Daily Morning Note – 8 January 2021
PHILLIP SUMMARY
Wall Street stocks surged to fresh records again on Thursday, shrugging off Wednesday’s violent attack on the US Capitol in favour of optimism for a better economy in 2021.
All three indices finished at new all-time highs just over 12 hours after Congress finally was able to officially certify the election victory of President-elect Biden, who called the mob that stormed the Capitol and delayed debate “domestic terrorists.”
But the economic damage remains stark, with layoffs continuing and applications for jobless benefits at staggering levels in the final month of 2020. Investors will focus on the December jobs report due out Friday which economists warn could show only a small increase or even a decline in employment.
BREAKING NEWS
Bayer is partnering with CureVac to seek international approval for the German biotech company’s coronavirus vaccine and distribute the shot. The two companies are preparing to seek regulatory clearance in Europe and around the world, and are looking to produce several hundred million doses, according to a joint statement.
Moderna‘s Covid-19 mRNA vaccine is likely to offer protection of up to a couple of years, its chief executive said on Thursday, even though more data is still needed to make a definitive assessment.
Catalist-listed Secura Group, through its subsidiary Soverus Pte Ltd, has clinched a S$13.5 million contract to provide unarmed security services to a Singapore multinational conglomerate. This brings its total order book to around S$53.7 million for contracts from security guarding, of which about S$25.1 million is expected to be fulfilled by Dec 31, 2021, and the remainder by February 2024.
Three independent directors from Eagle Hospitality Trust (EHT) – Tarun Kataria, Lau Chun Wah and Kelvin Tan – who were among those previously arrested and released on bail, have resigned from the firm’s board. Taken together, their resignations leave EHT’s audit committee without the requisite minimum of three members as stipulated in the Companies Act and Catalist rules.
Ryanair plans to begin deploying its Boeing 737 MAX aircraft in the United Kingdom following its first deliveries in the coming months, CEO Eddie Wilson said on Thursday. The airline has said it expects to receive around 30 of the MAX aircraft, which were ungrounded in the United States late last year after a 20-month safety ban that followed two fatal crashes.
US prosecutors hit Boeing with a US$2.5 billion fine to settle charges the company defrauded regulators over the 737 MAX, the Justice Department announced Thursday. Boeing reached a deferred prosecution agreement related to the company’s pronouncements to regulators about the issues with the MAX, which was grounded for 20 months after two deadly crashes and only recently was cleared to return to the skies.
US gaming platform Roblox Corp has changed course and now plans to go public through a direct listing instead of an initial public offering (IPO), people familiar with the matter said on Wednesday. The switch comes after Roblox told employees last month it had put off its planned IPO until 2021 as it worked with advisers to improve the process to benefit employees and investors.
China Consumers Association (CCA) said that Chinese Internet companies have been violating customers’ rights by misusing personal data and “bullying” people into purchases and promotions. The statement did not name any companies, but comes as Beijing has ramped up scrutiny of technology giants, reversing a once laissez-faire approach towards its vast internet space.
Source: SGX Masnet, The Business Times, Bloomberg, Channel NewsAsia, Reuters, PSR
TECHNICAL REPORTS
United Overseas Bank Ltd
Analyst: Chua Wei Ren
Recommended Action: Technical BUY
United Overseas Bank (SGX: U11) upside recovery has made some steady upside. Although UOB briefly break the May 2020 top on November 2020, the stock quickly reverts below the resistance. However, the formation of the pennant is indicative of a shortfall and based on further technical actions, UOB is poised for another upside.
>> Read more Technical reports
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