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Writer's pictureAda Tam Ying Ying

Market Update: Not time to buy yet

(Update from 12th - 17th October and market forecast)



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U.S.'s PPI and CPI were announced last week; and CPI which has been using to measure inflation, show consumer prices rose 0.4% in September and continue to climb higher to 8.2% from a year ago. However, the Initial Jobless Claims, in contrary, increased last month and that's worrisome to market as it signals for another possible aggressive rate hike in November.



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Points to Note

  • Singapore’s NODX eases to 3.1% in September as electronics exports decline from high base

  • MAS to re-centre the mid-point of the S$NEER policy band up to prevailing level

  • Singapore's GDP grows by 4.4% in 3Q2022: flash estimates


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My Interview with ZaoBao dated 11th Oct:


MARKET SUMMARY

For ZaoBao Subscriber, Click HERE



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To Investors :

Investment tip takeaway 🦉 this week:

Continue reduce holdings for this week whenever there's rebound... Market Sell down may continue in later part of this week..


STI further drift down from 3080 and had tested new support level of 3040 on last Friday, and today broke down below 3000 and closed at 3015.75 on Monday (17 Oct)


Fears started to grow in the market as CPI that used to measure inflations remained high and situation had gotten worsen with the increased Initial Jobless Claims suggested that the U.S. Federal Reserve may push for another aggressive interest rate hike in the coming Fed meeting in Nov.



SG Earning Announcement Dates



📍Economic Calendar: 17th - 22nd Oct📍

Singapore

(Sun, 16 Oct 2022)

Non-Oil Exports (MoM) Sep (-3.9% ➡️ -4.0%)

Trade Balance (3.738B ➡️ 5.750B)


United States

(Mon, 17 Oct 2022)

NY Empire State Manufacturing Oct, Federal Budget Balance

(Tue, 18 Oct 2022)

Exports YoY Sep, Import YoY Sep, Trade Balance USD Sep, Industrial Production Sep, API Weekly Crude Oil Swaps Aug

(Wed, 19 Oct 2022)

Building Permits Sep, Housing Starts Sep, Crude Oil Inventories (Thu, 20 Oct 2022)

Initial Jobless Claims, Philadelphia Fed Manufacturing Index Oct, Existing Home Sales Sep

🕳️

2022 FOMC Meetings:

November. 1-2 ; December. 13-14*


British

(Wed, 19 Oct 2022)

CPI YoY Sep


China

(Sun, 16 Oct 2022)

20th National Congress of the Chinese Communist Party (CCP)

(Mon, 17 Oct 2022)

GDP, Industrial Production YoY Sep, Chinese Unemployment Rate

(Wed, 19 Oct 2022)

PBoC Loan Prime Rate


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Last Week Economic Data Review :

Singapore

GDP (YoY) Q3 (4.5% ➡️ 4.4%)

GDP (MoM) Q3 (-0.2% ➡️ 1.5%)


United States

PPI (MoM) Sep (-0.2%➡️0.4%)

API Weekly Crude Oil Stock (-1.770M➡️7.054M)

Core CPI (YoY) Sep (8.3%➡️8.2%)

Core CPI (MoM) Sep (0.1%➡️0.4%)

Initial Jobless Claims (219K➡️228K)

Crude Oil Inventories (-1.356M➡️9.880M)

Core Retail Sales (MoM) Sep (-0.1% 0.1%)

Export Price Index (MoM) Sep (-1.7%➡️-0.8%)

Import Price Index (MoM) Sep (-1.1%➡️-1.2%)


China

CPI (MoM) Sep (2.5%➡️2.8%)

PPI (MoM) Sep (2.3%➡️0.9%)



 

"Don't be afraid of your fears"

 

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Other Focus (Highlights of Results / Corporate Actions):

Other extracted news:

  • Sembcorp receives investment licence to develop new industrial park in Vietnam

  • Chipmaker rout engulfs TSMC, Samsung with US$240 billion wiped out

  • Koh Brothers Group launches and prices $10.5 mil worth of notes with 6.5% coupon

  • K2 Data Centres and Sinarmas Land Limited enter into JV to develop hyperscale data centres in Indonesia

  • Keppel to begin charters for four rigs assets in Saudi Arabia

  • UG Healthcare plans to diversify its business into active retirement homes, healthcare & wellness centres

  • AEM lifts FY2022 revenue guidance to between $820 mil and $850 mil

  • Stamford Land issues profit warning for 1HFY23, mainly due to FX losses

  • TSMC cuts capital spending 10% in a warning for tech sector


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SGX & Other Newsfeed

💡 SGX <Analyst Research>



📈 Retail S-Reits see double-digit pickup; downtown malls shine


Retail sales in Singapore +13% YoY in August, marking its 5th consecutive month of double-digit YoY growth.


