Daily Morning Note – 6 July 2021


Asian stocks look set for a mixed open Tuesday as traders weigh a jump in crude oil amid an OPEC+ crisis that derailed a deal to boost output. A gauge of the dollar was steady.

Equity futures rose in Japan and Australia but dipped in Hong Kong. U.S. stocks and Treasury markets were closed Monday for the Independence Day holiday, keeping trading subdued. European shares edged higher and U.S contracts fluctuated in early Asian trading.


SG News

Ascendas India Trust (a-iTrust) is investing 12 billion rupees (S$216.6 million) to develop and operate the first of two buildings planned for its inaugural data centre campus in Navi Mumbai, India. In a press statement on Monday, the trustee-manager said the upcoming data centre will be one of the largest data centre campuses in Airoli. The campus will host customers such as global technology giants, cloud service providers and large domestic enterprise clients, it added.

Vertex Holdings is planning to raise funds for dealmaking by listing a special purpose acquisition company in Singapore, which could be the country’s first such deal, according to people familiar with the matter. The venture capital holdings company owned by Temasek Holdings is working with advisers on the potential SPAC initial public offering, said the people, asking to be named as the process is private. Details of the blank-check company including size and timeline haven’t been finalized, pending listing guidelines by Singapore exchange, the people said.

Following the completion of the acquisition of dissenting shareholders’ stakes by the offeror AEM Singapore on July 5, CEI will be delisted on July 6. Contract manufacturer CEI was acquired by a wholly-owned firm of electronics services provider AEM Holdings at S$1.15 per share, with an option for shareholders to go for all cash or cash with new AEM shares. As the compulsory acquisition of the stakes owned by the minority who did not accept the offer has been completed, CEI in a regulatory filing on Monday to the Singapore Exchange announced its delisting from the mainboard at 9 am on Tuesday.

US News

US tech giants Facebook, Alphabet’s Google and Twitter have privately warned the Hong Kong government that they could stop offering their services in the city if authorities proceed with planned changes to data-protection laws, the Wall Street Journal reported on Monday, citing a letter. The laws could make the tech companies liable for the malicious sharing of individuals’ information online, the newspaper added.

Opec+ abandoned its meeting without a deal, tipping the cartel into crisis and leaving the oil market facing tight supplies and rising prices. Several days of tense talks failed to resolve a bitter dispute between Saudi Arabia and the United Arab Emirates, delegates said, asking not to be named because the information wasn’t public. The group didn’t agree a date for its next meeting, according to a statement from Opec Secretary-General Mohammad Barkindo. The most immediate effect of the breakdown in talks is that Opec+ won’t increase production for August, depriving the global economy of vital extra supplies as demand recovers rapidly from the coronavirus pandemic.

A rebound in global gas demand to 2024 following a record fall last year is poised to knock the world off track for a climate goal of achieving net zero emissions by 2050, the International Energy Agency (IEA) said on Monday. More than 190 countries have signed the Paris agreement designed to limit global warming to 1.5 degrees Celsius, which will require a huge reduction in the use of fossil fuels such as coal and gas.

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


Ascendas REIT

Analyst: Chua Wei Ren

Recommended Action: Technical BUY

Ascendas REIT (SGX: A17U) is still on a downtrend. With the descending triangle in action, the threat of breaking below the support zone at $2.83 remains a threat. However, recent technicals indicate that the REIT is likely to break above the upper boundary trendline of the descending triangle.

Buy stop: 3.00 Stop loss: 2.85 Take profit 1: 3.15 Take profit 2: 3.25

Ifast Corp Ltd

Analyst: Chua Wei Ren

Recommended Action: Technical BUY

Ifast Corp Ltd (SGX: AIY) strong upside is set to continue after a small correction from 31st May to 28th June 2021 based on the recent technical and price actions.

Buy stop: 8.40 Stop loss: 7.35 Take profit 1: 9.80 Take profit 2: 10.25

Mapletree Logistic Trust

Analyst: Chua Wei Ren

Recommended Action: Technical BUY

Mapletree Logistic Trust (SGX: M44U) upside is making a return after recent technical indicate potential further upside.

Buy spot: 2.07 Stop loss: 1.95 Take profit 1: 2.20 Take profit 2: 2.31

>> Read more technical reports

HK Reports – Read up on our Hong Kong reports here


Phillip 3Q21 Singapore Strategy – Vax and Relax

Analyst: Paul Chew

– STI was back to its old penchant. The 1.1% contraction in 2Q21 led to its underperformance against major asset classes.

– We do not expect the hyperinflation of the 1970s as economic conditions are vastly different this time.

– Strategy is to position for an aggressive relaxation of group activities and eventual border re-opening.

>> Read more research reports

Webinar Of The Week

Market Outlook: CapitaLand, Oxley Holdings, SPH, SG REITs Monthly, SG Weekly

Date: 5 July 2021

For more on Market Outlook

Updates summarised in 3 minutes

#29 – Keppel Corporation; Initiation

For more videos on Phillip in 3 Mins

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 and/or its attachment(s) is provided to you for information only and is not intended to or nor will it create/induce the creation of any binding legal relations. The information or opinions provided in this email do not constitute an investment advice, an offer or solicitation to subscribe for, purchase or sell the e investment product(s) mentioned herein. 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 may wish to seek advice from an independent financial adviser before making a commitment to purchase or investing in the investment product(s) mentioned herein. In the event that you choose not to do so, you should consider whether the investment product(s) mentioned herein is suitable for you. PhillipCapital and any of its members will not, in any event, be liable to you for any direct/indirect or any other damages of any kind arising from or in connection with your reliance on any information in and/or materials attached to this email. The information and/or materials provided 揳s is?without warranty of any kind, either express or implied. In particular, no warranty regarding accuracy or fitness for a purpose is given in connection with such information and materials.
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.


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