Economic Calendar :
SGX
Phillip Capital Market Reports:
Phillip Daily Morning Note :
US Market (By Phillip Global Markets Night Desk)
28 September 2023
Final 2Q23 GDP Report Due Today
The Commerce Department will update its forecast for 2Q23 GDP this
morning. Last month, in its second estimate, the government indicated that 2Q
GDP rose at an annualized 2.1% pace, up slightly from the 2.0% growth rate
in 1Q23. We think that rate will hold steady, though we note that any surprise
is likely to occur on the upside. As is typically the case, the report will
indicate areas of strength and weakness in the economy. On the positive side,
the consumer appears to be in good shape, with Personal Consumption
Expenditures expanding at a 1%-2% pace, driven by spending on Services.
Companies continue to invest in R&D projects and software, as Investments
into Intellectual Property are advancing at a rate that is faster than overall
GDP growth. Government spending has picked up as well during the past
year. On the downside, Residential Investment has weakened as interest rates
have risen, though the sector seems to be bottoming; and Exports of Goods
have been challenged by the strong dollar. The GDP report also includes an
inflation measure, the PCE Price Index. This index, excluding food and
energy, is rising at a 3.7% pace, well ahead the Federal Reserve's inflation
target of 2.0%. We don't expect the results of this report to move the markets
much, as the data is already almost three months old. The first report on 3Q23
GDP will come out later in October. The current reading of the Atlanta Fed's
GDPNow indicator is 4.9%. The current Argus forecast, last published in our
Viewpoint report, is not quite as aggressive at 4.0%, but still likely reflects the
high-water-mark for GDP growth in 2023.
Market Wrap
Global bonds resumed their selloff Thursday, pushing the benchmark Treasury yield to a new 16-year peak. A rally in oil paused and stock markets steadied.
Traders are pushing yields higher on speculation that US policymakers will keep policy tight as oil prices fan inflation. The benchmark 10-year yield rose four basis points to 4.64%.
Today's Big News
- Evergrande Says Chairman Under Measures on Suspicion of Crime
- T. Rowe Shorts Treasuries as Yields Risk Climbing to 5.5% on Fed
- China Names Lan Fo’an as Party Chief of Finance Ministry
- US Weekly Jobless Claims Rose 2K to 204K; Est. 215K
- Russian Oil Is Trading Closer to $100 Than the G-7 Price Cap
- GameStop’s Billionaire Backer Cohen Replaces Ousted CEO
OCBC
DBS
US crude oil inventories fell by 2.2m barrels, reaching lowest level of the year
Meta releases AI chatbots for Instagram, Facebook and WhatsApp
Micron’s 4Q EPS of -US$1.07 beats estimates, guided for higher than expected losses in 1Q
First REIT (FIRT SP)
Units pledged by Sponsor, expect some unknowns
Sponsor Group has pledged a total of c.28% of First REIT’s units, use of proceeds likely to be for investment purposes
Not the first time that Sponsor Group has pledged First REIT’s units, noting their preference to pledge First REIT shares given its liquidity
What are the implications of this share pledge?
Click here to read our views
Alibaba Group Holding Ltd (9988 HK/BABA US)
Proposal to spin-off and separately list Cainiao at HKEx
Alibaba announced to list its logistics unit Cainiao, and expects to retain c.50% ownership, vs 69.5% currently
Market estimates Cainiao’s valuation at c.US$20bn, which translates to c.HK$5 per share for Alibaba
Which entities we believe will be spun off next?
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: Thursday, September 28, 2023
Click on the link for Greater China Daily.
Click on the link for Singapore Daily.
Click on the link for Thailand Daily.
UOBKH: Retail Market Monitor: Thursday, September 28, 2023
Click on the link for details.
UOBKH: Regional Morning Meeting Notes: Thursday, September 28, 2023
Click on the link for details.
CIMB
Please refer to below for the technical charts of the day.
SIN
Bullish continuation?
HKG
Breaking out of the bottom range
KGI
Top Stories, 28 Sep 2023
1. Asia markets slide as oil and Treasury yields climb
2. Bursa Malaysia East Malaysia Crude Palm Oil Futures (FEPO). FEPO is a Ringgit Malaysia ("MYR") denominated Crude Palm Oil Futures Contract traded on Bursa Malaysia, complementing the existing FCPO contract with specifications designed to meet the needs of market participants with exposure to the East Malaysia palm oil market.
