT – SGX Company Insights Ep 46


Visit www.stocksbnb.com to view our research reports!



Join our Phillip Securities Research Telegram channel for the latest update on our stock coverage!

Click the link to join: https://t.me/stocksbnb

HK Reports – Read up on our Hong Kong reports here



Weekly Market Outlook: Adobe Inc., Keppel Corporation, Phillip On The Ground, SG Weekly

Date: 4 April 2022

Click here for more on Market Outlook

Sign up for our webinars here, and be among the first to receive economy and market updates.


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

Click here for more videos on Phillip in 3 Mins

For any research-related matters, email: research@phillip.com.sg

For general enquiries, email: talktophillip@phillip.com.sg
or call 6531 1555.

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 is provided to you for general information only and is not intended to create any binding legal relation. The information or opinions provided in this email do not constitute investment advice, a recommendation, an offer or solicitation to subscribe for, purchase or sell any investment product. 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 should obtain advice from a financial adviser before making a commitment to invest in any investment product or service. In the event that you choose not to obtain advice from a financial adviser, you should assess and consider whether the investment product or service is suitable for you before proceeding to invest.

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.



    POEMS 3 App



    Call Back



    Chat with us

Contact us to Open an Account

Need Assistance? Share your Details and we’ll get back to you


This material is provided by Phillip Capital Management (S) Ltd (“PCM”) for general information only and does not constitute a recommendation, an offer to sell, or a solicitation of any offer to invest in any of the exchange-traded fund (“ETF”) or the unit trust (“Products”) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. You should read the Prospectus and the accompanying Product Highlights Sheet (“PHS”) for key features, key risks and other important information of the Products and obtain advice from a financial adviser (“FA“) pursuant to a separate engagement before making a commitment to invest in the Products. In the event that you choose not to obtain advice from a FA, you should assess whether the Products are suitable for you before proceeding to invest. A copy of the Prospectus and PHS are available from PCM, any of its Participating Dealers (“PDs“) for the ETF, or any of its authorised distributors for the unit trust managed by PCM.  

An ETF is not like a typical unit trust as the units of the ETF (the “Units“) are to be listed and traded like any share on the Singapore Exchange Securities Trading Limited (“SGX-ST”). Listing on the SGX-ST does not guarantee a liquid market for the Units which may be traded at prices above or below its NAV or may be suspended or delisted. Investors may buy or sell the Units on SGX-ST when it is listed. Investors cannot create or redeem Units directly with PCM and have no rights to request PCM to redeem or purchase their Units. Creation and redemption of Units are through PDs if investors are clients of the PDs, who have no obligation to agree to create or redeem Units on behalf of any investor and may impose terms and conditions in connection with such creation or redemption orders. Please refer to the Prospectus of the ETF for more details.  

Investments are subject to investment risks including the possible loss of the principal amount invested. The purchase of a unit in a fund is not the same as placing your money on deposit with a bank or deposit-taking company. There is no guarantee as to the amount of capital invested or return received. The value of the units and the income accruing to the units may fall or rise. Past performance is not necessarily indicative of the future or likely performance of the Products. There can be no assurance that investment objectives will be achieved.  

Where applicable, fund(s) may invest in financial derivatives and/or participate in securities lending and repurchase transactions for the purpose of hedging and/or efficient portfolio management, subject to the relevant regulatory requirements. PCM reserves the discretion to determine if currency exposure should be hedged actively, passively or not at all, in the best interest of the Products.  

The regular dividend distributions, out of either income and/or capital, are not guaranteed and subject to PCM’s discretion. Past payout yields and payments do not represent future payout yields and payments. Such dividend distributions will reduce the available capital for reinvestment and may result in an immediate decrease in the net asset value (“NAV”) of the Products. Please refer to <www.phillipfunds.com> for more information in relation to the dividend distributions.  

The information provided herein may be obtained or compiled from public and/or third party sources that PCM has no reason to believe are unreliable. Any opinion or view herein is an expression of belief of the individual author or the indicated source (as applicable) only. PCM makes no representation or warranty that such information is accurate, complete, verified or should be relied upon as such. The information does not constitute, and should not be used as a substitute for tax, legal or investment advice.  

The information herein are not for any person in any jurisdiction or country where such distribution or availability for use would contravene any applicable law or regulation or would subject PCM to any registration or licensing requirement in such jurisdiction or country. The Products is not offered to U.S. Persons. PhillipCapital Group of Companies, including PCM, their affiliates and/or their officers, directors and/or employees may own or have positions in the Products. Any member of the PhillipCapital Group of Companies may have acted upon or used the information, analyses and opinions herein before they have been published. 

This advertisement has not been reviewed by the Monetary Authority of Singapore.  


Phillip Capital Management (S) Ltd (Co. Reg. No. 199905233W)  
250 North Bridge Road #06-00, Raffles City Tower ,Singapore 179101 
Tel: (65) 6230 8133 Fax: (65) 65383066 www.phillipfunds.com