top of page
Writer's pictureAda Tam Ying Ying
Oct 17, 20238 min read

17 Oct2023 Reports

Updated: Oct 19, 2023



SGX





Economic Calendar :



Singapore’s Most Defensive Active Stocks over the past 10 weeks



















 

Phillip Capital Market Reports:


Phillip Daily Morning Note :




US Market (By Phillip Global Markets Night Desk)

17 October 2023

Sector Leaders & Laggards through 3Q23

Growth sectors soared on spiking AI interest from May through July, before stumbling in August and face-planting in September. As AI mania took hold, the "magnificent seven" stocks (AAPL, AMZN, GOOGL, NVDA, TSLA, MSFT, and META) led the U.S. market through July. In September, all but META declined in high-single-digit percentages. Concentration in perceived AI winners drove gains in growth sectors -- Communication Services, Technology, and Consumer Discretionary -- in the first seven months of 2023. Although these sectors were dinged in August and smacked in September, they continue to lead for the year, with gains of 40%, 35%, and 27%, respectively. Beyond the big three, the best sectors at the nine-month mark are Energy (up 6%), Industrials (up 5%) and Materials (up 3%). Every sector but Energy lost ground in August and September. As of the nine-month mark, five sectors are negative year-to-date: Utilities, Real Estate, Healthcare, Financial Services, and Staples. That shows deterioration from the end of August, when three were negative. After a double-digit percentage decline for stocks in 2022, Argus is modeling better-than-normal returns in 2023, meaning S&P 500 appreciation in low-double-digit percentages. We are sticking by our forecast despite the September selloff. A normally advancing market typically is led by growth sectors. After 2022, investors are used to buying cyclical, defensive, interest-rate-sensitive, and inflation-beneficiary stocks. In order for the market to recover some of its September losses, we need to see a more broad-based advance from a sector perspective in the final quarter.

Market Wrap

Stocks and bonds dropped as investors kept a close eye on diplomatic efforts to contain the Israel-Hamas war, including a planned visit to the region by US President Joe Biden.

The moves accelerated after US retail sales rose by more than forecast, suggesting that household demand remains durable and raising the question of whether the Federal Reserve has more work to do to cool price growth through interest-rate hikes. Contracts on the S&P 500 were 0.4% lower, while those on the Nasdaq 100 were down 0.6%. Yields on the US 10-year benchmark Treasury jumped nine basis points to 4.80%. The dollar strengthened.

Today's Big News

- US Retail Sales Top Forecasts in Sign of Durable Consumer Demand

-

- Goldman Traders Help Counter Real Estate Hits, Stagnant M&A (1)

-

- Israel Latest: Aid Trucks Stuck as Biden Readies Mideast Trip

-

- Choice Offers to Buy Wyndham Hotels in $9.8 Billion Deal (1)

-

- Vanguard Sells Stake in Ant Joint Venture to Further China Exit

-

- BofA’s Profit Tops Estimates on Trading, Net Interest Income (1)







 

OCBC








 

DBS


  1. Singapore September NODX fell 13.2% y-o-y, narrowing from the 22.5% contraction in August

  2. Coca-Cola to launch Absolut Vodka & Sprite, a ready-to-drink cocktail, with Pernod Ricard in 2024

  3. LinkedIn and Rolls-Royce set to lay off 668 and 2,500 employees respectively to cut costs


Singapore Banks

What could surprise beyond 3Q results?

  1. Net Interest Margin (NIM) to continue showing divergence; Net Interest Income (NII) supported as rate cuts are pushed further out

  2. Intensifying competition amidst weak loan demand could start to erode loan yields beyond 3Q23

  3. Fee income and asset quality to remain largely stable in 3Q23

  4. Which local bank do we prefer?

  5. Click here to read our views

Singapore Technology

Site visit further validates Malaysia as a

key beneficiary of China +1

  1. Geopolitical uncertainties and supply chain resilience necessitate a China +1 strategy, benefitting other countries in Asia

  2. Malaysia stands to benefit with a lower cost structure, amongst other pull factors, with the bulk of net foreign direct investment (FDI) from the US

  3. Site visit to Aztech’s new plant in Johor validates our view that Malaysia is a key beneficiary of trade diversification out of China

  4. Which companies will be key beneficiaries of China+1?

  5. Click here to read our views

Keppel DC REIT (KDCREIT SP)

Acquisitions will drive upside to estimates

  1. Earnings in line with our estimates; 9M 2023 DPU of 7.543 Scts. forms slightly more than 75% of of FY23 projections

  2. Key positives: i) lease renewals in 3Q23 have all been positive, ii) minimal loan refinancing until FY26, iii) portfolio occupancy remained very healthy at 98.3%

  3. What we are watching out for: i) financing costs have been inching up mainly due to floating EUR-denominated loans, ii) impact of cap rate expansions on year-end portfolio valuations

  4. Do we expect the company to do any equity fundraising?

  5. Click here to read our views

JD.com Inc (9618 HK/JD US)

Marketplace expansion driving future growth outlook

  1. Expect JD Retail revenue growth to be flat y-o-y in 3Q23, revised down from our previous forecast of 3%

  2. Weaker consumption and strategic adjustment for FMCG segment are key reasons

  3. Why we continue to believe this company is a good buy?

  4. Click here to read our views

DBS Group Research | Equity Picks

Singapore Equity Picks: Read more

Hong Kong Equity Picks: Read more



 

UOB


UOBKH: Retail Market Monitor: Tuesday, October 17, 2023

Click on the link for details.




