Ada Tam Ying Ying

Nov 14, 20238 min read

08 Nov2023 Reports

Updated: Nov 28, 2023

SGX

Phillip OCBC DBS UOB KGI CIMB Lim&Tan MayBank

https://www.zawya.com/en/mena

Phillip Capital Market Reports:

Stock Research

Phillip Daily Morning Note :

https://mailchi.mp/phillip/phillip-morning-note-257031?e=ffecca3682

US Market (By Phillip Global Markets Night Desk)

8 November 2023

Argus's Favored Classes, Segments

October was a difficult month for investors, as stocks and bonds both dropped about 1.2%. Year-to-date, stocks still hold the performance lead over bonds, with a 13% gain in the benchmark S&P 500 compared to a 1% decline for fixed income through early November. Looking ahead, our Stock-Bond Barometer Model modestly favors bonds over stocks for long-term portfolios.

In other words, these asset classes should be near their target weights indiversified portfolios, with a slight tilt toward fixed income, given the rise in yields to levels near 20-year highs. We are over-weight on large-caps. We favor large-caps for growth exposure and financial strength, while small-caps

offer value. Our recommended exposure to small- and mid-caps is 12%-13% of equity allocation, below the benchmark weighting. U.S. stocks have outperformed global stocks over the trailing five-year period. We expect this long-term trend favoring U.S. stocks to continue, given volatile and erratic global economic, political, geopolitical, and currency conditions. That said, international stocks offer favorable near-term valuations, and we target

5%-10% of equity exposure to the group. In terms of growth and value, growth has rebounded in 2023, outperforming value as interest rates have stabilized. Over the longer term, we anticipate that growth, led by the Technology and Healthcare sectors, will top returns from value, led by the Energy and Materials sectors, due to favorable secular, demographic and regulatory trends.

Market Wrap

Global stocks struggled to make headway as a raft of central bank officials pushed back against the prospect of speedy interest rate cuts, a message which Federal Reserve Chair Jerome Powell could reinforce later in the day.

US equity futures traded just above flat and Europe’s Stoxx 600 index rose 0.2%. US 10-year Treasury yields held flat at about 4.45%. Oil extended losses, West Texas Intermediate crude futures sliding to $76. The dollar firmed for the third straight day.

Today's Big News

Israel Latest: G-7 Seeks Hostage Releases With ‘Pauses’ in War

Ping An Sold Country Garden Stake, Has No Plans for Takeover (1)

Israel Says Troops Have Entered ‘Heart’ of Gaza’s Main City (2)

Video-Game Platform Roblox Soars on Bookings, Revenue Beat (2)

Airbnb to Surface ‘Guest Favorite’ Listings in Reliability Push

Singapore Says Two States Only Solution for Israel, Palestinians

OCBC

DBS

DBS VICKERS Daily Newsletter | 8 Nov 2023

Your daily newsletter

International monetary fund raised China growth forecast to 5.4% for 2023
UBS share price rose 3% on strong underlying profit beat, positive net new money inflow from UBS integration
WeWork’s bankruptcy an overhang for London office sector with their 2.89m sqft footprint in the city

Latest changes: DBS Equity Picks

DBS Equity Picks have consistently outperformed market benchmarks since inception.

NEW ADDITION(S)

Add Mapletree Pan Asia Commercial Trust to Dividend category (Singapore)

China Real Estate Sector

More actions needed aside from the “Second Arrow”

PBoC (People’s Bank of China) reportedly called a meeting with a group of developers to better understand the financing environment and fundraising needs of the sector
There were also separate media reporting that PBOC has reacted to the directives set by the Central Financial Work Conference in end-Oct and proactively pushed forward the support of “Second Arrow” to facilitate POE developer’s refinancing
We believe the “Second Arrow” will unlikely be able to make a meaningful difference and more actions in other channels will be required to aid POE developers’ liquidity
Where are our preference picks for the sector?
Click here to read our views

Elite Commercial REIT (ELITE SP) Strengthening of credit metrics to take an extended period of time

3Q23 DPU of 0.79 pence largely in line with our estimate
Approximately GBP125m of loans due in 4Q24 remains a key datapoint to watch
Proactive plans to bring gearing to c.40% in the medium-term will be well received by Unitholders
Do we expect interest cost to rise higher for FY24?
Click here to read our views

Prime US REIT (PRIME SP)

Navigating headwinds ahead

3Q23 estimated DPU -24% y-o-y to 1.24 UScts, mainly due to higher management fees paid in cash (100% from 20% previously), slightly ahead. On q-o-q, DPU grew 2.5%.
Key positives: i) Some backfilling of vacant space were done this quarter; ii) re-amenitize One Washingtonian Center to drive leasing interests; iii) slight negative reversions due to conversion of a short-term lease
Data points to watch: i) gearing increase to 43.7% though ICR at 3.2x has some buffer; ii) year-end asset valuation iii) refinancing of debt expiring in 2024
What are our expectations for Prime’s asset revaluation come year end?
Click here to read our views

Ping An Insurance (2318 HK/601318 CH) Integrated Finance ecosystem to gauge

longterm growth

Ping An’s investor day shed light on its Integrated Finance ecosystem, which lifted Ping An to achieve almost twice the operating ROE (return of equity) of listed China insurers in the past three years
Three key metrics set by management paving way to achieve an ambitious target of doubling or even tripling OPAT (operating profit after tax) by 2030
Despite a short-term growth slowdown due to stricter regulations, Ping An is likely to maintain its leading position among peers in this round of VNB (value of new business) growth cycle
How do we foresee forward growth in Ping An’s VNB?
Click here to read our views

DBS Group Research | Equity Picks

Singapore Equity Picks: Read more

Hong Kong Equity Picks: Read more

UOB

UOBKH: Country Dailies: Wednesday, November 08, 2023

Click on the link for Greater China Daily.

https://research.uobkayhian.com/content_download.jsp?id=75992&h=42a4bc0ab5c0df63a8e370f0130059c6

Click on the link for Indonesia Daily.

https://research.uobkayhian.com/content_download.jsp?id=75997&h=88ed4ff421da13fd99deecbb987fb7d1

Click on the link for Malaysia Daily.

https://research.uobkayhian.com/content_download.jsp?id=76014&h=f7923328bd5e4abd4344700c7741ef06

Click on the link for Singapore Daily.

https://research.uobkayhian.com/content_download.jsp?id=75996&h=7caf72c610757b2ddae9b3f21a7169a9

Click on the link for Thailand Daily.

https://research.uobkayhian.com/content_download.jsp?id=76017&h=2cd87697f442740d4b25e7e7b41c531b

UOBKH: Retail Market Monitor: Wednesday, November 08, 2023

https://research.uobkayhian.com/content_download.jsp?id=75995&h=e15acd0fe172f2b51b41cf9ed3b302a9

UOBKH: Regional Morning Meeting Notes: Wednesday, November 08, 2023 [GC Economics, GC Property, 2378 HK, ERAA IJ, FNH MK, HART MK, KPG MK, CVL SP, AP TB, ESSO TB, TU TB]

https://research.uobkayhian.com/content_download.jsp?id=75994&h=80cdcf1f3f1102bd4814dcb2b7db0a37

KGI

08 Nov2023 Reports

SGX

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