Daily Morning Note – 8 June 2021

PHILLIP SUMMARY

Asian stocks were steady early Tuesday as investors await more clues on the outlook for inflation and central bank stimulus amid the recovery from the pandemic. The dollar held a decline. Stocks edged up in Japan and Australia but fell in South Korea. U.S. shares closed little changed in sight of a record, while the Nasdaq 100 was bolstered by a Biogen Inc. rally on approval of its Alzheimer’s drug. U.S. futures rose and Nasdaq 100 contracts outperformed, weathering an international plan to ensure big firms such as Amazon.com Inc. pay a minimum level of tax. Ten-year U.S. Treasury yields were stable. Traders are awaiting the U.S. inflation report to gauge price pressures amid expectations the Federal Reserve in the weeks ahead will begin talking about tapering asset purchases.


BREAKING NEWS

SG News

Jurong Shipyard, a wholly-owned unit of Sembcorp Marine, has agreed to revise the delivery dates of two ultra-deepwater drill ships it has contracted to build for Transocean Offshore Deepwater Holdings, due to work disruptions amid Covid-19. The delivery dates of the first vessel, Deepwater Atlas, has been rescheduled to December 2021. The delivery date for the second vessel, Deepwater Titan, has been pushed to May 2022.

ComfortDelgro on Monday announced that it will bring its taxi, private bus, car rental and leasing, as well as lifestyle businesses, under a new umbrella division called the Private Mobility Group (PMG). This comes amid an ongoing strategic review by the group. “The move aims to synergise and leverage on ComfortDelGro’s core strengths in land transport solutions, whilst making it easier for customers to gain access to the various services in the group,” said the group in a bourse filing.

Lendlease Global Commercial Reit has proposed to raise its stake in Jem mall to up to 31.8 per cent for a purchase consideration of between S$204.1 million and S$337.3 million, the manager said on Monday. The Reit’s trustee has entered into sale-and-purchase agreements with various vendors to acquire stakes in two private funds, Lendlease Jem Partners Fund Limited (LLJP) and Lendlease Asian Retail Investment Fund 3 Limited (ARIF3). They own 25 per cent and 75 per cent of Jem, respectively.

DBS on Monday received the official green light for its majority-owned securities joint venture (JV) in China, with the attainment of its securities business licence from the China Securities Regulatory Commission (CSRC). With business operations officially commencing on Monday, DBS Securities (China) will operate brokerage, securities investment consulting, securities underwriting and sponsorships, as well as proprietary trading.

The sale of four Chapter 11 properties of Eagle Hospitality Real Estate Investment Trust (EH-Reit) were completed on June 3, EH-Reit trustee DBS Trustee said in a bourse filing on Monday. The four properties sold are Sheraton Denver Tech Center, Four Points by Sheraton San Jose Airport, Embassy Suites by Hilton Anaheim North and Double Tree by Hilton Salt Lake City, with a total consideration of US$117.2 million.

Aspen (Group) Holdings on Monday provided an update on its business operations, following the imposition of Phase 2 (Heightened Alert) in Singapore and a full movement control order (MCO) in Malaysia, as its property development, healthcare and food and beverage (F&B) sectors have been affected. Singapore’s restrictions began on May 16 and are set to conclude on June 13, while Malaysia’s full MCO is in effect from June 1 to June 14. Aspen said that it was unable to quantify the extent of the financial impact of these restrictions on the earnings per share and net asset value per share of the group for the financial year ending Dec 31, 2021.

US News

To further enhance privacy, Apple is giving users of iOS 15 and iPadOS 15 a new menu showing them in detail what data third-party apps are collecting. The company is making Siri more private, too, keeping the processing of such key tasks as launching apps, setting alarms and changing settings on the device itself rather than sending it to the less-secure web. That also will speed up Siri response times, a frequent complaint.

Biogen Inc. shares surged after its controversial Alzheimer’s disease therapy was approved by U.S. regulators, a landmark decision that stands to dramatically change treatment for the debilitating brain condition. The stock gained as much as 64% shortly after the news of the clearance, triggering a brief volatility halt. It ended up 38% at $395.85, the biggest single-day gain since drug officials first said that the treatment appeared effective in November.

Global policy makers are crafting their international tax plan to make sure Amazon.com Inc. is included, even though the U.S. company’s profit margin is below the 10% proposed threshold that would give other countries rights to collect revenue. Group of Seven finance ministers on Saturday voiced support for proposed rules reallocating a portion of profits above a 10% margin to be taxed in other countries, and Amazon has estimated a global operating margin of 7.1% this year. But two people familiar with the negotiations said Amazon will be included, with the particulars of how to design the policy to capture the company still being discussed.

The U.S. recovered almost all the Bitcoin ransom paid to the perpetrators of the cyber-attack on Colonial Pipeline Co. last month in a sign that law enforcement is capable of pursuing online criminals even when they operate outside the nation’s borders. U.S. officials said Monday that they captured about 63.7 Bitcoin traced to recipients of a 75-Bitcoin ransom paid by Colonial soon after the early May attack that resulted in a shutdown of the nation’s largest gas pipeline, resulting in fuel shortages across the east coast just ahead of the Memorial Day weekend.


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

HK Reports – Read up on our Hong Kong reports here

Webinar Of The Week

Market Outlook: LHN Ltd, Valuetronics Holdings, MM2 Asia, Cromwell European REIT, KORE, KSH

Date: 07 June 2021

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





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