Daily Morning Note – 9 July 2021

PHILLIP SUMMARY

Asian shares look poised to follow U.S. equities lower Friday, with the rally in Treasuries gaining pace on growing anxiety that the spread of Covid-19 variants could hamper the global economic recovery

Futures fell in Japan and Australia but edged up in Hong Kong, where a key gauge of Chinese stocks is near a bear market. U.S. contracts dipped after the S&P 500 and Nasdaq 100 retreated from records. Economically-sensitive sectors like industrials and materials led Wall Street lower


BREAKING NEWS

SG News

Axington Inc has inked a non-binding memorandum of understanding to acquire a 60 per cent stake in a Hong Kong Web technology company that is expected to result in a reverse takeover of the Catalist-listed cash company. In its regulatory statement to the Singapore Exchange on Thursday, Axington announced that the understanding inked on July 8 would form the broad basis of the definitive agreements to be entered into within a month with Delta Investment Holding Group for the proposed acquisition of the stake in Veivo Web Technology for S$405 million

National grid operator SP Group (SP) has started its trial of vehicle-to-grid (V2G) technology and has raised its investment in a V2G technology firm as Singapore progresses towards wider adoption of electric vehicles (EVs). The company aims to test the viability of tapping the energy stored in EVs in the trial to enhance the reliability of the grid, which will need to support more than 600,000 vehicles when Singapore phases out internal combustion engine vehicles by 2040, said SP in its media statement on Thursday

Singapore’s total shophouse transaction value hit S$836.1 million in H1 2021, up 29.9 per cent from H2 2020, backed by the pick-up in activity from Q4 2020. This total was made up of the first and second quarter’s transaction values of S$365.4 million and S$470.7 million respectively. In terms of volume, the half-year saw 118 sales, up from the 90 in H2 2020. While freehold shophouses still accounted for the bulk of transactions – 78.8 per cent – leasehold sales volume more than doubled from the previous half-year to 25 units


US News

The number of Americans filing new claims for unemployment benefits rose slightly last week but continuing claims dropped, another indication that the labour market recovery from the Covid-19 pandemic continues to be choppy. Businesses have reopened at a rapid clip, boosted by a rollback in restrictions now that more than 155 million Americans have been fully vaccinated against the coronavirus. Still, the job market rebound has been anything but steady despite recent employment gains. Initial claims for state unemployment benefits rose 2,000 to a seasonally adjusted 373,000 for the week ended July 3, the Labor Department said on Thursday. Economists polled by Reuters had forecast 350,000 applications for the latest week

Oil prices fell more than US$1 a barrel on Wednesday in another seesaw trading session, as investors feared what this week’s collapse in Opec+ talks meant for worldwide production. Crude markets have been volatile over the last two days following the breakdown of discussions between major oil producers Saudi Arabia and United Arab Emirates (UAE). Brent crude settled at US$73.43 a barrel, falling US$1.10 or 1.5 per cent. US West Texas Intermediate settled at US$72.20 a barrel, shedding US$1.17 or 1.6 per cent. Both benchmarks rallied more than US$1 a barrel earlier in the session, similar to Tuesday’s action

Tesla debuted a significantly cheaper version of its locally built Model Y sports utility vehicle in China as deliveries for June slipped amid concern a string of negative publicity may have soured consumer sentiment toward the electric-carmaking pioneer. Wholesale shipments of China-made Teslas decreased 0.9 per cent last month to 33,155 from 33,463 in May, data from China’s Passenger Car Association showed Thursday. May’s figure was a surge of almost 30 per cent from April. The wholesale figures may not necessarily reflect the level of retail demand Tesla fields directly versus via traditional dealerships


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

RESEARCH REPORTS

Singapore Banking Monthly – All eyes on dividend cap review

Recommendation: Overweight (Maintained)

Analyst: Terence Chua

– Singapore loans were up 0.2% YoY in May. Business loans contracted for ninth straight month by 0.5% YoY. Consumer loans were up for tenth straight month, by 0.3% YoY, aided by housing.

– MAS is assessing whether to extend current dividend restrictions on banks. We continue to see the potential for a removal of the dividend cap.

– Maintain OVERWEIGHT. Loans remain on path of recovery on stable interest rates. Catalysts to come from a relaxation of dividend caps on banks. We believe MAS could ease the dividend cap as Singapore banks have kept sufficient capital buffers. We prefer DBS (DBS SP, ACCUMULATE, TP: S$31.40) for sector exposure on account of its wealth-management and investment banking franchises.

>> Read more research reports

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