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Writer's pictureAda Tam Ying Ying

Market Update :Crossing the 1st half of 2023, Hooray to the Banks passed the Fed's Stress Test...

( My Recommendation 🉐 )

STI Market forecast for 1st half of July :


Bank shares led the US markets rallied before Independence day, after banks had passed the Fed's stress test last week. And tech sector was the winners in the first half of 2023 with Apple (+49%), Alphabet (+36%), Amazon (+55%), Meta (+138%), Microsoft (+42%), Nvidia (+189%). So the market concerns go back to when the interest rate hike can be really come to a stop.


For SG local market, we don't have any high profile Tech or AI counters for investors to put their money into. But the chip makers or semiconductor manufacturers may be the alternatives... but recently, some laggards are fighting their ways back like ComfortDelgro, Singpost, Starhub... they are making value-added announcement to boost their share price once again.


From now on, buy slowly whenever there's any drastic pull back...




Market Update for past 2 weeks

Investor's Must-Know


Past Economic Events to note last week:

Singapore


Hightlights

  • Singapore 'not closed' to options for moderating rent hikes [URL]

  • SIA shares fall 4.67% after report of Temasek selling 1.85% stake in airline [URL]

  • Beside Singapore's NODX is sliding, Taiwan electronic component export orders also continue slide in the month of April [URL]

  • Singapore technical recession fears grow after output plunge [URL]

  • Singapore manufacturing output for May down 10.8%, prompting economist to warn of technical recession


Economic Data (last weeks)

Core CPI : May yoy 5.0% to 4.7%

CPI : May yoy 5.7% to 5.1%; mom 0.1% to 0.3%

Industrial Production : May yoy -6.5% to -10.8%; mom -1.6% to -3.9%

Bank Lending : 792.5B to 798.8B



United States

US presidential election will be held in Nov 2024


Hightlights

  • Winners in first half of 2023: Tech Stocks

  • Powell says likely need two or more hikes to cool inflation

  • US economy 'quite resilient,' Fed Chair Jerome Powell says [URL]

  • Powell: There is “a long way to go” to get inflation, currently at 4%, down to 2%, the central bank's price stability target

  • Biden unveils election battle plan: 'Bidenomics'

  • US considering new restrictions on AI chip exports to China, Wall Street Journal reports

  • All major US banks pass Fed's annual stress test [URL] [URL]

Economic Data (last week)

Core Durable Goods Orders : May mom -0.6% to 0.6%

New Home Sales : May 680K to 763K

CB Consumer Confidence : Jun 102.5 to 109.7

GDP : qoq Q1 2.6% to 2.0%

Initial Jobless Claims : 265K to 239K

Pending Home Sales : May mom -0.4% to -2.7%

Core PCE Price Index : May yoy 4.7% to 4.6% mom 0.4% to 0.3%

Michigan Consumer Expectations : Jun 55.4 to 61.5

Michigan Consumer Sentiment : Jun 59.2 to 64.4



Other Countries

China, Hong Kong

Yellen's visit to China this Thurs. IF the meetings end on a positive note, and in addition China is willing to buy more US tresaury bills... Long the market.

Chinese Industrial Profit : Jun yoy: From -6.5% to -12.60% [URL]

Chinese Composite PMI : Jun From 52.9 to 52.3

Manufacturing PMI : Jun From 48.8 to 49.0

Non-Manufacturing PMI : Jun From 54.5 to 53.2


# (4 Jul) Caixin Manufacturing PMI : 50.5 vs 50.2 reuters poll; 50.9 Prior

# China hits back in the chip war, imposing export curbs on crucial raw materials [URL]

# China Kicks Off World Economic Forum's Summer Davos

# China's economy is set to grow faster in the second quarter, Premier Li Qiang says [URL]



Japan


# Tokyo Inflation Speeds Up Again as Japan's Output Sputters [URL]


Europe and Others

FTSE 100, DAX, CAC 40 and EURO STOXX 50


# Australia's central bank holds rates, signals more hikes might be required (Keep rates steady for July, at 4.1 per cent)

# Microsoft president goes to Europe to shape AI regulation debate




Coming Important Economic Data to take note:


➡️Singapore

Sunday, July 2, 2023 : URA Property Index (QoQ)

Monday, July 3, 2023 : Manufacturing PMI

Wednesday, July 5, 2023 : Retail Sales

Friday, July 7, 2023 : Foreign Reserves USD



➡️United States

Monday, July 3, 2023 : United States - Independence Day - Early close at 13:00

: ISM Manufacturing PMI

Tuesday, July 4, 2023 : United States - Independence Day Wednesday, July 5, 2023 : Factory Orders

: FOMC Meeting Minutes

Thursday, July 6, 2023 : ADP Nonfarm Employment Change

: Initial Jobless Claims

: S&P Global Composite PMI

: Services PMI

: ISM Non-Manufacturing PMI

: JOLTs Job Openings

: Crude Oil Inventories

Friday, July 7, 2023 : Average Hourly Earnings

: Nonfarm Payrolls

: Unemployment Rate


➡️China, HK

Sunday, July 2, 2023 : Caixin Manufacturing PMI

Tuesday, July 4, 2023 : Caixin Services PMI

: Chinese Composite PMI


 

