DAILY MORNING NOTE | 7 September 2023

SINGAPORE shares finished in the red after a mixed session in markets across the Asia-Pacific on Wednesday (Sep 6). Singapore share fell 0.1 per cent or 3.95 points to close at 3,222.88. Singapore Airlines was the top-traded counter by value. It shed 2.2 per cent or S$0.15 to S$6.75. Other counters that were heavily sold included Sembcorp and Seatrium, which ended 2.7 per cent and 2.8 per cent lower, at S$5.08 and S$0.14 respectively.

WALL Street stocks slumped for a second straight session on Wednesday as declines in Apple and other large tech companies weighed on the broader market. The Dow Jones Industrial Average finished down 0.6 per cent at 34,443.19.The broad-based S&P 500 shed 0.7 per cent to 4,465.48, while the tech-rich Nasdaq Composite Index declined 1.1 per cent to 13,872.47.

SG

The general manager of HLS Environmental, which is 80.25 per cent owned by Singapore-listed Enviro-Hub Holdings, has resigned. The former general manager of HLS was interviewed by the Corrupt Practices Investigation Bureau (CPIB) on Aug 31. The company did not disclose the details of the investigation; it also did not identify the general manager by name.

TE Asia Healthcare Partners is considering selling its oncology centres in Hong Kong, according to people with knowledge of the matter. The Singapore-based company, backed by private equity firm TPG, is working with a financial adviser on a potential divestment that could value Hong Kong Integrated Oncology Centre at more than US$100 million, the sources said. Deliberations are ongoing and TE Asia could still opt to hold onto the asset, the sources said, asking not to be identified as the process is private.

A duo of minority shareholders of watchlisted USP Group who claim to hold at least 10 per cent of the company’s shares, are asking the group to convene an extraordinary general meeting (EGM) for a complete overhaul of its board of directors.

US

The US dollar held close to a six-month peak on Wednesday (Sep 6) as jitters over China and global growth weighed on risk appetite, while the yen strengthened as Japan’s top currency diplomat sent a warning about the currency after it earlier dropped to a 10-month low. The yen strengthened by as much as 0.4 per cent to 147.02 per US dollar after Japan’s top currency diplomat, Masato Kanda, said they won’t rule out options if speculative moves persist, the strongest warning since mid-August.

The US services sector unexpectedly gained steam in August, with new orders firming and businesses paying higher prices for inputs – potential signs of still-elevated inflation pressures. The Institute for Supply Management (ISM) said on Wednesday (Sep 6) its non-manufacturing PMI rose to 54.5 last month, the highest reading since February and up from 52.7 in July. A reading above 50 indicates growth in the services industry, which accounts for more than two-thirds of the economy.

Chinese state-owned semiconductor conglomerate Tsinghua Unigroup plans to accelerate its international expansion, with South-east Asia an important target region, its chairman, Li Bin, said on Wednesday (Sep 6). Tsinghua Unigroup operates three factories in Indonesia, Malaysia and Singapore, Li told a forum in the Indonesian capital, Jakarta, on the sidelines of a regional summit, and it aims to expand manufacturing and R&D capabilities in South-east Asia.

Roku narrowed its adjusted operating loss forecast for the third quarter and said it would lay off 10 per cent of its staff as well as cut down on some office space, sending the company’s shares more than 8 per cent higher in premarket trading on Wednesday (Sep 6). Roku also raised its quarterly revenue forecast, a sign that ad spending was continuing to improve thanks to cooling inflation and hopes of a pause in interest rate hikes.

Del Monte Pacific : D03 0% on Wednesday (Sep 6) posted a net loss of US$13.1 million for the first fiscal quarter ended July, narrowing from its net loss of US$30.5 million in the corresponding year-ago period. The latest figure was due primarily to higher inflation levels and interest rates, which had hit the group’s margins adversely, the company said. Loss per share stood at US$0.0067, down from US$0.0165 in Q1 FY2023.

GameStop reported second-quarter sales that narrowly beat analyst’s estimates in its first report since the retail chain ousted its chief executive officer. Sales rose to US$1.16 billion in the quarter that ended Jul 29, the Grapevine, Texas-based company said on Wednesday (Sep 6), ahead of the US$1.14 billion average projected by analysts. The company reported a loss, excluding certain items, of 3 US cents per share, also ahead of expectations.

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

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