SGX lists 7 S-Reits with significant exposure to Singapore-based retail assets: CapitaLand Int Comm Trust, Mapletree Pan Asia Comm Trust, Suntec Reit, Frasers Centrepoint Trust, SPH Reit, Lendlease Global Comm Reit, and Starhill Global Reit.


CapitaLand Int Comm Trust reported 15.9% YoY growth in retail tenant sales and 12.5% YoY growth in shopper traffic for 1H22. Double-digit growth was led by downtown malls with 26.4% YoY growth in tenant sales and 14.5% YoY growth in shopper traffic.


To read the full article: bit.ly/3TaZdew


📈 3Q22 Share Buyback Consideration of Primary Listings Total S$586M


In 3Q22, 46 primary-listed companies bought back shares with a total consideration of S$586M, bringing the total buyback consideration for the first nine months of 2022 to S$1.54B, up c.150% from S$609M for the same period in 2021.


Of the 10 stocks that led the buyback consideration tally in 3Q22, 9 have also led the buyback consideration tally for the first nine months of 2022. These stocks were Keppel Corporation, Wilmar International, Oversea-Chinese Banking Corporation, CapitaLand Investment, Yangzijiang Financial Holding, The Hour Glass, Singapore Telecommunications, Singapore Technologies Engineering and OUE.


Notably, The Hour Glass commenced a new buyback mandate in 3Q22, with 2.05% of its shares bought back between 3 Aug and 30 Sep. This saw the leading specialist watch retailer buy back 13.95M shares in 3Q22, at an average price of S$2.23 per share.

Read more: bit.ly/3yvfSSf


[Partner' Post] UOB Asset Management

UOB APAC Green REIT EFF Fund Commentary (Jul 2022)


Despite of the negative factors such as the rising interest rate and rising bond yields against a backdrop of heightened geopolitical risks and concerns over stagflation, the REITs market recovered in July 2022. The performance of the Fund for the month of July was elevated by Australia market while Hong Kong market was the main drag.


Learn more about the UOB APAC Green REIT ETF in the latest fund commentary and how green REITs can continue to present itself as an compelling asset class by delivering both investment and sustainable propositions for investors ➡️ bit.ly/3SVeuk5


💡<Analyst Spotlight for 13 Oct 2022>

Koda Ltd (BJZ): Macro headwinds ahead (SAC Capital)

- FY22 revenue (US$79m) and earnings (US$ 5.7m) have declined 4% and 38% respectively.

- Maintain Buy recommendation with a target share price of S$0.64 (current S$0.55 at 30 August 2022)


Vicplas International Ltd (569): Pressured by higher costs (CGS-CIMB)

- FY22 net profit of S$8.8m (-15.0% yoy due to higher operating costs) in line with expectations at 98.2% of full-year forecast. ​

-Reiterate Add recommendation with a target share price of S$0.27 (current S$0.185 at 26 September 2022)


Pan-United Corporation Limited (P52): Short Term Pain, Long Term Gain (Lim & Tan Securities)

- With the recent announcement of 6 more stations on the Cross Island Line slated to open in 2032 and an estimated 21,000 new units/year of HDB flats in the next 3 years, outlook for the construction sector remains strong.

- Maintain Buy recommendation with a target share price of S$0.54 (current S$0.43 at 23 September 2022)


Forging a Digital Future for Healthcare

Recently, we spoke with Dr Bernard Ng, Chairman and CEO of Meta Health Ltd. Read on to find out how the 48-year-old plans to target organic and inorganic growth avenues to realise the Group's vision of becoming a leading healthcare services company in Southeast Asia.

To read the full Kopi-C interview: bit.ly/3S2KdOZ


SGX Research - SREITs & Property Trusts Chartbook - October 2022

📊 S-Reit ETFs continue to see inflows, doubling AUM in 2 years. The combined AUM of the 5 Reit ETFs listed on the SGX has doubled in 2 years, exceeding S$900M (Sep 2022), and representing over half the S$1.7B combined AUM of Reit ETFs in Asia-Pacific ex-Japan globally.

➡️ For full report: bit.ly/3EH4PJM



Closing


With the rising interest rate, I believed investors are getting more more risk-averse with the current economic situation, would seriously consider to park their money in fixed deposit with the bank to earn higher interest. And now, you may consider to earn a higher interest return with the idle cash that standby inside your trading account while awaiting for trading opportunities... Try our Phillip Money Market Fund SGD : 2.1330% p.a.

USD : 1.8877% p.a.

Rates updated as of 17 October 2022

 

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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