Ada Tam Ying Ying

Oct 10, 20239 min read

6 Oct2023 Reports

SGX

Economic Calendar :

https://x.edm.sgx.com/ats/msg.aspx?sg1=922377ccc77441fec24cada3cca67d0b

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 :

US Market (By Phillip Global Markets Night Desk)

06 October 2023

Market Wrap

US index futures fell and bond yields spiked higher after jobs data increased bets the Federal Reserve will have to raise interest rates this year.

Contracts on the S&P 500 were down 0.7% and the tech-heavy Nasdaq 100 tumbled 1%. The yield on 10-year Treasuries jumped to 4.82%. The 30-year bond approached recent multi-year high of 5%. Swap traders are now pricing in a one-in-two chance of a rate hike by December.

Today's Big News

- US Hiring Surges, Bolstering Case for Another Fed Rate Hike

- Exxon Nears Takeover of Pioneer, Its Biggest Deal Since 1999 (1)

- China’s Golden Week Tourism Nudges Past Pre-Pandemic Level

- Millennium Hires Diameter’s Friedman to Run Credit and Mortgages

- PGA-LIV Deal Faces Delay Over Antitrust, Players Demand Stake

- Arm Faces Wall Street Scrutiny After Biggest US IPO Since 2021

OCBC

DBS

US jobless claims increase 2,000 to 207,000 for the week ended Sep 30 vs 210,000 consensus estimate
General Motor’s share price falls to a three-year low amid strikes and potential air bag recall
Levi cuts full-year sales forecast after missing 3Q23 consensus, citing inflationary pressures on consumers

Latest changes: DBS Equity Picks

DBS Equity Picks have consistently outperformed market benchmarks since inception.

NEW ADDITION(S)

Increase Venture Corp in Dividend category (Singapore)

Regional Oil and Gas

Oil price rally loses steam, profit taking emerges

Reality check for oil after a heady rally, down 9% in last few days on economic concerns
This is despite OPEC+ maintaining supply cuts till end of the year at yesterday’s meeting and positive US crude inventory data
Oil majors are all trading down from their recent highs, in line with our call to take some profits off the table
Could better entry points emerge for upstream/integrated plays?
Click here to read our views

Stocks in net cash

Five stocks with a net cash position that could better ride higher-for-longer rates

Companies with net cash or low gearing tend to do better in a higher-for-longer rates environment, ceteris paribus
We screen stocks based on the following filters – BUY recommendation, net cash position, market capitalisation above S$500m
Which are the stocks that could better ride higher for longer rates?
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: Friday, October 06, 2023

Click on the link for Greater China Daily.

https://research.uobkayhian.com/content_download.jsp?id=75456&h=90e2c1c588ec83057eca3785efa7d06c

Click on the link for Indonesia Daily.

https://research.uobkayhian.com/content_download.jsp?id=75459&h=cfdfddcecec1b58a110af4e7ce8eda31

Click on the link for Malaysia Daily.

https://research.uobkayhian.com/content_download.jsp?id=75472&h=43e5b1428004ee5573dbf4638fe63f00

Click on the link for Singapore Daily.

https://research.uobkayhian.com/content_download.jsp?id=75445&h=5af582963d938835b53d24582fdfc20

Click on the link for Thailand Daily.

https://research.uobkayhian.com/content_download.jsp?id=75473&h=55181f808209178c075749d273bee8a

UOBKH: Retail Market Monitor: Friday, October 06, 2023

Click on the link for details.

https://research.uobkayhian.com/content_download.jsp?id=75444&h=a6b032cc13e531b6fc9824b18154da41

KGI

TRADING IDEAS: 🇸🇬 SINGAPORE

6 October 2023

🏙 ST Engineering Ltd. (STE SP): Expanding services

BUY Entry 3.86 – Target – 4.06 Stop Loss – 3.76

🏢 China Aviation Oil Singapore Corp. Ltd. (CAO SP): Tourism outshines amidst gloomy economic recovery

BUY Entry 0.87 – Target – 0.95 Stop Loss – 0.84

Technical Analysis: 6 October 2023

🇸🇬 SG

Sheng Siong Group Ltd. (SSG SP)

OCBC Bank. (OCBC SP)

🇭🇰 HK

Vitasoy International Holdings (345 HK)

Budweiser Brewing Co. APAC Ltd. (1876 HK)

CIMB

(BFW) Mapletree Logistics Leads Singapore REITs Lower on JPM Downgrade

Mapletree Logistics Leads Singapore REITs Lower on JPM Downgrade 2023-10-06 02:24:37.633 GMT By John Cheng

(Bloomberg) --

Mapletree Logistics Trust falls as much as 4.4%, leading declines in Singapore REITs, after JPMorgan downgraded nine names given downside risk from higher term premiums pushing US Treasury yields above 5%, as well as “potential consensus cuts”. * Investors should “wait for better entry points” even as Singapore REITs are trading on ~6% forward yield and partially pricing in prospects of higher-for longer interest rates and competition from other yield proxies, analysts including Mervin Song write in a note * Downgrades seven overweights to neutral (CLAR, CLAS, CICT, CDREIT, FEHT, FCT, KDCREIT) * Cuts MLT and KREIT to underweight; remains underweight on SUN * Sees CLAR, CICT and FCT as relative large-cap safe havens, and stays overweight small caps CLINT and CLCT * ASIAN ANALYST RATINGS: Upgrades, Downgrades, Initiations

MAL: CGS-CIMB Daybreak - 06 October 2023

▍ What's on the Table...

