Daily Morning Note – 8 June 2022

Factsheets

Welcome to our Daily Morning Note from our Research team!

PHILLIP SUMMARY

Local shares climbed on Tuesday (Jun 7) amid mixed trading across regional markets. The benchmark Straits Times Index (STI) was in negative territory for most of the session, but climbed higher in the final hour of trading to close at 3,231.54, up 0.2 per cent or 4.91 points. Jardine Cycle & Carriage (JCNC) was the top STI gainer for the day, rising 3.1 per cent to close at S$30.80. For the year-to-date, JCNC has also been the top index performer, climbing 49.5 per cent since end-2021. Meanwhile, shares of Sats ended at the bottom of the index performance table on Tuesday, slipping 1.2 per cent to S$4.04. Shares of Yangzijiang Financial Holdings were among the most actively traded. The counter fell 2.8 per cent to S$0.525, after 72.7 million shares worth S$38.2 million were traded.

WALL Street’s main indexes opened lower on Tuesday, after Target Corp’s quarterly margin forecast cut raised worries about slowing demand in an inflationary environment and dragged down retail shares. The Dow Jones Industrial Average fell 132.75 points or 0.40 per cent, at the open to 32,783.03. The S&P 500 opened lower by 24.96 points or 0.61 per cent at 4,096.47, while the Nasdaq Composite dropped 135.56 points or 1.12 per cent to 11,925.81 at the opening bell


Top gainers & losers

Factsheets

BREAKING NEWS

SG

PSC Corporation, the recently-renamed Hanwell Holdings, plans to spend $95.1 million to acquire new frozen food manufacturing business with operations in Taiwan, China and Singapore so as to speed up its growth in a related industry. Under terms of the deal, PSC, which makes and distributes consumer staples, will pay using US$2.1 million, to the vendors. The targets have a book value of $66.720 million. The target companies are Dean Fa Food Co. (Taiwan) and Novel Food Manufacturing Co (Singapore), making brands such as the Qianye brand tofu that’s sold not only within China but also exported to US, Australia, Singapore and Korea. The issue price of the new shares is a premium of some 5.53% over the volume-weighted average price of 39.8 cents on June 3.

Raffles Education is trying to raise gross proceeds of more than $44 million via convertible bonds to pay off debt and use the remainder for working capital. First, it plans to raise nearly $26.2 million via a renounceable underwritten right issue of a convertible bonds priced at 85 cents each. The rights issue bonds are to be offered to entitled shareholders on basis of 19 rights issue bonds for each 1,000 shares they hold. The convertible bonds will mature in five years and will pay a coupon of 6% a year. The initial conversion price has been set at 6.5 cents. Chew Hua Seng, the company’s chairman, CEO and controlling shareholder, now holds 462.9 million shares, equivalent to 33.58% of the company. He will take up his full allotment and “may at his discretion” take up additional rights issue bonds.

US

The US Treasury stepped up its financial sanctions on Russia, restricting investors from buying the country’s debt in the secondary market, bringing trading activity almost to a halt on Tuesday (Jun 7) as investors scrambled to understand the new sanctions. The new guidance means US firms can hold or sell Russian debt, but can’t buy it, according to a spokesperson for Treasury’s Office of Foreign Assets Control (OFAC). The guidance applies to both corporate and sovereign debt as well as equities, the person said. OFAC’s update on its website late on Monday said US market participants are prohibited from purchasing both new and existing debt and equity securities issued by a Russian Federation entity. But investors can still sell such assets, or facilitate their sale, to non-US residents and may continue to hold them, according to the statement. The additional sanctions caught investors by surprise on Tuesday, prompting many to contact lawyers to determine what the new rules entail, according to people familiar with the matter.

