Daily Morning Note – 5 July 2021

PHILLIP SUMMARY

Asian stocks look set for a steady start Monday after U.S. shares rose further on speculation the Federal Reserve has scope to continue providing substantial stimulus support. Oil is in focus amid an OPEC+ spat.

Futures were little changed in Japan and Australia and rose in Hong Kong. The S&P 500 reached a record for a seventh day Friday after a U.S. jobs report signaled the economy is gaining steam but not at a pace that would prompt the central bank to taper stimulus quickly. U.S. equity contracts were stable. U.S. stock and bond markets are closed for the July 4 Independence Day holiday.


BREAKING NEWS

SG News

UOB has restored access to its UOB Mighty and personal Internet banking services, which were disrupted on Sunday morning. It said that its systems remain secure, and clarified that its automatic teller machines (ATMs) were not affected by the issue. Customers started reporting issues with logging into the services before noon. UOB responded in a Facebook post at 12:56pm that it was working to resolve the matter, and apologised for the inconvenience caused.

EcoWise will not convene an extraordinary general meeting (EGM) to vote on resolutions in a requisition notice received from three members of the company in May, the company said on Friday night. ecoWise said that it had considered the proposed resolutions in light of the notice of compliance issued by the Singapore Exchange Regulation (SGX RegCo) on June 25 and determined that the resolutions would not be meaningful for the company.

The majority of Singaporeans who shared their views on public housing in prime locations support the giving of additional subsidies to keep these flats affordable and the imposing of strict criteria for first-time buyers and subsequent resale buyers. More than 6,500 Singaporeans gave their feedback through a national online survey, dialogues, focus group discussions and e-mail since last November, when plans to build new flats in prime areas were announced.


US News

Riding a wave of optimism, Americans are eagerly returning to their Fourth of July rituals, flocking to the roads and skies in the stiffest test yet for the nation’s travel infrastructure since the pandemic shut the nation down in March last year. About 48 million Americans are expected to travel over last Thursday (July 1) to Monday, a 40 per cent jump from last year, according to AAA, the automobile owners group. Of those, a record 43.6 million are predicted to travel by car, an 8 per cent increase from 2019.

A massive ransomware attack on the software supply chain has impacted more than 1,000 businesses so far, and the number may continue to grow, according to the cybersecurity firm Huntress Labs Inc. The hackers targeted managed service providers, which provide IT services primarily to small- and medium-size businesses. Such attacks can have a multiplying effect, since the hackers may then gain access and infiltrate the MSPs’ customers too.

Johnson & Johnson said that its single shot coronavirus vaccine neutralises the fast-spreading Delta variant and provides durable protection against infection more broadly. The company said in a statement on Thursday (July 1) that recipients of its vaccine produced strong neutralising antibodies over the course of at least eight months against all variants, including Delta, which was first seen in India and has been spreading around the globe. Delta is expected to become the dominant strain in the United States in the coming weeks, according to the Centres for Disease Control and Prevention.


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

TECHNICAL PULSE

LHN Ltd

Analyst: Chua Wei Ren

Recommended Action: Technical BUY

LHN Ltd (SGX: 41O) strong upside is set to continue after a small correction based on the recent technical and price actions.

Buy spot: 0.405 Stop loss: 0.345 Take profit 1: 0.480 Take profit 2: 0.525

>> Read more technical reports

HK Reports – Read up on our Hong Kong reports here

RESEARCH REPORTS

SG Bonds Weekly – Week 27

Credit Analyst: Timothy Ang

– Asia primary bond market kept pace last week with sovereigns active.

– Oxley Holdings has priced S$70mn of 6.9% notes due 2024.

– Six Chinese local government financing vehicle issuers priced US$1.22bn in new bonds.

Technical Analysis: US Market Outlook

Employment return but total labour force participation rate is still lacking.
Analyst: Chua Wei Ren

– Unemployment rate grew to 5.9%, up by 0.1% from May 2021.

– Total Labour force participation rate remain stagnant, which indicate that the job market is not out of the woods yet.

– All eyes will be on the Federal Reserve this coming Thursday’s meeting minutes release. Broader expectation expects the Federal Reserve to maintain its interest rate at 0.25% but the tonality and the statement will be the key.

– Reverse repo will be the concern too as there is nearly a record Trillion dollars in cash gushing into the Fed’s reverse Repo facility.

>> Read more research reports

Webinar Of The Week

Market Outlook: Keppel Corp, SembCorp Marine, NanoFilm, Top Glove, DBS, SG Weekly

Date: 28 June 2021

For more on Market Outlook

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#29 – Keppel Corporation; Initiation

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Read the research report(s), available through the link(s) above, for complete information including important disclosures Important Information





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