UOBKH: Regional Morning Meeting Notes: Tuesday, October 17, 2023 [GC Strategy, GC Commodities, 1368 HK, GOTO IJ, MAL Property, AZTECH SP, WHA TB, ERW TB]


Click on the link for details.




UOBKH: Country Dailies: Tuesday, October 17, 2023

Click on the link for Greater China Daily.


 

KGI



SIN: Economic Update - NODX to recover only from CY24

https://rfs.cgs-cimb.com/api/download?file=baf9fd98-9f47-4420-8a89-63afd290f671



Technical Analysis: 17 October 2023

🇸🇬 SG

Comfort Delgro Corp. (CD SP)

UMS Holdings Ltd. (UMSH SP)

🇭🇰 HK

China Shenhua Energy Co Ltd (1088 HK)

Yankuang Energy Group Co Ltd (1171 HK)




Top Stories, 17 Oct 2023


1. Stock futures are little changed as Wall Street look towards busy earnings week: Live updates

2. SGX FTSE China A50 Index Futures is the world’s only USD-denominated futures offering investors an efficient way to access the China A-share market.

Find out more: https://www.kgieworld.sg/futures/sgx-a50

3. Oil ends below $90 on Venezuela sanctions relief report, lack of Mideast catalyst

4. China to discuss advancing 2024 bond quota as local authorities struggle for liquidity

5. Bitcoin gives up gains after BlackRock denies ETF approval report


6. AUD/USD rally takes a breather below 0.6350, investors await RBA Meeting Minutes, US Retail Sales

-




 

CIMB


SIN: Aztech Global Ltd - Revenue could cross S$1bn by FY25F (ADD - Maintained)



Trendspotter of the day (SIN/HKG/MAL): 17th October 2023

Please refer to below for the technical charts of the day.

SIN

  • Early bullish trend in place

HKG

  • Bullish reversal confirmed

  • Bullish continuation likely

MAL

  • At all-time high

  • Triangle breakout



ASEAN: CGS-CIMB ASEAN Daily - 17 October 2023

Equity Research Reports....

▌ RECOMMENDATION CHANGES & INITIATIONS

THB: SC Asset Corporation (ADD, tp:THB4.96) - A resilient premium play (16/10)

▌ ECONOMIC & STRATEGY NOTES

IND: Economic Update - Tamer CAD; removal of Fed overhang next (16/10)

▌ SECTOR & COMPANY NOTES

IND: Construction (UNDERWEIGHT) - Indo Infra Week: Optimising investments (16/10)

IND: Construction (UNDERWEIGHT) - Indo Infra Week: Paving a sustainable toll road development plan (16/10)

MAL: IGB REIT (ADD, tp:MYR2.02) - Occupancy and rental rate surpassed pre-pandemic levels (16/10)

MAL: Utilities - Overall (OVERWEIGHT) - Budget 2024: Commitment to sustainability (16/10)

SIN: Aztech Global Ltd (ADD, tp:SGD1.23) - Revenue could cross S$1bn by FY25F (16/10)

▌ RECENT 'IDEAs OF THE DAY'...

MAL: Strategy Note - Budget 2024: policy continuity (14/10)

THB: Hana Microelectronics (ADD▲, tp:THB80.00▲) (ESG) - Multiple tailwinds to drive OP growth (10/10)

MAL: Strategy Note - One step at a time (4/10)

MAL: Economic Focus - Budget 2024 Preview: Tightening purses (2/10)

SIN: Singapore Post Ltd (ADD▲, tp:SGD0.60▲) - What’s next? (18/9)




APAC: ASIA Pacific Daily - 17 October 2023

Equity Research Reports....


▌ RECOMMENDATION CHANGES & INITIATIONS...

THB: SC Asset Corporation (ADD, tp:THB4.96) - A resilient premium play (16/10)

▌ TARGET PRICE CHANGES...

KR: SFA Engineering Corp (ADD, tp:KRW35,000.00▼) - Robust orders despite lower sales in FY23F (16/10)

▌ STRATEGY & ECONOMIC NOTES...

IND: Economic Update - Tamer CAD; removal of Fed overhang next (16/10)

▌ SECTOR & COMPANY NOTES...

IND: Construction (UNDERWEIGHT) - Indo Infra Week: Optimising investments (16/10)

IND: Construction (UNDERWEIGHT) - Indo Infra Week: Paving a sustainable toll road development plan (16/10)

MAL: IGB REIT (ADD, tp:MYR2.02) - Occupancy and rental rate surpassed pre-pandemic levels (16/10)

MAL: Utilities - Overall (OVERWEIGHT) - Budget 2024: Commitment to sustainability (16/10)

SIN: Aztech Global Ltd (ADD, tp:SGD1.23) - Revenue could cross S$1bn by FY25F (16/10)

▌ RECENT 'IDEAs OF THE DAY'...

MAL: Strategy Note - Budget 2024: policy continuity (14/10)

MAL: Economic Focus - Budget 2024: Raise revenue, cut spending (14/10)

THB: Hana Microelectronics (ADD▲, tp:THB80.00▲) (ESG) - Multiple tailwinds to drive OP growth (10/10)

MAL: Strategy Note - One step at a time (4/10)

MAL: Economic Focus - Budget 2024 Preview: Tightening purses (2/10)


 

Lim&Tan






 

MayBank




Mayora Indah (MYOR IJ)

by Willy Goutama

by Rachelleen Rodriguez

Berjaya Food (BFD MK) by Jade Tam Sabina (SABINA TB) by Suttatip Peerasub

by Jesada Techahusdin


Indonesia

Malaysia

Philippines

Singapore

Thailand

China

India

5 views0 comments

Comments

bottom of page