top of page
Writer's pictureAda Tam Ying Ying

Market Update 26th - 1st Aug 2022: Fed raised rates by 0.75 points... So what's next?

Updated: Aug 2, 2022

Investment tip takeaway 🦉 this week: "People see what they're told to see..."

Singapore market continue stayed strong.. let's review the released data that are important and got significant changes last week:


Singapore

SG's CPI (YoY), Previous: 5.6%... Actual: 6.7% at record high

-> Meaning you need to pay more for things that you want to buy

SG's Industrial Production (YoY) Jun, Previous: 10.4%... Actual: 2.2%

SG's Industrial Production (MoM) Jun, Previous: 9.2%... Actual: -8.5%

-> Output produced by manufacturers dropped... Click HERE for Detail


China

CNY's Chinese Industrial Profit (YoY) Jun, Previous: -6.50%... Actual: 0.80%


United Stated

USD's API Weekly Crude Oil Stock, Previous: 1.860M... Actual: -4.037M

USD's Pending Home Sales (MoM) Jun, Previous: 0.4%... Actual: -8.6%

USD's Crude Oil Inventories, Previous: -0.446M... Actual: -4.523M

USD's Fed Interest Rate Decision, Previous: 1.75%... Actual: 2.50%

-> New Rate change at Range between 2.25% - 2.5%

USD's GDP (QoQ) Q2, Previous: -1.6%... Actual: -0.9%

-> US economy shrinks for a second quarter, fueling recession fears


To Investors :

Last week, the 3 US major indexes surged as Fed Chairman Jerome Powell signalled during the Fed meeting that central bank could slow the pace of its hikes in the subsequent meetings, suggested that the Fed is aware of the negative impact of its rate hikes on the economy. And his remarks had indeed given hope to investors once again about the outflow of funds from the stock market could probably slow down before the next Fed meeting in September. (source: CNBC)


Stepping into August, the political atmosphere may get tense again, not only in the northern part of the globe, but the American politician, Nancy Pelosi, had kicked off her Asian Tour yesterday with Singapore as her first stop of visit. Her second stop at Taiwan, had already stirred up the tensions once again between China and Taiwan. Hence, fund managers may chose to stay away if political instability is in sight. But I believe the buying spree in Singapore Market is far from over (please refer to last week on my explanation why Singapore remains relatively strong), investors can consider the following sectors for long positions in the month of August and September as of now market can take a holiday from the Fed Reserve before September:

  • Property sector

  • REIT

  • Gold

And I had tabulated the REIT Results (include DPU) and other corporate earning this week for your reference.


To take note: Market in month of August, is kind of sensitive to political news, I expect the clashes between countries, may increase once again but these will give investors opportunities to buy at low prices during pull back again. Therefore, investors need to be careful as the market volatilities is expected to increase.


🌀 Focal Point 1: Energy Price

From now, many northern countries are busy stocking up on staples for winter once stepping into August. And the energy prices will likely to stay high as demands are expected go up. Therefore, energy related counters can still remain as part of your portfolios and investors can consider to engage sell-half-and-hold-half strategies if the energy prices run-up too fast.


🌀 Focal Point 2: US Q2 Earning Announcements continue

US earnings last week summarised as below... (Captured from CNBC) Megacap misses: Alphabet, Microsoft, Meta

Earning Disasters: Intel, Roku, StanleyBlack&Decker

Retail Warnings: Walmart, Best Buy

Weak Guidance: Qualcomm, Whirlpool, Sherwin-Williams


So far, the global tech stocks had been facing selling pressure in the last quarter. Though there was a rally before the earning announcement last week, but investors seem to chose to sell on result and you can click Here for US Events Calendar for Jul 31, 2022 - Aug 06, 2022


For Singapore


 

"Knowledge is power."📌

 

Other Focus (Results and Highlights of Corporate Actions):

​

📣 Earnings Calendar - 1 Aug 2022 to 5 Aug 2022

19 SGX-listed companies will be announcing their financial results and business updates this week, including 6 STI constituents, Ascendas REIT, OCBC, Wilmar International, DBS, Venture Corp, Sembcorp Industries and Frasers Logistics & Commercial Trust.


🔖 Bookmark our Economic Calendar bit.ly/3OeRbhY  for weekly updates of key macroeconomic events, earnings releases and corporate actions in the global and Singapore markets.


REIT Results:

​AIMS APAC REIT

1QFY2022

Net property income (NPI) grew 34.3% y-o-y to $31.0 million

DPU of 2.28 cents

Ascott Residence Trust

​1HFY2022

Total distribution increased by 20% y-o-y to $76.7 million

DPU of 2.33 cents

CDLHT

​1HFY2022

​Net property income improved by 37.8% y-o-y to $51 million

DPU of 2.04 cents

​CICT

1HFY2022

Net property income (NPI) increased by 6.2% y-o-y to $501.6 million

DPU of 5.18 cents

CLCT

1HFY2022

CLCT retain $3.6 mil for 'financial flexibility'

DPU falls by 3.1% to 4.10 cents

Digital Core REIT

1HFY2022

Net property income for first half 2022 was US$35.4 million, announce acquisition plans

DPU of US$ 2.37 cents

​ESR-LOGOS

2QFY2022

Net property income (NPI) for the half-year period increased by 18.2% y-o-y to $102.8 million

DPU of 0.737 cents

Far East Hospitality Trust

1HFY2022

Net property income (NPI) increased by 3.5% y-o-y to $37.5 million

DPS of 1.54 cents

​Frasers Centrepoint Trust

3QFY2022

Reports tenant sales at 10% higher than pre-pandemic levels

​

Keppel Infrastructure Trust

1HFY2022

Distributable income was $87.6 million, down 13% y-o-y.

