(Update from 13 - 19 Dec and market forecast)
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US Federal Reserve raised rates another 50 basis points, signals more hikes to come next year (link)
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US CPI Inflation Falls To 7.1%
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US blacklists more Chinese tech companies, escalating trade fight
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Singapore's November NODX sinks below expectations with 14.6% y-o-y decline
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Points to Note
Real-money funds dump US$100 bil of stocks on rebalancing (link)
Keppel Offshore and Marine to pay US$65 million as resolution with Brazilian authorities
CapitaLand Investment establishes new logistics fund with partners to develop smart logistics infrastructure
Keppel acquires office tower in Seoul's CBD for $228.7 mil
Sembcorp completes 45.3% interest acquisition in Xingling New Energy in China
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My latest Market View published in ZaoBao in the month of December:
Market Summary dated on 17 Dec:
Market Summary dated on 16 Dec:
Market Summary dated on 14 Dec:
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To Investors :
Investment tip takeaway 🦉 this week:
Fed raised rate for another 50 basis points...and Singapore CPI this Friday
As festive is just around the corner, many fund managers could probably away for holiday, and STI should continue to range bound between 3220 support level and 3300 resistance level. The Singapore‘s CPI that directly tracks the local inflation, will be out this coming Friday. With the recent US CPI has fallen in the month of Nov, the market anticipates that our very own CPI should follow suit.
As stepping into a brand new year... there are few market focuses I want to throw light on include (1) TSMC has been expanding chip plant investment in United States, by constructing new building as its second chip factory in Arizona. This move not only threaten the existing U.S. chipmakers to scale back on investment, the global supply chain could also be affected as the entire industry need to undergo a certain extend of strategic changes in order to cater for this paradigm shift. In fact, the recent move of Warren Buffett selling BYD, and buying into TSMC had once again telling the market what is the future focus of the U.S. government will be...
(2) Investors need to take note of Federal Budget Balance (Nov) announced last Friday. Quoted from Reuter: "The November U.S. budget deficit jumped by $57 billion or 30% from a year earlier to $249 billion, a record for the month, as revenues fell and outlays for education, healthcare and interest on the public debt rose sharply, the U.S. Treasury said on Monday." This is terrifying, and I want to conscious investors who are active in investing into U.S. market, require to be very vigilant. And companies that possessed cross-bordered markets probably a better choice for your portfolio.
(3) Rising interest rate can impact the property market to certain extend as consumers need to keep up with the higher home loans. Since the Fed continues to stay with its hawkish stance, any commitment that required financing need to be well-thought for year 2023.
This is my last article for the year 2022, and I wish all of you have a MERRY MERRY CHRISTMAS AND A JOYOUS NEW YEAR.
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SG Earning Announcement
Watch out for the Final Year Earning reporting season in 2nd part of Jan 2023...
📍Economic Calendar: 19 - 23 Dec📍
Singapore
(Fri, Dec 23, 2022)
Core CPI YoY Nov
CPI YoY Nov
Industrial Production YoY/MoM Nov
United States
(Tue, Dec 20, 2022)
Building Permits
Housing Starts
API Weekly Crude Oil Stock
(Wed, Dec 21, 2022)
CB Consumer Confidence Dec
Existing Home Sales
Crude Oil Inventories
(Thu, Dec 22, 2022)
GDP
GDP Price Index
Initial Jobless Claims
(Fri, Dec 23, 2022)
Core Durable Good Orders MoM
Core PCE Price Index
Durable Goods Orders
Personal Spending
Personal Income
New Home Sales
🕳️
Next 2022 FOMC Meetings:
February 1, 2023
March 22, 2023
May 3, 2023
June 14, 2023
July 26, 2023
September 20, 2023
November 1, 2023
December 13, 2023
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Last Week Economic Data Review :
Singapore
Unemployment Rate (2.0% ➡️ 2.0%)
Non-Oil Exports YoY (-6.10% ➡️ -14.60%)
Non-Oil Exports MoM (-4.20% ➡️ -9.20%)
Trade Balance (4.024B ➡️ 3.047B)
United States
Federal Budget Balance Nov (-88.0B ➡️ -249.0B)
CPI YoY Nov (7.7% ➡️ 7.1%)
API Weekly Crude Oil Stock (-6.426M ➡️ 7.819M)
Export Price Index MoM (-0.4% ➡️ -0.3% )