Other Market Focus that Matters


📌 🌀Highlights🌀


  • Tesla smashed it last quarter but China’s BYD did even better [URL]

  • Apple scales back Vision Pro production plans on design challenges - FT [URL]

  • AI ETF [URL]

  • The United Arab Emirates plans to invest as much as $54 billion on renewables over the next seven years as part of efforts to reach net zero emissions by 2050

  • 2-year Treasury yield rises as investors assess interest rate and economic outlook

  • Nike's earning miss market expectation

  • Microsoft : New regulation pressure

  • Nvidia board member cashes out, selling $51 million worth of stock [URL]


Others

# ChatGPT creator OpenAI sued for theft of private data in ‘AI arms race’

# Biden says he thinks US economy will avoid potential recession

# Xi vows to protect foreign investors in charm offensive


# Goldman Sachs is in talks to exit Apple partnership, WSJ says

# Apple hits historic US$3 trillion milestone

# Ant Group developing large language model technology

# P&G to invest over $100 mil to set up new manufacturing facility in Singapore

# Southeast Asian GMV may grow 15% a year in 2022 – 2030 to exceed US$400 bil, says Bloomberg Intelligence

# Abu Dhabi unit plans to acquire 7% of Nio


Singapore :

  • Lawrence Wong to be new MAS chairman, Gan Kim Yong to be deputy chairman

  • 'Substantial risk' of Singapore entering technical recession in 1H2023: UOB

  • MAS grants IPA to crypto giant Ripple

  • MAS launches public consultations on coal phase-out, voluntary code of conduct for ESG rating agencies

  • MAS and SGX partner CDSC to strengthen global access to climate transition-related data

  • MAS-led consortium releases version 2.0 of open-source framework on responsible use of AI in finance

  • MAS penalises Citibank, DBS and OCBC for breaches of anti-money laundering requirements

  • Singapore buys record amount of biofuel feedstock from China

  • GIC to increase exposure to US-focused funds, says FT

  • GIC-backed US$2 billion fintech Nium targets US IPO in two years

*****************************

  • OCBC to invest more than $50 mil into banking Greater China, targets $3 bil incremental revenue by 2025

  • SATS and SingPost sign MOU for potential JV of e-commerce transhipment hub in Singapore

  • ComfortDelGro wins New South Wales outer metropolitan bus tender worth over A$200 mil

  • Healthway Medical shares up 39.4% after OUE Healthcare’s exit offer of 4.8 cents

  • Singapore Paincare Holdings acquires Boon Lay clinic for $1 mil

  • Polaris plans $393.6 million capital reduction

  • Olam Group appoints new directors to Olam Agri's board

  • Alpina secured contracts worth about $216.9 mil in 1H2023

  • Lian Beng loses free float, Ong family to compulsory acquire remaining shares

  • CDL acquires Nine Tree Premier Hotel Myeongdong II

  • ARA US Hospitality Trust proposes to sell Hyatt Place Oklahoma City Airport for US$8.0 mil

  • CapitaLand's $1.37 bil 'Geneo' redevelopment to help rejuvenate 40-year-old Singapore Science Park

  • Franklin Templeton launches new China A-Shares fund for Singapore retail investors

  • Sembcorp Industries files $134.1 million in arbitration claim over wind power project in India

  • Singapore Airlines drops most in over a year after block sale

  • ASML hit with new limits on chip gear exports to China

  • GuocoLand secures $974 mil green facility to refinance Guoco Tower, launches green finance framework

  • ISOTeam aims to raise $10.3 mil via 1-for-1 rights issue priced at 3 cents

  • Yangzijiang Shipbuilding clinches new orders worth US$5.6 bil ytd, bringing total to US$14.6 bill; Yangzijiang Shipbuilding wins order for three combination carriers from repeat customer

  • StarHub to establish $50 mil share buyback programme

  • Keppel expands energy-as-a-service offerings in China through Guangzhou Knowledge City

  • Alliance Healthcare to provide healthcare services to MBS

  • Beng Kuang Marine sells 31% of its Batam's shipyard property for $9.9 million

  • Trading of Challenger Technologies’ shares to be suspended after losing free float

  • ESR-LOGOS to divest seven non-core assets for $337.0 mil

  • SIA Engineering announces contract with Hawaiian Airlines

  • Penguin extends cash offer closing date to July 6

  • Q&M disposes stake in Shanghai Chuangyi Investment & Management for RMB500,000

  • Grab cuts 1,000 jobs, maintains on track to meet earnings target

  • Keppel announces new project that will generate $950 million for the group



📌 🌀SG Earning Announcement🌀

Watch out for the Second Quarter Earning reporting season in July 2023...


Nordic Group reports 1QFY2023 earnings of $5.8 million, up 11% y-o-y

XMH Holdings swings back into the black with 2HFY2023 earnings of $3.14 mil




📌

🌀Latest Market View published in ZaoBao/Media🌀

(June 2023)


Interview at ZaoBao on 29 June




📌

🌀SGX & Other Newsfeed🌀



 

CASH PLUS Promotion:

Low-commission trading account is available... and check out for Promotion Details

(Waived for US and HK Foreign Custody fee until 31 December 2022.)




 

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