The US dollar rose to a 2-week high as rising US Treasury yields supported the greenback, pushing the Japanese yen to its lowest level against the US dollar in 2 decades. The yen dropped to a 20-year low of 133 per US dollar, levels that had previously been highlighted as intervention territory, a day after central bank governor Haruhiko Kuroda reiterated an unwavering commitment to “powerful” monetary stimulus. The yen is sensitive to interest rate differentials between Japanese debt and US bonds. Benchmark 10-year Treasury yields had climbed as high as 3.064 per cent in Tokyo trading for the first time in almost 4 weeks, before slipping back to 3.0251 per cent. Spreads between 10-year US and Japanese debt held at 277 bps, not far from a 3-1/2 year high of 292 bps hit last month.

Waymo Via, the self-driving trucking unit of Alphabet, and Uber Technology‘s Freight business on Tuesday (Jun 7) said they signed a long-term strategic partnership that would allow future customers to deploy autonomous trucks more efficiently. The companies did not share a timeline for when their partnership could be used by paying customers, and Waymo and Uber Freight declined to disclose financial details of the agreement. Under the partnership, future Waymo customers can use Uber Freight to more efficiently plan their automated and human-driven trucking fleets. Uber Freight’s software acts as a middle man connecting truckers with shippers to reduce shipping costs and expensive empty cargo miles. Uber last year made a stronger push into the trucking market by buying logistics company Transplace for US$2.25 billion.

Amazon is shuttering its gig economy delivery service in Germany. The company’s Flex programme, which began in the US in 2015 before expanding to Germany 2 years later, pays drivers to ferry packages in their own vehicles from Amazon warehouses to customers’ homes. Amazon declined to say why it decided to halt the service in Germany, its second largest market after the US. But in recent years, the company has built a more formal delivery network, relying on small startups beholden to Amazon, which the company calls Delivery Service Partners or DSPs. Amazon is offering some Flex drivers a one-time payment equal to 4 weeks’ pay, according to communications reviewed by Bloomberg. The notices also encourage them to join one of hundreds of German DSPs. That network is capable of absorbing “the very small portion of deliveries that Amazon Flex has been making” while meeting delivery pledges, the company said on Tuesday (Jun 7).

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


Upcoming Webinars

Guest Presentation by Hyphens Pharma International Limited

Date: 14 June 2022

Time: 12pm – 1pm

Register: https://bit.ly/3NTNf6w


Guest Presentation by Watches.com Ltd

Date: 21 June 2022

Time: 12pm – 1pm

Register: https://bit.ly/3an3lHm


Guest Presentation by Uni-Asia Group Limited

Date: 22 June 2022

Time: 12pm – 1pm

Register: https://bit.ly/3aJjIhD



POEMS Podcast

Factsheets

Recent Podcasts:

Money Never Sleeps – Ep 10

Money Never Sleeps – Ep 9

SGX Company Insights Ep 51 – Keppel DC REIT

Factsheets

Visit www.stocksbnb.com to view our research reports!


Factsheets

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

Click the link to join: https://t.me/stocksbnb


HK Reports
– Read up on our Hong Kong reports here


RESEARCH VIDEOS

Factsheets

Weekly Market Outlook: Silverlake, Salesforce, Hyphens Pharma, SATS, PropertyGuru, LHN, SG Weekly…

Date: 6 June 2022

Click here for more on Market Outlook

Sign up for our webinars here, and be among the first to receive economy and market updates.


PHILLIP RESEARCH IN 3 MINS

Factsheets

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

Click here for more videos on Phillip in 3 Mins


For any research-related matters, email: research@phillip.com.sg

For general enquiries, email: talktophillip@phillip.com.sg
or call 6531 1555.

Disclaimer

The information contained in this email is provided to you for general information only and is not intended to create any binding legal relation. The information or opinions provided in this email do not constitute investment advice, a recommendation, an offer or solicitation to subscribe for, purchase or sell any investment product. 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 should obtain advice from a financial adviser before making a commitment to invest in any investment product or service. In the event that you choose not to obtain advice from a financial adviser, you should assess and consider whether the investment product or service is suitable for you before proceeding to invest.

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.

 

  • POEMS

    Download
    POEMS 3 App

  • POEMS

    POEMS

    Call Back

  • POEMS

    POEMS

    Chat with us

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