MAL: Sunway Construction Group Bhd (ADD, tp:MYR2.14) - New contract wins pave the way for potential additional RM6bn works - 6/10

Suncon clinches three contract wins worth RM532m, bringing YTD-5 Oct 23 new wins to RM2.2bn, exceeding its FY23F guidance of RM2bn. We see potential for RM6bn additional new orders from Song Hau 2 Vietnam power plant by Dec 23. Reiterate an Add rating, with an unchanged RM2.14 TP.

▍ News of the Day....

Trendspotter – MY- Puncak Niaga Holdings (6807) (Technical Buy, 0.40): Room to climb further?

• Malaysia’s accumulated fixed asset investment rose 2.8% to RM5.4tn in 2022

• Malaysia launches Hydrogen Economy and Technology Roadmap

• Vietnam willing to continue exporting rice to Malaysia at negotiated price

• Sunway Construction wins RM595.4m contract for distribution centre warehouse

• PetDag to install more EV charging hubs at its petrol stations nationwide

• Petronas to collaborate with Idemitsu Kosan to develop and distribute SAF

UOBKH: Regional Morning Meeting Notes: Friday, October 06, 2023 [GC Automobile, GC Healthcare, 823 HK, AMMN IJ, MNHB MK, PTTEP TB]

Click on the link for details.

https://research.uobkayhian.com/content_download.jsp?id=75443&h=5e920dca2fbeb852c6ec52cb2f27af02

CGS-CIMB SG/Msia Preview 06 Oct

SINGAPORE

DOW -10pts flat NDQ -16pts (-0.1%) SPX -6pts (-0.1%) WTI (-2.3%) GOLD (+0.1%)

US stocks remained relatively unchanged as traders awaited September job reports. US economy is expected to add 170,000 jobs last month, down from 187,000 jobs in Aug. Unemployment rate is also expected to fall 0.1% to 3.7%. US 10 Year Treasury remained unchanged at 4.72%. Oil prices extended losses for the second day as worries about fuel demand outweighed OPEC+ decision to cut oil output. FSSTI poised to open lower on downgrades of 9 local reits from foreign brokers. Focus of the day: local reits.

OTHER NEWS

* Capitaland Ascott (CLAS SP) renewed master lease agreements for 4 properties in France. Terms of renewed leases include higher rent to be received, co-sharing of renovation between lessors and lessees, duration of each master leases is 12 years, from 1 Dec 2023. * Siic Environment (SIIC SP) signed upgrading and expansion agreement for a 500k tonne project. * OKP Holdings Ltd (OKP SP) won a contract worth S$11.7M from PUB for drainage improvement works at several locations islandwide. Works related to the contract will be done by Sept 2026.

MALAYSIA

Bursa opened at its intra-day low of 1,412.17pts as market opened but immediately jumped and traded uptrend afterwards, reaching its intra-day high of 1,420.61pts before market closed for the first half of the day. The market maintained its uptrend for the second half however it ended 0.24 pts slightly lower at 1,415.60pts. Most sectors are Gainers with KLCON +1.24% in the lead while KLENG -1.02% was the biggest loser for yesterday. Expect market will continue drift sideways inanother tight range day. CORPORATE NEWS *Sunway Construction Group(SCGB MK) - its (SunCon) joint venture (JV) with construction firm Kajima (M) Sdn Bhd has won a RM595.4m contract to design and build a distribution centre warehouse for Daiso Malaysia Group Sdn Bhd in Pulau Indah, Selangor. *Petronas Dagangan(PETD MK) - has reiterated its commitment to installing more electric vehicle (EV) charging hubs at its petrol stations nationwide, with the number depending on demand and the number of EVs hitting the road. *IGB REIT(IGBREIT MK) - carried out a revaluation on two of its properties resulting in a revaluation surplus of RM166m. *Infomina(INFOM MK) - has secured a contract valued at RM35.4m from Bangkok Bank Pcl for the provision of technology application and infrastructure operation services. *Waja Konsortium(WAJA MK) - has secured a contract worth RM279.15m from TH Tebrau Land Sdn Bhd as the sub-contractor for a housing project in Johor Bahru. *Inta Bina Group(INTA MK) - its unit Inta Bina Sdn Bhd has received a RM100.5m contract to develop a 24-storey commercial building in Shah Alam, Selangor. *Cypark Resources(CYP MK) - unit Cypark Renewable Energy Sdn Bhd has signed a MOU with Trina Solar Development Pte Ltd to explore business opportunities in the renewable energy (RE) segment in Malaysia and cross-border. *Capital A(CAPITALA MK) - has requested to further extend the deadline for the company to submit its regularisation plan — which is due on 7 Oct — to 31 Dec 2023. *Kossan Rubber Industries(KRI MK) - Kossan Holdings (M) Sdn Bhd (KHSB), the largest shareholder of *Kossan Rubber Industries Bhd*, distributed its 14.35% stake in the public-listed glove manufacturing company to founding family members.