DAILY MORNING NOTE | 5 September 2023
Trade of the Day
Analyst: Zane Aw
(Current Price: US$11.00) – TECHNICAL BUY
Buy price: US$11.00 Stop loss: US$9.50
Take profit 1: US$14.00 Take profit 2: US$15.30
Singapore shares began trading in positive territory on Monday (Sep 4) following a holiday-shortened week. As at 9.01 am, Singapore shares rose 6.26 points or 0.2 per cent to 3,239.56. Gainers outnumbered losers 62 to 59 across the broader market, with 139.6 million securities worth S$231.5 million changing hands.
US markets were closed on Monday for Labour Day.
Average interest rates over 10 years for the Singapore Savings Bond (SSBs) are up for the fourth consecutive tranche, at 3.16 per cent. The latest tranche, which opened on Monday (Sep 4), offers a first-year interest rate of 3.05 per cent. The interest rate at the 10-year mark is 3.48 per cent.
The majority shareholders of Challenger Technologies have exercised the right to compulsorily acquire all shares of the company – particularly the shares of shareholders who have not accepted the offer as at the close date. Following the right of compulsory acquisition, the offeror will own all the shares of the company and Challenger will be delisted from the mainboard of the Singapore Exchange at a date and time that will be announced in due course, UOB said on behalf of the offeror, DigiTech Holding, on Monday (Sep 4).
Digital Core real estate investment trust announced on Monday (Sep 4) that it would be included in the FTSE EPRA Nareit Global Developed Index from market close on Sep 15. The FTSE EPRA Nareit Global Real Estate Index Series is an international real estate investment index developed by the FTSE Group along with the European Public Real Estate Association and the National Association of Reits. The index series is designed to track the performance of listed real estate companies and Reits globally.
Gold firmed on Monday (Sep 4), buoyed by hopes the US Federal Reserve would take a pause from interest rate hikes this year after US data showed a jump in unemployment rate, but bullion held below last session’s one-month highs on a strong dollar. Spot gold gained 0.2 per cent to US$1,941.89 per ounce by 0127 GMT, after climbing to as high as US$1,952.79 on Friday. US gold futures rose 0.1 per cent to US$1,967.90.
Oil prices edged higher on Monday, supported by expectations that major producers will keep supplies tight, and growing hopes that the Federal Reserve will leave interest unchanged to avoid dampening the US economy. Brent crude November futures was up 3 cents at US$88.58 a barrel at 0333 GMT. US West Texas Intermediate crude (WTI) October futures rose 9 cents to US$85.64 a barrel.
Alibaba Group Holding’s cloud division is weighing a private round to raise funds from Chinese state-owned enterprises ahead of the business’s market debut in Hong Kong, people with knowledge of the matter said. The tech giant is working with advisers on a potential Cloud Intelligence Unit fundraising that could raise about 10 billion yuan to 20 billion yuan (S$1.86 billion to S$3.72 billion), according to the people. Prospective investors include state-backed telecommunication companies, they said.
A dose of reality is tempering the outlook for Arm’s public listing as the chip designer kicks off its roadshow this week, lowering expectations of both the valuation and the amount to be raised. The SoftBank Group Corp-owned chip unit now seeks to raise US$5 billion to US$7 billion, down from as much as US$10 billion it previously sought, Bloomberg News reported. The valuation could also end up in the range of US$50 billion to US$60 billion, instead of a previous target range of US$60 billion to US$70 billion.
Australian lithium miner Liontown Resources said it’s willing to back a new A$6.6 billion (S$5.8 billion) takeover offer from Albemarle Corp, the world’s biggest producer of the battery metal. Albemarle has been granted due diligence after raising its cash offer by 20 per cent, in a best and final proposal, Liontown said Monday (Sep 4). The Australian miner’s shares jumped 8.8 per cent in Sydney, the most since March.
Source: SGX Masnet, Bloomberg, Channel NewsAsia, Reuters, CNBC, WSJ, The Business Times, PSR
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