DAILY MORNING NOTE | 9 September 2022

The Singapore market finished higher on Thursday (Sep 8), following solid gains overnight on Wall Street as investors shrugged off hawkish comments from Federal Reserve officials. However, regional bourses turned in a mixed showing. The Straits Times Index (STI) rose 0.7 per cent or 22.78 points to end at 3,233.61. Gainers outnumbered losers 278 to 197, with 1.33 billion securities worth S$1.04 billion changing hands. Some Asian markets also rebounded from Wednesday’s losses. South Korea’s Kospi climbed 0.3 per cent, while Japan’s Nikkei 225 jumped 2.3 per cent. In China, however, the Shanghai Composite Index fell 0.3 per cent, while the Shenzhen Composite Index on China’s second exchange lost 0.9 per cent. Hong Kong’s Hang Seng Index closed 1 per cent lower.

US SHARES ended with modest gains Thursday, recovering from early losses in the wake of the European Central Bank’s largest rate hike ever and more hawkish comments from the US Federal Reserve. Prior to the close, the New York Stock Exchange observed a minute of silence to honour the passing of Britain’s Queen Elizabeth II, the nation’s longest-serving monarch. After the double blow from the central banks working to combat surging inflation by front-loading aggressive steps, Wall Street equities bounced back from a midday slump, with gains accelerating late in the trading session.

Stocks to watch: Del Monte Pacific

US Stocks to watch: Tesla

Top gainers & losers



Canned food brand Del Monte Pacific on Thursday (Sep 8) posted a net loss of US$30.5 million for the first quarter ended Jul 31, compared to a net profit of US$18.3 million a year ago, after a one-off US$71.9 million expense for the redemption of notes. The company said US$26.3 million of the redemption cost was non-cash. Excluding the one-off cost, Del Monte would have generated a 7.2 per cent increase in net profit to US$19.6 million, after US subsidiary Del Monte Foods Inc’s (DMFI) 67 per cent rise in net profit on lower interest expense. The company posted a loss per share of 1.65 US cents, compared with an earnings per share of 0.69 US cent a year ago.

Lian Beng on Thursday (Sep 8) said its wholly owned subsidiary Lian Beng (Joo Chiat) has granted an option to sell a commercial property at 381 Joo Chiat Road to an unrelated third party. The option is exercisable by the purchaser within 14 days from the date of the option. The aggregate sale consideration is S$42 million. Lian Beng said the disposal is expected to have a positive impact on the net earnings per share and net tangible assets per share of the group for the current financial year ending May 31, 2023. The counter closed flat at S$0.53 on Thursday.

Oxley Holdings is proposing to distribute a dividend in specie of shares in Aspen (Group) Holdings held by Oxley, with shareholders receiving 23 Aspen shares for every 1,000 shares they hold. Aspen, listed on the Singapore Exchange’s mainboard, is based in Malaysia and engages in property development, glove manufacturing and the restaurant business. Its market capitalisation was S$53.1 million as at Sep 2. Oxley currently holds 101.3 million Aspen shares, representing about 9.4 per cent of the total number of issued shares.

KOP’s independent auditor has flagged a material uncertainty that may cast significant doubt on the real estate, hospitality and entertainment group’s ability to continue as a going concern. Separately, the group said it is proposing to sell 2 units of a condominium development at Dalvey Road for S$11.7 million to immediate family members of businessman Sam Goi, a controlling shareholder of the company. In a bourse filing released on Wednesday (Sep 7), KOP’s board said the group’s independent auditor, UHY Lee Seng Chan & Co, issued a qualified opinion on the group’s financial statements for the year ended Mar 31, 2022. It also included an “emphasis of matter” regarding a material uncertainty related to going concern in its report.


US banks reported US$64.4 billion in profits in the second quarter of 2022, as higher net interest income offset growing reserves to guard against loan losses, the Federal Deposit Insurance Corporation (FDIC) said Thursday (Sep 8). However, bank profits were down 8.5 per cent from a year ago, driven primarily by larger banks boosting their provision expenses for potential losses in the face of growing economic uncertainty. “The banking industry continues to face significant downside risks. These risks include the effects of high inflation, rapidly rising market interest rates, and continued geopolitical uncertainty,” said FDIC acting chairman Martin Gruenberg in a statement. “Taken together, these risks may reduce profitability, weaken credit quality and capital, and limit loan growth in coming quarters.”

Federal Reserve chair Jerome Powell said the US central bank will not flinch in its efforts to curb inflation “until the job is done”. “We need to act now, forthrightly, strongly as we have been doing,” Powell said on Thursday (Sep 8) in remarks at the Cato Institute’s monetary policy conference in Washington. “My colleagues and I are strongly committed to this project and will keep at it.” He spoke with a moderator in a virtual question-and-answer session. He said the Fed must continue to act “strongly” to cool demand and contain price pressures to avoid a repeat of the inflation surge the US economy suffered in the 1970s and 1980s. His predecessor from that era, Paul Volcker, had to take extreme measures as high inflation had become entrenched.

