Daily Morning Note – 8 December 2020

PHILLIP SUMMARY

Asian stocks looked set for a muted open as swelling coronavirus infections across the U.S. weighed on risk assets. The pound pared losses as the U.K. agreed on further talks with the European Commission to address the impasse over a trade deal.

Futures slipped in Japan and Australia and edged higher in Hong Kong. S&P 500 contracts retreated after the benchmark dropped from an all-time high, led by energy and financial stocks, amid fears of restrictions as infections climb. The Nasdaq 100 closed higher for a ninth straight day, its longest winning streak in almost a year. Ten-year Treasury yields dropped back toward 0.9% as risk-off sentiment built up and the dollar strengthened against its major peers. Oil dropped and gold jumped more than 1%.p>

BREAKING NEWS

Medtecs International Corporation, on Monday said it has tied up with existing supplier Mytrex Health Technologies to explore opportunities to co-locate production plants in Taiwan, the Philippines, the US and other regions. This is to facilitate the vertical integration of personal protective equipment (PPE) production operations to ensure product quality and minimise supply chain disruption, PPE maker Medtecs said in a bourse filing. Medtecs and Taiwan-listed Mytrex will also leverage each other’s strengths and capabilities in the PPE supply chain to explore strategic partnerships to expand their presence in the international market.

Agri-food company Japfa , will sell 80 per cent of its South-east Asia-branded dairy business to affiliates of investment firms TPG and Northstar Group for US$236 million in a strategic partnership, it said in an exchange filing on Monday. Japfa will retain 20 per cent of the shareholding in Greenfields Dairy Singapore (GDS), which is the holding company of Japfa’s Greenfields dairy business. Japfa will continue to support TPG and Northstar in the management of the business.

Sembcorp Industries expects to incur a loss for the full year ending Dec 31, 2020, as a result of S$89 million in impairments, net of tax, recorded in the second half of 2020. However, the industrial conglomerate expects to maintain positive operating cash flow in 2020, underpinned by the underlying profitable performance of its energy and urban businesses, it said in a profit guidance on Monday.

Capitaland on Monday said it has formed a programmatic joint venture (JV) to acquire and develop multifamily assets worth some US$300 million in the US. The JV will invest in assets in the south-east and South-west markets of the US, with an initial focus on Austin, Texas, the property giant said in a press statement. The JV partner is an Austin-based real estate investment, development and property management firm, which has developed over 25,000 multifamily units in the US since its inception 25 years ago, CapitaLand said.

The manager of Lippo Malls Indonesia Retail Trust (LMIRT)will not be tabling an additional resolution at its extraordinary general meeting (EGM) on postponing voting for the proposed acquisition of Lippo Mall Puri, it said in an exchange filing on Monday. Scheduled for Dec 14, the EGM was to seek approval for, among other things, the acquisition of Lippo Mall Puri.

Listed companies that were selected to set up digital banks in Singapore saw their shares rally to fresh highs, while those with failed bids, including iFast Corp and Razer Inc, tumbled on Monday. The three local banks, meanwhile, ended the day lower. Shares of Singapore Telecommunications (Singtel), whose alliance with fintech and ride-hailing giant Grab Holdings secured a digital full-bank (DFB) licence, rose as much as 10.5 per cent to an intraday and six-month high of S$2.585. Singtel eased slightly to close at S$2.41, up 3 per cent or S$0.07 on the day. Some 102.7 million shares changed hands, making it the top traded counter by value on the bourse.

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

TECHNICAL REPORTS

CapitaLand Integrated Commercial Trust

Analyst: Chua Wei Ren

Recommended Action: Technical BUY

CapitaLand Integrated Commercial Trust (SGX: C38U) is currently on course to form a triple zig-zag wave formation and based on the technical, CICT is heading for another round of corrective upside

>> Read more Technical reports

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