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Writer's pictureAda Tam Ying Ying

Market Update: Short Week... Have a good rest.... Stay defensive

( My Recommendation 🉐 )

Market forecast as we enter into the month of June :


Sell first...


Short week of only 4 working days for Singapore stock market this week, STI fell back on the support level of 3185, largely affected by the worrisome U.S. economic outlook that currently facing numerous issues like the debt ceiling, inflation threat, the strained Sino-US relations. The recession worries continue hammer a few Asia indexes to revisit or even break the support level except Japan (Nikkei 225) and India (BSE SENSEX). My 2 cents worth for this week is very remain unchange, still sell and hold more cash even STI is showing a possible formation of MACD golden cross. Have a good long weekend. The uncertainities in the markets will not go away so soon even the debt ceiling talks is ongoing to make the deal.






Market Update for 15-20 May 2023

Investor's Must-Know


Past Economic Events to note last week:

Singapore


Hightlights

  • Singapore maintains 2023 GDP growth projection to range between 0.5% to 2.5%

  • Singapore's faster-than-expected inflation signals sticky prices


Economic Data (last week)

Core CPI Apr yoy 5.0% to 5.0%

CPI Apr yoy 5.5% to 5.7%

GDP Q1 yoy 2.1% to 0.4%; qoq -0.7% to -1.6%

Industrial Production Apr yoy -3.8% to -6.9%; mom 9.7% to -1.9%


United States

US presidential election will be held in Nov 2024


Hightlights

  • All eyes on US's debt Ceiling, Potential Debt Default and Interest Rate Hike

  • Two Fed officials say more interest-rate raises may be needed to cool prices

  • # US AAA Credit Rating May Be Cut by Fitch on Debt-Limit Impasse

    • America’s hyper partisanship could cost it its sterling AAA credit rating, Fitch warns

    • Asia: Most markets down as US debt impasse sparks Fitch ratings warning [BusinessTimes]


Economic Data (last week)

Building Permits mom: -7.7% to -1.4%; 1.430M to 1.147M

New Home Sales Apr mom: 4.0% to 4.1%; 656K to 683K Manufacturing PMI May: 50.2 to 48.5

S&P Global Composite PMI May: 53.4 to 54.5 Service PMI May: 53.6 to 55.1

Crude Oil Inventories 5.040M to -12.456M Treasury Secretary Yellen Speaks [Bloomberg]

FOMC Meeting Minutes [Bloomberg] Initial Jobless Claims 225K to 229K

GDP Q1 qoq: 2.6% to 1.3%

GDP Sales Q1: 1.1% to 3.4%

Pending Home Sales -5.2% to 0.0%

Reserve Balances with Federal Reserve Banks 3.280T to 3.251T

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

Personal Spending Apr mom: 0.1% to 0.8% Michigan Consumer Sentiment May: 63.5 to 59.2


Other Countries

China, Hong Kong

China-US relations

# China rejects US request for a meeting in Singapore between defence chiefs Li, Austin

Investors need to be very careful with the rising tension between the strained Sino-US relations, as the matter of fact HSI entering the Bear Market and the US economy outlook is worsening.

# China's MICRON Ban episode... let's watch on

# China’s industrial profits tumble 18% in April as demand sputters [CNBC]


China's Industrial Profit, Jun yoy: -6.5% to -18.20%

China's Industrial Profit YTD, Apr: -21.4% to -20.6%


Japan & India

Date : 30 May 2023:

India and Japan... best performing indexes in Asia so far in 2023


India:

  • Sensex surges 500 points, Nifty Bank hits record high

Japan:

  • Japan's Nikkei hits 1990 high on weak yen, US optimism; SoftBank surges [aljazeera]

  • Japan PM Fumio Kishida's Son Fired After Scandal Over Magazine Photos

  • Yen dips after Japan's top finance diplomat says watching forex moves


Europe and Others

FTSE 100, DAX, CAC 40 and EURO STOXX 50

Clean Energy, Renewable, Food prices, Oil & Gas... will continue be the market focus

Goldman Sachs outlook on Energy Sectors :

  • Goldman Sachs seeks Japan investments for $1.6bn green fund

  • Goldman Sees China Nearly Tripling Its Target for Wind and Solar



Coming Important Economic Data to take note:


➡️Singapore

Tuesday, May 30, 2023 : Bank Lending

Friday, June 2, 2023 : Singapore Holiday - Vesak Day

: Retail Sales

Saturday, June 3, 2023 : Manufacturing PMI


➡️United States

(Next FOMC : June 13-14)

