Daily Morning Note – 7 December 2021
Welcome to our Daily Morning Note from our Research team!
Dear Valued Investors, Please note that our last Morning Note for 2021 will be on 13 December 2021.
Stock futures edged up in overnight trading on Monday after a rebound from a rollercoaster week as investors looked past the potential impact from the new omicron coronavirus variant. Futures on the Dow Jones Industrial Average rose 40 points. S&P 500 futures and Nasdaq 100 futures both gained about 0.1%. The overnight session followed a comeback on Wall Street that saw the blue-chip Dow gain nearly 650 points. The S&P 500 jumped 1.1% on Monday with all 11 sectors registering gains. The Nasdaq Composite reversed higher to end the day up 0.9%. The rally was led by travel-related stocks such as airlines and cruise line operators.
Digital Core Reit closed some 14.8 per cent higher than its initial public offering (IPO) price of US$0.88 at US$1.01 on Monday (Dec 6), as it made its trading debut on the mainboard of the Singapore Exchange (SGX). Trading in units of the pure play data centre real estate investment trust (Reit) commenced after the lunch break at 2pm and opened at US$1, some 13.6 per cent higher than its IPO price. The counter raced to an intra-day high of US$1.09 – nearly 23.9 per cent above its IPO price – before settling down to close at US$1.01 with a total of 104.8 million units changing hands.
Keppel Land’s Chinese unit is divesting the associate company behind its first project in the eastern city of Nanjing, for 1.75 billion yuan (S$375.5 million), mainboard-listed parent Keppel Corp announced in a bourse filing on Monday (Dec 6). The deal is expected to yield a divestment gain of 284 million yuan for Keppel Land China in the financial year, not counting previously recognised gains of some 44 million yuan for unit sales.
Pawnbroker Maxi-Cash Financial Services Corp will place up to 32 million ordinary shares for more than S$5.18 million altogether, the board said on Monday (Dec 6). The issue price of S$0.162 apiece marks a roughly 7.9 per cent to the volume-weighted average price for trades done on the last full market day before a halt was called last week. The placement exercise’s estimated net proceeds of about S$5.06 million would be used for working capital purposes “to fund the expansion of its secured lending business and pawnshop network in the region”, said the Maxi-Cash board in its bourse filing.
Viking Offshore and Marine warrant holders are being offered S$0.01 for each warrant that carries the right to subscribe for one new share at S$0.50 apiece. The warrants proposal was made on Monday (Dec 6) by the joint offerors involved in an ongoing mandatory unconditional cash offer for shares in Catalist-listed Viking, and first been mentioned in the offer announcement that was made on Nov 18. That deal, from Toh Kok Soon, Synergy Supply Chain Management, Irelia Management, Tristan Management and Subtleway Management, offers S$0.01 for each share in Viking and was made after the offerors picked up a roughly 87 per cent stake in the company.
QT Vascular rebuffed 5 would-be directors who were up for a vote in an extraordinary general meeting (EGM) in the morning. The resolutions to appoint Tansri Saridju Benui, Christian Kwok-Leun Yau Heilesen, Stanley Leung Yu Tung, Zhou Jia Lin and Chay Yiowmin to the board were each rejected by shares representing 50.2 per cent of valid votes cast, with 35 valid proxy forms received.
The United States on Monday announced a diplomatic boycott of the 2022 Beijing Winter Olympics, a calibrated rebuke of China’s human rights record that stops short of preventing US athletes from competing. The decision comes after Washington spent months wrangling with what position to take on the Games, hosted in February next year by a country it accuses of perpetrating “genocide” against Uyghur Muslims in the north-western Xinjiang region.
Wall Street stocks rallied on Monday on hopes that the newest Covid-19 variant will prove less virulent than earlier strains, though market watchers cautioned of more volatility ahead. Major indices shrugged off a mixed start and picked up momentum throughout the session, ultimately lifting the Dow index by almost two per cent.
Oil prices climbed by nearly 5 per cent on Monday on hopes the Omicron coronavirus variant would have a less damaging economic impact if its symptoms proved mostly mild and as some Opec member countries signalled confidence in the market. Reports in South Africa said Omicron cases there had only shown mild symptoms and the top US infectious disease official, Anthony Fauci, told CNN “it does not look like there’s a great degree of severity” so far.
Source: SGX Masnet, The Business Times, Bloomberg, Channel NewsAsia, Reuters, CNBC, PSR
Technical Pulse: Amazon.com Inc
Recommended: Technical BUY; Analyst: Chua Wei Ren
Amazon.com Inc (US: AMZN) Technical price action indicates a potential return despite a consolidative period for a year
Buy spot: 3427.37 Stop loss: 3268.00 Take profit 1: 3717.00 Take profit 2: 3950.41
Technical Pulse: Netflix Inc
Recommended: Technical BUY; Analyst: Chua Wei Ren
Netflix Inc (US: NFLX) Technical price action indicates a potential return after the fulfilment of the double top formation in mid-November 2021
Buy stop: 620.00 Stop loss: 576.70 Take profit 1: 650.00 Take profit 2: 740.41
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Weekly Market Outlook: MUST, Digital Core REIT, LHN, Marco Polo Marine, Marathon Digital, SG Weekly.
Date: 6 December 2021
Updates summarised in 3 minutes
Phillip Research in 3 minutes: #29 Keppel Corporation; Initiation
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