Daily Morning Note – 8 July 2021

PHILLIP SUMMARY

Asian stocks are poised for a steady open Thursday, following gains for U.S. shares and Treasuries as the Federal Reserve minutes showed policy makers still awaiting more evidence of economic strength to determine a timeline for tapering asset purchases.

Futures pointed slightly lower in Japan and higher in Australia, and were little changed in Hong Kong. U.S. contracts were stable after the S&P 500 and Nasdaq Composite both closed at all-time highs. Ten-year U.S. Treasury yields fell for a seventh trading day, dipping briefly below 1.3% for the first time since February, as expectations for an inflationary rebound continued to fade.


BREAKING NEWS

SG News

CapitaLand has launched a second logistics private fund in India worth S$400 million for expansion in the country’s logistics sector, the property giant said on Wednesday. The CapitaLand India Logistics Fund II will invest in the development of key warehousing and manufacturing hubs in six major cities including Ahmedabad, Bangalore, Chennai, Mumbai, the National Capital Region and Pune, and in emerging markets such as Coimbatore, Guwahati, Jaipur, Kolkata and Lucknow.

The manager of Prime US Reit announced on Wednesday that it will issue new units under its distribution reinvestment plan at 83.2 US cents per unit. It had earlier made an application for a distribution reinvestment plan for the cumulative distribution of 3.42 cents per unit in the real estate investment trust (Reit), for the period from Jan 1 to July 5, 2021. The issue price represents a 0.5 per cent discount to the adjusted volume-weighted average trading price per unit for all trades on the Singapore Exchange for each of the 10 market days prior to and ending on July 5, 2021.

Keppel Infrastructure Trust (KIT) has entered into a conditional agreement to acquire the remaining 30 per cent stake it does not already own in SingSpring Desalination Plant from Hyflux for S$12 million, announced KIT’s trustee-manager on Wednesday. The desalination plant in Tuas is Singapore’s first large-scale seawater desalination plant and is capable of supplying up to 136,380 cubic metres of desalinated potable water per day. It began commercial operations in December 2005, and utilises cost and energy-efficient reverse osmosis technology.


US News

Huawei Technologies says it was treated unfairly when the US government labelled it a security threat, yet China’s largest technology company is seeking redress from the American jury system in a major patent fight with Verizon Communications. A trial is set to being Wednesday in Marshall, Texas, in Huawei’s case against Verizon over claims it is using Huawei’s patented networking technology without a licence. It’s the first of two scheduled this year over lawsuits Huawei filed last year against Verizon, the biggest US mobile carrier.

Former President Donald Trump said Wednesday he is suing Facebook, Twitter and Google as well as their respective CEOs Mark Zuckerberg, Jack Dorsey and Sundar Pichai. Trump, who has a history of threatening legal action but not always following through made the announcement at his golf club in Bedminster, New Jersey, at 11 a.m. ET alongside two leaders from America First Policy Institute, the pro-Trump nonprofit group that is supporting the lawsuits. The three related lawsuits, filed in federal court in Florida, allege the tech giants have violated plaintiffs’ First Amendments rights.

The highly transmissible delta variant is now the dominant coronavirus strain in the United States, surpassing the alpha variant first found in the U.K., according to Covid-19 modeling data released by the Centers for Disease Control and Prevention. Delta, the variant first found in India that’s now in at least 104 countries, represented 51.7% of new Covid cases in the U.S. over the two weeks ended July 3, according to recently updates estimates by CDC Meanwhile, the proportion of new cases caused by alpha was just 28.7% over the same time period, according to the U.S. agency.


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

HK Reports – Read up on our Hong Kong reports here

Webinar Of The Week

Market Outlook: CapitaLand, Oxley Holdings, SPH, SG REITs Monthly, SG Weekly

Date: 5 July 2021

For more on Market Outlook

Updates summarised 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





Disclaimer
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

IMPORTANT INFORMATION

This material is provided by Phillip Capital Management (S) Ltd (“PCM”) for general information only and does not constitute a recommendation, an offer to sell, or a solicitation of any offer to invest in any of the exchange-traded fund (“ETF”) or the unit trust (“Products”) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. You should read the Prospectus and the accompanying Product Highlights Sheet (“PHS”) for key features, key risks and other important information of the Products and obtain advice from a financial adviser (“FA“) pursuant to a separate engagement before making a commitment to invest in the Products. In the event that you choose not to obtain advice from a FA, you should assess whether the Products are suitable for you before proceeding to invest. A copy of the Prospectus and PHS are available from PCM, any of its Participating Dealers (“PDs“) for the ETF, or any of its authorised distributors for the unit trust managed by PCM.  

An ETF is not like a typical unit trust as the units of the ETF (the “Units“) are to be listed and traded like any share on the Singapore Exchange Securities Trading Limited (“SGX-ST”). Listing on the SGX-ST does not guarantee a liquid market for the Units which may be traded at prices above or below its NAV or may be suspended or delisted. Investors may buy or sell the Units on SGX-ST when it is listed. Investors cannot create or redeem Units directly with PCM and have no rights to request PCM to redeem or purchase their Units. Creation and redemption of Units are through PDs if investors are clients of the PDs, who have no obligation to agree to create or redeem Units on behalf of any investor and may impose terms and conditions in connection with such creation or redemption orders. Please refer to the Prospectus of the ETF for more details.  

Investments are subject to investment risks including the possible loss of the principal amount invested. The purchase of a unit in a fund is not the same as placing your money on deposit with a bank or deposit-taking company. There is no guarantee as to the amount of capital invested or return received. The value of the units and the income accruing to the units may fall or rise. Past performance is not necessarily indicative of the future or likely performance of the Products. There can be no assurance that investment objectives will be achieved.  

Where applicable, fund(s) may invest in financial derivatives and/or participate in securities lending and repurchase transactions for the purpose of hedging and/or efficient portfolio management, subject to the relevant regulatory requirements. PCM reserves the discretion to determine if currency exposure should be hedged actively, passively or not at all, in the best interest of the Products.  

The regular dividend distributions, out of either income and/or capital, are not guaranteed and subject to PCM’s discretion. Past payout yields and payments do not represent future payout yields and payments. Such dividend distributions will reduce the available capital for reinvestment and may result in an immediate decrease in the net asset value (“NAV”) of the Products. Please refer to <www.phillipfunds.com> for more information in relation to the dividend distributions.  

The information provided herein may be obtained or compiled from public and/or third party sources that PCM has no reason to believe are unreliable. Any opinion or view herein is an expression of belief of the individual author or the indicated source (as applicable) only. PCM makes no representation or warranty that such information is accurate, complete, verified or should be relied upon as such. The information does not constitute, and should not be used as a substitute for tax, legal or investment advice.  

The information herein are not for any person in any jurisdiction or country where such distribution or availability for use would contravene any applicable law or regulation or would subject PCM to any registration or licensing requirement in such jurisdiction or country. The Products is not offered to U.S. Persons. PhillipCapital Group of Companies, including PCM, their affiliates and/or their officers, directors and/or employees may own or have positions in the Products. Any member of the PhillipCapital Group of Companies may have acted upon or used the information, analyses and opinions herein before they have been published. 

This advertisement has not been reviewed by the Monetary Authority of Singapore.  

 

Phillip Capital Management (S) Ltd (Co. Reg. No. 199905233W)  
250 North Bridge Road #06-00, Raffles City Tower ,Singapore 179101 
Tel: (65) 6230 8133 Fax: (65) 65383066 www.phillipfunds.com