Daily Morning Note – 8 February 2022

Welcome to our Daily Morning Note from our Research team!


Asian stocks look set for a mixed open Tuesday after another late dip in U.S. shares as investors weigh the potential impact of tightening monetary policy on the economic outlook. Futures for Japan were little changed, while Australia’s slipped and those for Hong Kong rose. Wall Street shares reversed gains in the last hour of trading, dragged down by technology stocks such as Meta Platforms Inc. Volumes on U.S. exchanges were among the lowest of the year. Longer maturity Treasuries fell, extending a global bond selloff on the prospect of interest-rate hikes to fight inflation. The dollar slipped against key peers. Oil’s scorching rally took a breather. In cryptocurrencies, Bitcoin held gains and was trading around $44,000.

Top gainers & losers




As penalty for the widespread disruption of its digital banking services in November last year, DBS now has to set aside about S$930 million in additional regulatory capital to guard against operational risks. The Monetary Authority of Singapore (MAS) announced on Monday (Feb 7) that it has imposed an additional capital requirement on South-east Asia’s largest bank, by requiring DBS to apply a multiplier of 1.5 times to its risk-weighted assets for operational risk.

A unit of troubled liftboat operator Ezion Holdings has entered into a 24-month bareboat charter, with an obligation to purchase (BBC), to dispose of a vessel to buyer April Pearl. April Pearl – a subsidiary of JUB Pacific – will eventually purchase the liftboat, Teras Conquest 1, for a minimum consideration of US$11.35 million and a maximum consideration of US$11.5 million, minus the deposit, monthly payments and any amounts payable and paid by April Pearl.

The Covid-19 pandemic has dented Frasers Logistics & Commercial Trust‘s distributable income by about S$0.2 million for Q1 2022, but this has not been material to the real estate investment trust (Reit), said its manager in a business update on Monday (Feb 7). The figure comprises mainly rental waivers and allowance for doubtful receivables attributable to the pandemic.

Hotel Grand Central (HGC) has reached an agreement to sell an office building in Melbourne for A$80.8 million (S$77.1 million), it said on Monday (Feb 7). The property was purchased in 2013, with a 7-year lease to the then-vendor, Victoria University, for A$51.45 million (including stamp duty). Victoria University occupies the entire property as tenant and currently pays a rent of about A$5.36 million per year, plus outgoings. The tenancy, which was extended, expires in October 2022.

Mainboard-listed trading company Intraco has agreed to acquire a 51 per cent stake worth about S$47.2 million in digital asset platform MHC Singapore, the company said in a bourse filing on Monday (Feb 7). This comes after the companies entered into a binding heads of agreement (HOA) on Dec 13, 2021, which was revised in a second binding HOA on Dec 22, 2021.


Tyson Foods Inc said it is expanding efforts to boost productivity as a tight labour market and smaller livestock herds prompt the biggest US meat company to raise prices for consumers. Tyson is targeting US$1 billion in productivity savings by the end of fiscal 2024 and US$300 million to US$400 million in fiscal 2022, relative to a fiscal 2021 cost baseline, said a statement Monday.

The United States and Japan on Monday announced a deal to remove Trump-era tariffs from about 1.25 million metric tons of Japanese steel imports annually after Washington granted similar access for European Union steelmakers last year. The new deal, which excludes aluminum at Japan’s request, will take effect on April 1 and requires Japan to take “concrete steps” to fight global excess steel manufacturing capacity, largely centered in China, US officials said.

Alibaba Group Holding registered 1 billion American depositary shares (ADSs) that hadn’t been registered before, suggesting SoftBank Group may intend to sell some of its shares. Japan’s SoftBank backed Alibaba before its initial public offering so a large portion of its holdings in the company is not registered as ADSs, Citigroup analysts including Alicia Yap wrote in a note. SoftBank owns 5.39 billion ordinary shares of Alibaba, equivalent to 673.76 million ADSs, or a 24.8 per cent stake, according to Citi’s calculations.

Swedish price comparison firm PriceRunner said on Monday (Feb 7) it was suing Alphabet-owned Google for about 2.1 billion euros (S$3.23 billion), the latest firm to take legal action alleging the search giant manipulated search results. Google in November lost an appeal against a 2.42 billion-euro fine it received in 2017 which found using its own price comparison shopping service gave the company an unfair advantage over smaller European rivals.

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

POEMS Podcast: Let the Money Talk

Recent Podcasts:

Keppel Corporation FY21 Results – SGX Company Insights Ep 50

Daily Morning Note – February 4, 2022

Microsoft Corporation 2Q22 Results – SGX Company Insights Ep 49

Visit www.stocksbnb.com to learn more!

Join our Phillip Securities Research Telegram channel for the latest update on our stock coverage!

Click here to join: https://t.me/stocksbnb

Webinar Of The Week

Weekly Market Outlook: Del Monte, Keppel Corp, Keppel DC, Frasers, Microsoft Corp, Netflix, TDCX….

Date: 31 January 2022

For more on Market Outlook

Updates summarised in 3 minutes

Phillip Research in 3 minutes: #29
Keppel Corporation; Initiation

For more videos on Phillip in 3 Mins

Read the research report(s), available through the link(s) above, for complete information including important disclosures Important Information

The information contained in this email and/or its attachment(s) is provided to you for information only and is not intended to or nor will it create/induce the creation of any binding legal relations. The information or opinions provided in this email do not constitute an investment advice, an offer or solicitation to subscribe for, purchase or sell the e investment product(s) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of this information. Investments are subject to investment risks including possible loss of the principal amount invested. The value of the product and the income from them may fall as well as rise. You may wish to seek advice from an independent financial adviser before making a commitment to purchase or investing in the investment product(s) mentioned herein. In the event that you choose not to do so, you should consider whether the investment product(s) mentioned herein is suitable for you. PhillipCapital and any of its members will not, in any event, be liable to you for any direct/indirect or any other damages of any kind arising from or in connection with your reliance on any information in and/or materials attached to this email. The information and/or materials provided 揳s is?without warranty of any kind, either express or implied. In particular, no warranty regarding accuracy or fitness for a purpose is given in connection with such information and materials.
Confidentiality Note
This e-mail and its attachment(s) may contain privileged or confidential information, which is intended only for the use of the recipient(s) named above. If you have received this message in error, please notify the sender immediately and delete all copies of it. If you are not the intended recipient, you must not read, use, copy, store, disseminate and/or disclose to any person this email and any of its attachment(s). PhillipCapital and its members will not accept legal responsibility for the contents of this message. Thank you for your cooperation.


Contact us to Open an Account

Need Assistance? Share your Details and we’ll get back to you