DAILY MORNING NOTE | 7 November 2023
Trade of the Day
Geo Energy Resources Ltd (SGX: RE4)
Analyst: Zane Aw
(Current Price: S$0.310) – TECHNICAL BUY
Buy price: S$0.310 Stop loss: S$0.285 (-8.06%) Take profit: S$0.340 (+9.68%)
SoFi Technologies, Inc. (NASDAQ: SOFI)
Analyst: Zane Aw
(Current Price: US$8.01) – TECHNICAL SELL
Sell price: US$8.01 Stop loss: US$8.70 (-8.61%)
Take profit 1: US$7.00 (+12.61%) Take profit 2: US$6.50 (+18.85%)
Summary of Trades Initiated in Past Week
Singapore stocks closed higher on Monday (Nov 6), tracking rallies across regional bourses. It rose 1.2 per cent or 36.87 points to close at 3,180.53. Across the broader market, gainers outnumbered losers 403 to 233, after 1.5 billion securities worth S$1.1 billion changed hands. Major markets in the region also ended higher, with South Korea’s Kopsi, the Tokyo Nikkei 225 and Hong Kong’s Hang Seng index posting gains, tracking the rally on Wall Street last Friday.
Wall Street stocks ended slightly higher on Monday as markets assessed an earlier rally on the back of weaker job growth, easing concerns over further interest rate hikes. The Dow Jones Industrial Average edged up 0.1 per cent to finish at 34,095.86. The broad-based S&P 500 ticked up 0.2 per cent to 4,365.98, while the tech-heavy Nasdaq Composite Index rose 0.3 per cent to 13,518.78.
SG
Rental transaction volumes for non-landed luxury homes continue to rise in the third quarter of 2023, up 13.6 per cent compared to the previous quarter, Huttons Asia’s market report indicated on Monday (Nov 6). Huttons Asia’s chief executive, Mark Yip, said non-landed luxury homes’ rentals edged up by 1.8 per cent in Q3. This could be due to more foreigners renting while waiting to obtain their citizenship or permanent residence before buying. The figures were based on an estimated 701 non-landed luxury homes under Huttons’ basket of properties in Q3. For the nine months ended Sep 30, rents of non-landed luxury homes increased by almost 20 per cent to S$15,894 per month, said Huttons.
Raffles Medical Group posted S$12.4 million profit after tax for the third quarter ended Sep 30, 67.4 per cent lower than the S$38 million in the corresponding period the previous year. The results were dampened by a discontinuation of Covid-19 activities, while cost inflation also eroded the margin, said the group on Monday (Nov 6). Its revenue for the quarter was down 24.6 per cent to S$161.6 million, from S$214.2 million the year before.
Sembcorp Industries will invest about S$10.5 billion in renewables, it said on Monday (Nov 6) in its 2023-2028 strategic plan announcement. The investment comes as the energy player looks to grow its gross installed renewable capacity and halve its emission intensity by 2028. The S$10.5 billion sum translates to 75 per cent of its 2024 to 2028 total investments. For the remaining investment allocation, the group plans to place 10 per cent of its capital in hydrogen-ready assets, 10 per cent in decarbonisation solutions, and 5 per cent in its integrated urban solutions segment.
US
Citigroup’s managers and consultants working on CEO Jane Fraser’s reorganisation have discussed job cuts of at least 10 per cent in several major businesses, CNBC reported on Monday (Nov 6), citing people with knowledge of the process. The bank has warned of job cuts as part of a sweeping overhaul it unveiled in September, but has said it will estimate the scale of layoffs and cost savings in the current quarter. The reorganisation, known internally as “Project Bora Bora” according to CNBC, is intended to give Fraser more direct control as she seeks to simplify the Wall Street giant and boost its stock price.
OpenAI announced its new, more powerful GPT-4 Turbo artificial intelligence model Monday during its first in-person event, and revealed a new option that will let users create custom versions of its viral ChatGPT chatbot. It’s also cutting prices on the fees that companies and developers pay to run its software. ChatGPT, which broke records as the fastest-growing consumer app in history months after its launch, now has about 100 million weekly active users, OpenAI said Monday. More than 92% of Fortune 500 companies use the platform, up from 80% in August, and they span across industries like financial services, legal applications and education, OpenAI CTO Mira Murati told reporters Monday.
LVMH is buying luxury eyewear brand Barton Perreira, famed for making James Bond’s shades, as it taps into the fast-growing designer sunglass market. LVMH’s Thelios eyewear division agreed to acquire Irvine, California-based Barton Perreira for an undisclosed sum. The deal is Thelio’s second big acquisition in two months, after it bought French Alpine brand Vuarnet in September.
Source: SGX Masnet, Bloomberg, Channel NewsAsia, Reuters, CNBC, WSJ, The Business Times, PSR
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