Find out more: https://www.kgieworld.sg/futures/bursa-malaysia-fepo
3. Stock Market News, Sept. 27, 2023: Bond Yields Top 4.6%, Dow Finishes Lower
4. SEC Told to Approve Bitcoin Spot ETF ‘Immediately’ by Congress
5. China’s Xi Jinping appeals to decades-old mantra of reform and opening up, as economy slows and foreign investors ponder leaving
6. Gold Price Forecast: XAU/USD remains under pressure below $1,900 amid stronger USD, eyes on US data
Technical Analysis: 28 September 2023
🇸🇬 SG
AEM Holdings Ltd. (AEM SP)
Frencken Group Ltd. (FRKN SP)
🇭🇰 HK
Wuxi Biologics Cayman Inc (2269 HK)
Innovent Biologics Inc (1801 HK)
Read More: https://www.kgieworld.sg/research/sep28ta23
CIMB
APAC: ASIA Pacific Daily - 28 September 2023
Equity Research Reports....
▍IDEA OF THE DAY (IOD)...
HKG: Property - Overall (NEUTRAL) - Time to lift some of the “harsh measures” (27/9)
We think HK government will lift some harsh measures taken since 2012, to stabilise the property market and attract talent in the long run. HK government should exempt professionals/talent buying HK residential property from having to prepay taxes equivalent to c.30% of property value. The government should also consider the re-introduction of CIES and lower the transaction tax rate for foreign buyers with working visas, in our view. We believe the lifting of harsh measures could lead to sector re-rating. Our top picks are SHKP, CK Asset and Sino due to their solid balance sheets.
▌ RECOMMENDATION CHANGES & INITIATIONS...
THB: SCG Packaging (REDUCE▼, tp:THB36.00▼) - Fajar acquisition provides little to toast (27/9)
▌ TARGET PRICE CHANGES...
MAL: Gamuda (ADD, tp:MYR5.65▲) - Raising the revenue bar higher (27/9)
▌ STRATEGY & ECONOMIC NOTES...
THB: Economic Update - Never say never… this might not be the peak (27/9)
▌ SECTOR & COMPANY NOTES...
CHN: Banks (NEUTRAL) - Improving corporate asset quality (27/9)
KR: Samsung Heavy Industries (ADD, tp:KRW10,900.00) (HC) - Bottom fishing opportunity (27/9)
▌ RECENT 'IDEAs OF THE DAY'...
CHN: Navigator-Strategy - Ride out of the bottom (25/9)
SIN: Singapore Post Ltd (ADD▲, tp:SGD0.60▲) - What’s next? (18/9)
THB: Retail (OVERWEIGHT) (ESG) - Stronger after the storm (15/9)
MAL: Malaysia Airports Holdings (ADD▲, tp:MYR7.76▲) - Exciting times to return (13/9)
THB: Oil & Gas Refinery (UNDERWEIGHT) - Diesel-led GRM recovery in 2H23F (12/9)
ASEAN: CGS-CIMB ASEAN Daily - 28 September 2023
Equity Research Reports....
▌ RECOMMENDATION CHANGES & INITIATIONS
THB: SCG Packaging (REDUCE▼, tp:THB36.00▼) - Fajar acquisition provides little to toast (27/9)
▌ TARGET PRICE CHANGES
MAL: Gamuda (ADD, tp:MYR5.65▲) - Raising the revenue bar higher (27/9)
▌ ECONOMIC & STRATEGY NOTES
THB: Economic Update - Never say never… this might not be the peak (27/9)
▌ RECENT 'IDEAs OF THE DAY'...
SIN: Singapore Post Ltd (ADD▲, tp:SGD0.60▲) - What’s next? (18/9)
THB: Retail (OVERWEIGHT) (ESG) - Stronger after the storm (15/9)
MAL: Malaysia Airports Holdings (ADD▲, tp:MYR7.76▲) - Exciting times to return (13/9)
THB: Oil & Gas Refinery (UNDERWEIGHT) - Diesel-led GRM recovery in 2H23F (12/9)
THB: Hospitals (OVERWEIGHT) - A race for medical tourism in Thailand (8/9)
Lim&Tan
MayBank
SG: SG DAILY NEWSLETTER HK: DIM SUM DAILY SG: SINGAPORE ECONOMICS MY: GOVERNMENT BOND AUCTION RESULTS: 5Y GII REOPENING
Sea Ltd (SE US) TRUE Corp (TRUE TB) Mynews Holdings (MNHB MK)
V.S. Industry (VSI MK)
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