Daily Morning Note – 7 June 2022
Singapore stocks closed lower on Monday (Jun 6), amid mixed trading in the region, as investors considered factors including higher oil prices and easing of Covid-19 restrictions in China. The benchmark Straits Times Index (STI) fell 0.2 per cent or 5.34 points to 3,226.63. Elsewhere, markets in China and Hong Kong led gains in the region, with the Shanghai Composite up 1.3 per cent, while the Hang Seng Index in Hong Kong rose 2.7 per cent. However, Australia’s ASX 200 fell 0.4 per cent, while the Jakarta Composite Index slipped 1.2 per cent.
Wall Street stocks finished a choppy session modestly higher on Monday as markets monitored rising Treasury yields ahead of key inflation data. US equities started the week strongly before giving up most gains as the yield on the 10-year US Treasury note, a proxy for inflation and interest rates, climbed above three percent. The Dow Jones Industrial Average edged up 0.1 per cent to end at 32,915.78. The broad-based S&P 500 advanced 0.3 per cent to close at 4,121.43, while the tech-rich Nasdaq Composite Index gained 0.4 per cent to 12,061.37.
SG
In line with its focus on sustainability investing in the last few years, state investment company Temasek has launched a separate investment company dedicated to decarbonisation solutions, and committed an initial amount of S$5 billion as its startup capital. Called GenZero, the new investment platform will deploy this capital across 3 investment focus areas: technology-based solutions that seek to help organisations decarbonise, nature-based solutions that aim to protect and restore the Earth’s ecology, and solutions that support the development of a carbon ecosystem. Speaking at its launch on Monday (Jun 6), GenZero’s chief executive officer designate Frederick Teo said that the investment platform will adopt a flexible investment approach and look at viable solutions from early-stage companies, as well as commercially-ready technologies from mature companies. Companies developing solutions that could potentially have a climate impact, are commercially scalable to ensure financial returns or are in need of catalytic capital, are GenZero’s broad investing parameters.
Urban, infrastructure and managed services consultancy company Surbana Jurong has entered into an agreement with SP Group to install electric vehicle (EV) charging points at its new global headquarters, the Surbana Jurong Campus. Located in the Jurong Innovation District, the on‐campus EV charging hub is expected to be the largest in South-east Asia. The hub will eventually allow up to 250 drivers to park and charge their vehicles at a time, Surbana Jurong said in a statement on Monday (Jun 6). SP currently operates Singapore’s largest public fast‐charging EV network which covers over 500 charging points across more than 100 locations. Group chief executive officer of SP Stanley Huang noted that the company aims to accelerate the adoption of electro-mobility in Singapore to support the Republic’s net-zero emissions goal. Singapore’s Ministry of Transport also aims to install at least 3 EV charging ports in all Housing and Development Board car parks by 2025.
China Construction Bank Corporation’s Singapore Branch has issued $350 million worth of infrastructure bonds that will be quoted on the Singapore Exchange. The $350 million 2-year bonds were priced at a coupon of 2.85%, after a tightening of 20 bps from the initial price guidance. According to China Construction Bank Singapore, this issue was oversubscribed, with strong demand from the central banks, commercial banks, private banks, insurance companies and asset managers. Rating agency Moody’s has given this issue an A1 rating. This is China Construction Bank Singapore’s fourth Singdollar bond issue here. It is also the seventh issue under the bank’s “The Belt and Road Initiative” Infrastructure bond series.
US
Oil prices settled slightly lower after choppy trade on Monday, buoyed by Saudi Arabia raising its July crude prices but amid doubts that a higher output target for Opec+ oil producers would ease tight supply. Brent crude fell 21 cents, or 0.2 per cent, to settle at US$119.51 a barrel after touching an intraday high of US$121.95. US West Texas Intermediate (WTI) crude futures fell 37 cents, or 0.3 per cent, to settle at US$118.50 a barrel after hitting a three-month high of US$120.99. The benchmark fell by US$1 earlier in the session.
Amazon shares rose on Monday (Jun 6), in the first trading session following a 20-for-1 stock split, the e-commerce company’s first such move in more than 2 decades. Shares gained 2 per cent, easily outperforming the Nasdaq 100 Index, which rose 0.4 per cent, though tech stocks gained broadly after China eased Covid restrictions. The split could make the stock more attractive to retail investors, and nearly 134 million shares exchanged hands on Monday, above the stock’s daily average volume over the past 3 months. When the split was first announced in March, Amazon said making the stock “more accessible” for average investors was a reason behind the decision. The stock is coming off a 2-week gain of about 14 per cent, but it remains down more than 10 per cent since Mar 9, when the split was first announced. So far this year, Amazon shares are down 25 per cent, compared with a 23 per cent decline in the Nasdaq 100 Index.
Blackrock Inc, facing political scrutiny over its stance on environmental, social and governance (ESG) investing and its outsize influence in business, is on a mission to re-introduce itself to Washington. On Monday (Jun 6), the world’s largest asset manager is launching an advertising campaign in the US capital dubbed “About BlackRock” — to emphasise how it helps investors, including by managing retirement plans for more than 35 million Americans. The firm, which oversaw US$9.6 trillion of client assets at the end of March, will begin by running ads in Washington media markets and may expand the campaign nation-wide. “This initiative will be a sustained effort over the coming weeks and months aimed at telling our story to a broader audience to help them understand what BlackRock does,” Dalia Blass, global head of external affairs, and co-chief marketing officer Alex Craddock, said in a memo to staff. Chief executive officer Larry Fink, 69, has become an increasingly prominent voice in business over the past decade, urging companies to think about more than just profits. His annual letters on “stakeholder capitalism” have drawn criticism from conservatives, who say he’s pandering to “woke” values.
Source: SGX Masnet, The Business Times, Bloomberg, Channel NewsAsia, Reuters, CNBC, PSR
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Date: 6 June 2022
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