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Writer's pictureAda Tam Ying Ying

Market Update : Everything seem fine until "FITCH CUTS US RATING TO AA+ FROM AAA"...

( My Recommendation 🉐 )

STI Market forecast for 1st half of August:


Since 14 July, STI had broken out from the descending trendline, and continuously broke up from 3 resistances of 3270 points, 3330 points and 3370 points. From now, the ongoing announcements of corporate earnings will drive the momentum of STI. And the key support should stay at 3330 points if Singapore economy remains resilient... But yesterday, the news on US rating downgraded by Fitch from AAA to AA+, had shaken the entire markets and fear sparked among investors and fund managers to reduce positions and sell down the global stock markets. Even now we are in the midst of the reporting seasons, the superb corporate earnings seem being erased off by the rising concerns of whether the lower US ratings by Fitch could affect the U.S. dollars. As the matter of fact, when an issuer of debt (US Treasury Bills) has its credit rating downgraded, often means it has to pay a higher interest rate to compensate for the potentially higher risk of default it poses. [Link] As such, while many fund managers are still worrying about the possibilities of recessions, this shocking news comes unexpectedly nerve-wracking, after all U.S. dollar being the most traded currency in the world, must retain its leading status to avoid any financial "catastrophe" as mentioned previously by US Secretary of the Treasury, Janet Yellen. With so much of the explanations, I still believe 2024 is a better year (will elaborate more in my 2024 forecast in Dec), but investors may consider to re-allocate portfolio of stocks by adjusting the weightages from the previous well-liked sectors like banks, Reits... to adding more technologies and ESG related counters, to ensure the portfolio is better diversified and more environmental centric...


STI is soon celebrating the Singapore's 58th years of independence next week... and whether more rallies can come before national day... I think the likelihood is more consolidation needed at 3300 level than another new high. But investors do not short sell now, as I still think it is better to buy at dip for the coming 2 months than shortselling.


Immediate support at 3300 level :





Market Update for past 2 weeks

Investor's Must-Know



Singapore result reporting season time table:



 

Other Market Focus that Matters


📌 🌀Highlights🌀


  • Singapore’s manufacturing output down by 4.9% in June with most clusters in the red

  • Singapore’s headline inflation down to 4.5%, core inflation down to 4.2% in June (update)

  • CapitaLand Ascott Trust to raise $300 mil, proposes to acquire three lodging assets for $530.8 mil

  • Great Eastern confirms it is in talks to buy Malaysian insurer AmMetLife

  • Wilmar to dispose 30.05% stake in sugar production business for $813.2 mil

  • Milkyway Chemical makes firm offer of 22.66 cents per share for LHN Logistics; offer price said to be final

  • Sanli Environmental to divest leasehold property at 28 Kian Teck Drive for $4.95 mil

  • Keppel disposes of 50 mil Seatrium shares at 14.52 cents each

  • CSE Global bags two contracts worth $86.4 mil, one with Singapore government to last till 2028

  • OCBC collaborates with UnionPay QR to expand cross-border payment options

  • EMA seeks bid for new power plant, introduces minimum net worth for electricity retailers

  • Wilmar to dispose 30.05% stake in sugar production business for $813.2 mil

  • Wing Tai rescinds contract for the collective purchase of Holland Tower

  • Geo Energy Resources to spend up to US$200 million to double down on coal

  • Keppel REIT signs renewable energy solutions tenant for Japan office building, doubling occupancy to nearly 75%

  • Boustead Singapore’s 88.2%-owned Australian business unit awarded landmark A$48 mil geospatial contract

  • Sembcorp Industries will not sell its waste management unit




📌 🌀SG Earning Announcement🌀

Watch out for the 2023 SG Earnings Season start in July 2023...


  • DBS reports record net profit of $2.69 bil in the 2QFY2023, up 48% y-o-y; declares dividend of 48 cents per share

  • CapitaLand Ascendas REIT DPU slips 2.0% y-o-y despite higher 1HFY2023 net property income

  • Daiwa House Logistics Trust reports 1HFY2023 DPU of 2.61 cents, up 0.4% y-o-y

  • OxPay Financial to report net loss for 1HFY2023

  • First REIT reports 1HFY2023 DPU of 1.24 cents, 6.1% down y-o-y

  • CICT reports 1HFY2023 DPU of 5.3 cents, 1.5% higher y-o-y

  • Japfa sinks into the red with US$53.6 mil loss in 1HFY2023 owing to high raw material costs, inflation

  • Oiltek reports 44.5% higher net profit in 1HFY2023, eyes greater revenue from renewable energy segment