Import Price Index MoM (-0.4% ➡️-0.6% )
Crude Oil Inventories (-5.187M ➡️ 10.231M)
Fed Interest Rate Decision (4.00% ➡️ 4.50%)
Core Retail Sales (1.2% ➡️ -0.2%)
Initial Jobless Claims (231K ➡️ 211K)
Philadelphia Fed Manufacturing Index (-19.4 ➡️ -13.8)
Retail Sales (MoM) (1.3% ➡️ -0.6%)
Industrial Production YoY (3.34% ➡️ 2.51%)
Manufacturing PMI (Dec) (47.7 ➡️ 46.2)
S&P Global Composite PMI (Dec) (46.4 ➡️ 44.6)
Services PMI (Dec) (46.2 ➡️ 44.4)
China / Hong Kong
CNY, Fixed Asset Investment YoY (5.8% ➡️ 5.3%)
CNY, Industrial Production YoY (5.0% ➡️ 2.2%)
CNY, Chinese Industrial Production (4.0% ➡️ 3.8%)
HKD, Unemployment Rate (3.8% ➡️ 3.7%)
“All great changes are preceded by chaos.” — Deepak Chopra
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Other Focus (Highlights of Results / Corporate Actions):
Other extracted news:
Frasers Property will not be redeeming the $300 mil fixed rate subordinated perpetual securities on first call date
GuocoLand will not be exercising redemption option on first call date of $400 mil subordinated perpetual securities
ValueMax raises $45.1 mil with close of three-month Series 005 digital securities
CDL acquires five PBSA assets in the UK for $357 mil
SingPost to raise rates
Willas-Array sees earnings drop 70% in 1HFY2023 due to foreign exchange loss
Union Gas to combine two wholly-owned subsidiaries into one
H2G Green to raise $1 mil by issuing 47.4 mil new shares to two investors
GIC-backed unicorn in talks to acquire Foodpanda in Thailand
Samudera to acquire 25% interest in LNG EW for US$14.8 million
Marco Polo Marine signs landmark MOU with Vestas Taiwan for the maiden deployment of its new CSOV
Nera Telecommunications wins contracts from SEA state-owned enterprise worth $19.3 mil
Bumitama Agri proposes internal restructuring exercise
Boustead Singapore raises stake in subsidiary; Sarine Technologies continues buybacks
Vibrant Group reports earnings of $3.5 mil for 1HFY2023, up 20.4% y-o-y
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SGX & Other Newsfeed
💡 SGX <Analyst Research>
SGX Research's 10 in 10 with The Trendlines Group (42T | TTGL SP)
The Trendlines Group is a leading Israel and Singapore-based investment group that incubates and invests in innovations in agrifood and medical technologies, with a large portfolio of companies ranging from early-stage start-ups to revenue-stage companies. The Group's experience, partnership network, and resources have been central in achieving its mission of investing in companies to improve the human condition through food and health.
Read more: bit.ly/3iZ5NYU
SGX Research - SREITs & Property Trusts Chartbook - December 2022
📊 S-REITs ended November 2022 with +5.7% in total returns, after a 5.6% decline in October, as interest rates and economic growth in key Asian markets continued to be key drivers. Top performing sub-segments within the S-Reits sector in November were data centre, diversified and industrial S-Reits which saw average total returns of 12%, 8% and 4% respectively.
📈 20 Stocks with Most Net Insti Inflow Returned 35% YTD
The 20 stocks that have seen the highest net institutional inflows in the 2022 year to 9 Dec, with combined net buying of S$3.6B, averaged 35% total returns for the past 49 weeks. As many as 17 of the 20 stocks outpaced the STI's 8% total return, and all 20 stocks outpaced the FTSE Asia Pacific Index 16% decline in total return.
Of the 20 stocks' S$3.6B in net buying, more than S$750M was contributed since 30 Sep, with 17 of the 20 stocks recording net institutional inflows over the 10 weeks, led by inflows to Sembcorp Marine, Genting SG and Singtel.
In addition to Sembcorp Marine, the 20 stocks included other non-STI stocks, with 5 of the non-STI stocks also maintaining less than S$1B in market value.
Read more: bit.ly/3UTjVzW
📈 REIT Watch on The Business Times - Healthcare S-REITs capture Japan opportunities with expanding footprint
There are 2 actively traded healthcare related S-REITs, namely ParkwayLife REIT and First REIT. Both ParkwayLife REIT (37.1% of its asset value) and First REIT (22.8% of its assets under management) have significant exposure to Japan nursing homes and healthcare-related properties through recent acquisitions.
ParkwayLife REIT now has 57 nursing homes in Japan worth S$872.9M as at Dec 31, 2021 across 17 prefectures and a tenant base across 30 nursing home operators.
First REIT now has 14 out of its 32 Asian healthcare assets in Japan nursing homes which are operated by 5 independent and experienced nursing home operators.
Read more: bit.ly/3BvwzhN
Closing
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