Monday, May 29, 2023 : US Holiday - Memorial Day

Tuesday, May 30, 2023 : CB Consumer Confidence

Wednesday, May 31, 2023 : JOLTs Job Openings

: Chicago PMI Thursday, June 1, 2023 : Initial Jobless Claims***

: ADP Nonfarm Employment Change

: Nonfarm Productivity

: Manufacturing PMI

: ISM Manufacturing PMI

: Crude Oil Inventories

: Fed's Balance Sheet

: Reserve Balances with Federal Reserve Banks

Friday, June 2, 2023 : Nonfarm Payrolls

: Private Nonfarm Payrolls

: Participation Rate

: Unemployment Rate


➡️China, HK

Tuesday, May 30, 2023 : CNY's Chinese Composite PMI

: CNY's Manufacturing PMI : CNY's Non-Manufacturing PMI : HKD's Exports

: HKD's Imports

: HKD's Trade Balance

Wednesday, May 31, 2023 : CNY's Caixin Manufacturing PMI Thursday, June 1, 2023 : Retail Sales


 

Market Focus that Matters


📌 🌀Highlights🌀


# Ford EVs to get access to Tesla's Supercharger network

# Warren Buffett Sees Uncertainty In The EV Market [link]

# ARKK dumped Nvidia before Surge [coingape]

# Las Vegas Sands and Sands China Host Grand Celebration at The Londoner Macao # New Zealand raises key interest rate to 5.5% from 5.25%, NZ central bank signals done raising rates after hiking to 14-year high

# Cut Stocks, Buy Gold, Hold Your Cash, JPMorgan’s Kolanovic Says

# Saudi Arabia's Energy Minister Tells Short Sellers To 'Watch Out'

# Nvidia shares surge to record close with 24% rally

# Nvidia's blowout forecast sparks huge rally in all things AI

# Wall Street is rethinking its gloomy outlook for stock market [Bloomberg]

# 'Traditionally unpopular' Japanese equities, at 33-year high, set to still outperform: Fidelity International

# World's richest man loses US$11 bil after LVMH stock rout

# Carl Icahn is US$15 billion poorer after hunter becomes the hunted

  • Singapore : MAS to launch consultation on qualifying managed phase-out of coal-fired power plants

  • SGX launches depository receipts through linkage with Stock Exchange of Thailand

  • Temasek Holdings cuts pay of those responsible for the investment in FTX; says it is ‘disappointed’ with the outcome

  • Cayman Islands could bring the fight for Asian capital to Singapore’s doorstep: FT [The Edge]

  • Challenger's chairman Loo teams up with Dymon for another 56 cents privatisation bid

  • Olam Agri IPO not happening in 1H2023

  • ISOTeam secures $50.7 mil in contracts led by projects from the public sector

  • UOB and Keppel join forces to provide solutions supporting businesses' sustainability and digitalisation journeys

  • Keppel Corp and Keppel Vietnam Fund to take stake in two residential projects in Ho Chi Minh City

  • PSA International acquires stake in Vietnam logistics provider SOTRANS Group

  • Mapletree Industrial Trust announces data centre acquisition in Osaka

  • OCBC Bank partners ADDX to distribute first tokenised equity-linked structured note

  • Manulife US REIT announces proposed divestment of Phipps to sponsor




📌 🌀SG Earning Announcement🌀

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


  • SATS reports loss of $26.5 mil for FY2022/2023 due to one-off merger and acquisition expenses; declared no dividends

  • Valuetronics reports 8.3% y-o-y increase in FY2023 earnings of HK$123.0 mil

  • Ley Choon FY2023 earnings doubles

  • Cortina reports higher FY2023 earnings, plans special dividend of 14 cents

  • KSH reports FY2023 earnings of $22.3 million

  • Boustead Singapore's 2HFY2023 earnings up 145% y-o-y to $22.7 million

  • Boustead Projects posts earnings of $10.7 million in 2HFY2023, up 97% y-o-y

  • Stamford Land registered earnings of $152.4 mil for FY2023; reports $218.6 mil gain on disposal

  • Metro Holdings posts 6.1% increase in FY2023 earnings to $25.2 mil

  • Used car marketplace Carro reports record ebitda for FY2023 at US$4 mil

  • The Hour Glass reports $1.12 bil FY2023 revenue, earnings up 11% y-o-y

  • Singtel's FY2023 earnings up 14% to $2.23 bil, full year dividend payout of 14.9 cents

  • Japan Foods reports record revenue, earnings up 27.7%



📌

🌀Latest Market View published in ZaoBao/Media🌀

(May 2023)


Interview at ZaoBao on 19 May, click HERE to access if you are their subscriber.




📌

🌀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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