  • MPACT 1QFY2024 DPU falls 3.1% q-o-q from higher utility, financing costs

  • Keppel REIT reports 2.4% lower DPU of 2.90 cents for 1HFY2023

  • CapitaLand India Trust reports 22% lower 1HFY2023 DPU of 3.36 cents due to higher finance costs and enlarged unit base

  • Raffles Medical reports 1HFY2023 earnings of $59.9 mil, up 0.5% y-o-y

  • Koh Brothers Group and Koh Brothers Eco Engineering guide for net loss in 1HFY2023

  • Jardine Matheson Holdings reports 1HFY2023 earnings of US$566 mil, 34% up y-o-y

  • Jardine C&C reports 1HFY2023 earnings of US$648 mil, up 33% y-o-y

  • Hotel Properties Limited guides for net loss in 1HFY2023 on higher interest costs and share of losses

  • Mandarin Oriental reverses into profit of US$28 mil, driven by recovery of key owned hotels in Asia

  • Hongkong Land reports US$333 mil loss for 1HFY2023; underlying earnings down 1% y-o-y to US$422 mil

  • DFI Retail Group returns to profitability with US$8 mil in 1HFY2023 earnings; underlying profit reverses into US$33 mil

  • CDLHT reports 23% y-o-y surge in 1HFY2023 DPS of 2.51 cents

  • Starhill Global REIT reports 2HFY2022/2023 DPU of 1.98 cents, down 2.0% y-o-y

  • Far East Hospitality Trust reports DPS of 1.92 cents for the 1HFY2023, up 24.7% y-o-y

  • Seatrium reports $264.4 mil loss for first-ever 1HFY2023 results since combination

  • CLAS reports 1HFY2023 distribution of 2.78 cents, up 19% y-o-y

  • Digital Core REIT reports a lower DPU of 1.92 US cents, a 6.8% y-o-y drop for 1HFY2023

  • UOB reports net profit of $1.4 bil for 2QFY2023, 27% higher y-o-y; declares interim dividend of 85 cents per share

  • Samudera Shipping's 1HFY2023 earnings down 61.2% y-o-y as shipping rates normalise

  • HC Surgical Specialists reports another year of lower earnings at $2.8 million for FY2023

  • SIA posts record quarterly net profit of $734 million for 1QFY2024, nearly doubling y-o-y

  • Sale of offshore and marine unit lifts Keppel Corp's 1HFY2023 earnings to record $3.6 billion

  • CLCT reports 1HFY2023 DPU of 3.74 cents, eyes better 2H

  • AIMS APAC REIT reports 1QFY2024 DPU of 2.31 cents, 1.3% higher y-o-y

  • Mapletree Industrial Trust reports DPU of 3.39 cents for 1QFY2024, 2.9% lower y-o-y

  • Yoma Strategic Holdings reports 110% y-o-y change in group revenue of US$44.1 million in 1HFY2023

  • Olam Group to report ‘materially lower’ 1HFY2023 patmi due to lower crop yield and higher interest costs

  • Keppel Infrastructure Trust reports 1% y-o-y increase in 1HFY2023 DPU of 1.93 cents

  • GKE Corp reports FY2023 earnings of $3.91 million

  • KORE reports 2QFY2023 DPU of 1.25 cents, down 12.6% y-o-y, due to higher financing costs

  • Suntec REIT’s 1HFY2023 DPU drops by 27.7% y-o-y to 3.476 cents on higher financing costs and weaker forex

  • Parkway Life REIT reports 1HFY2023 DPU of 7.29 cents, up 3.3% y-o-y

  • ESR-LOGOS REIT’s 1HFY2023 DPU falls by 5.6% y-o-y to 1.378 cents mainly on enlarged unit base

  • FCT reports portfolio occupancy of 98.7% for 3QFY2023

  • SLB Development reports loss of $2.8 mil for the 2HFY2023

  • iFast reverses into earnings of $3.3 mil for 2QFY2023; expects to see improvements in profitability from 2HFY2023

  • SIA Engineering Company reports 'more than double' y-o-y net profit of $27 million

  • Mapletree Logistics Trust holds 1QFY2024 DPU steady at 2.271 cents

  • Hutchison Port Holdings Trust reports 86.8% lower earnings of HK$94.9 mil; to pay DPU of 5.50 HK cents for 1HFY2023

  • Southern Packaging expecting net loss for 1HFY2023, similar report issued a year ago

  • Keppel DC REIT reports stable 1HFY2023 DPU of 5.051 cents



📌

🌀Latest Market View published in ZaoBao/Media🌀

(Aug 2023)


Interview at ZaoBao on 1 Aug





📌

🌀SGX & Other Newsfeed🌀



 

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