Mortgage rates in the US climbed for the third week in a row, reaching the highest level since 2008 and squeezing affordability as the US housing slowdown deepens. The average rate for a 30-year loan increased to 5.89 per cent, up from 5.66 per cent last week, Freddie Mac said in a statement on Thursday (Sep 8). Borrowing costs have been on a rollercoaster ride recently, with rates up almost a percentage point over the past month. Higher rates have side-lined potential buyers, affecting markets including New York. Weakening demand has now started to weigh on prices, with the average US home selling below its asking price for the first time in nearly 18 months, said real estate brokerage Redfin.

Applications for US unemployment insurance fell for a fourth straight week to the lowest since May, suggesting demand for workers remains healthy despite an uncertain economic outlook. Initial unemployment claims decreased by 6,000 to 222,000 in the week ended Sep 3, lower than all estimates, Labour Department data showed on Thursday (Sep 8). The median estimate in a Bloomberg survey of economists called for 235,000 new applications. The 4-week moving average, which smooths out volatile week-to-week moves, fell to 233,000 – the lowest since early July. Continuing claims for state benefits rose 36,000 to 1.47 million in the week ended Aug 27.

The European Central Bank on Thursday announced a 75 basis point interest rate rise, taking its benchmark deposit rate to 0.75%. “This major step frontloads the transition from the prevailing highly accommodative level of policy rates towards levels that will ensure the timely return of inflation to the ECB’s 2% medium-term target,” it said in a statement. The central bank added it “expects to raise interest rates further, because inflation remains far too high and is likely to stay above target for an extended period.” It revised up its inflation expectations, forecasting an average 8.1% in 2022, 5.5% in 2023 and 2.3% in 2024.

Volkswagen on Monday announced its intention to float sports car brand Porsche, triggering what could become one of the world’s largest listings even as record inflation and a Russia-Europe energy standoff has sent European stocks tumbling. The carmaker published a so-called intention to float for an initial public offering in late September or early October to be completed by the end of the year, but added the listing and timing was “subject to further capital market developments.” Sources close to the negotiations told Reuters earlier on Monday that Volkswagen may extend the four-week period for buyers to express interest, or pull its plans altogether, should investors not show enough enthusiasm to make the move worthwhile.

Tesla’s China operations are back in full swing after a factory upgrade and Shanghai’s Covid-19 lockdown slowed production earlier this year. Elon Musk’s electric-car maker delivered 76,965 Chinese-made vehicles in August, just below June’s record of 77,938 and a sharp rebound from July’s 28,217, when assembly lines in Shanghai were suspended for upgrades to double the factory’s annual capacity to about 1 million units. Of the August total, 34,502 went to the local market and 42,463 were shipped overseas, China Passenger Car Association (PCA) data released on Thursday (Sep 8) showed.

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


Technical Pulse: DBS Group Holdings Ltd

Recommendation: Technical BUY

Analyst: Zane Aw

Buy limit: 32.99 Stop loss: 32.10 Take profit 1: 34.40 Take profit 2: 35.15

DBS Group Holdings Ltd (SGX: D05) Upside is set to continue with breakout of the consolidation triangle.

Bond Issuance Article:Fraser Property Limited 4.49% 5yr Senior Unsecure green bonds (SGD)

Analyst: Shawn Sng

Upcoming Webinars

Guest Presentation by Credit Bureau Asia [NEW]

Date: 14 September 2022

Time: 12pm – 1pm

Register: https://bit.ly/3Rj2MP4


Guest Presentation by AIMS APAC REIT [NEW]

Date: 15 September 2022

Time: 12pm – 1pm

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


Guest Presentation by Emperador Inc. [NEW]

Date: 20 September 2022

Time: 12pm – 1pm

Register: https://bit.ly/3x4jh9I


Guest Presentation by ComfortDelGro Corporation Limited [NEW]

Date: 29 September 2022

Time: 12pm – 1pm

Register: https://bit.ly/3Ql57J7

POEMS Podcast:

Research Videos

Weekly Market Outlook: Singtel, Salesforce Inc, Silverlake Axis, Phillip On The Ground, SG Weekly…
Date: 5 September 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 minutes: #29 Keppel Corporation; Initiation
Click here for more on Phillip in 3 mins.

Follow our Socials

Facebook Social Icon Instagram Icon Twitter Social Icon Youtube Social Icon Linkedin Social Icon TikTok Social Icon Spotify Social Icon

Join our Singapore Equity Research Community on POEMS Mobile 3 App for the latest research reports, market updates, insights and more

Click to join!


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


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