DPU of 1.91 cents

Keppel REIT

1HFY2022

Net property income (NPI) increased by 6.0% y-o-y to $89.5 million

DPU of 2.97 cents

​Mapletree Commercial Trust

​1QFY2023

​Report NPI (Net Property Income) earnings of $106.7 million

10.1% Higher

Suntec REIT

1HFY2022

Net property income (NPI) for the 1HFY2022 increased by 35.8% y-o-y to $152.9 million

DPU of 4.810 cents

​Starhill Global REIT

2HFY2022

Net property income (NPI) increased by 7.6% y-o-y to $75.1 million due to the cessation of rental rebates in Malaysia

DPU of 2.02 cents


Other Results:

Baker Technology

1HFY2022

Reports earnings of $9.0 million

Increased by double

DFI Retail Group

1HFY2022

Reports loss of US$52 million

Cuts dividend

First Sponsor Group

1HFY2022

Reports earnings of $71.3 million

3.5% Higher

GKE Corp

FY2022

Profit reported at $4.7 million

Profit plunges 59.2% y-o-y

HC Surgical Specialists

FY2022

Profit reported at $6.4 million

Profit dropped 20.3%

Hongkong Land

1HFY2022

Reverses to profitability with US$292 mil earnings

Interim dividend of US$0.06 per share

Hutchison Port Holdings Trust

1HFY2022

Reported earnings of HK$716.3 million ($126.5 million)

Pay DPU of 6.50 HK cents

Japfa

1HFY2022

Reported revenue of US$2.5 billion, up 10.4% y-o-y on higher selling prices

​

Jardine Cycle & Carriage

1HFY2022

Reports record underlying earnings of US$522 million4

interim dividend of 28 US cents per share

Jardine Matheson

1HFY2022

Back in the black with earnings of US$423 million

Interim dividend of 55 US cents per share

Keppel Corporation

1HFY2022

Reports 26.4% higher in earnings of $434.1 million

Interim dividend of 15.0 cents per share

Lian Beng Group

FY2022

Reports 66.7% earnings jump for FY2022

Final dividend of 2 cents per share

Mandarin Oriental International

1HFY2022

Reduces 1HFY2022 losses to US$18.3 million


UOB

2QFY2022

net profit of $1.1 billion

11% Higher

Samudera Shipping

1HFY2022

Reports earnings of US$171.7 million

up 367.7% y-o-y

Sheng Siong Group

1HFY2022

2.2% higher earnings of $67.4 million

Interim dividend of 3.15 cents per share

SIA

1QFY2023

Reverses into the black with $370 mil net profit for 1QFY2023

​

Sing Investments & Finance

1HFY2022

Reports 7.3% higher earnings of $19.7 million

​

Other news:

  • ComfortDelGro sells part of stake in Scottish Citylink Coaches as part of $2.8 mil

  • UOB sues distressed China builder Shimao over loan terms

  • Meta falls as sales miss estimates in first-ever quarterly drop

  • Samsung's profit misses as slow down claims latest tech casualty


Coming Market Focus (Extract):

Sunday, July 31, 2022

​

CNY

Caixin Manufacturing PMI Jul

Monday, August 1, 2022

​

USD

ISM Manufacturing PMI Jul

HKD

GDP (QoQ) (YoY) Q2

Tuesday, August 2, 2022

​

AUD

RBA Interest Rate Decision

RBA Rate Statement

USD

API Weekly Crude Oil Stock

USD

FOMC Member Bullard Speaks

CNY

Caixin Services PMI (Jul)

Wednesday, August 3, 2022

​

USD

OPEC Meeting

ISM Non-Manufacturing PMI Jul

Crude Oil Inventories

Thursday, August 4, 2022

​

USD

FOMC Member Mester Speaks

Initial Jobless Claims

Imports & Exports

Friday, August 5, 2022

​

SGD

Retail Sales MoM YoY Jun

USD

Unemployment Rate Jul

Saturday, August 6, 2022

​

CNY

Trade Balance Jul

Imports & Exports

p.s:

Next FOMC Meetings 2022; September. 20-21

 

Focus Point : Blockchain, NFTs and the Metaverse


The headline last week:


Though I think the current bitcoin level is good to long starting in the 2 week of August till end of September. But with so many bitcoin exchanges collapsed recently, those who interested to buy into bitcoin can consider Bitcoin Future or Bitcoin CFD... Taking bitcoin as a form of commodity to trade is always safer than keep it as a form of asset to hold in long run.


 

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.)




 

Important Disclaimer

A. Reminders: 1. Phillip Securities Pte Ltd ("PSPL") will generally provide you "execution only" services - see Guide and Cautionary Notes for Trading Accounts on www.poems.com.sg. You are therefore personally responsible to make your own decisions on the suitability of every securities transaction you do through PSPL. One exception is if you specifically apply and pay for advice from PSPL. The other is referred to in reminder 2. 2. Execution-Related Advice ("ERA") on listed Excluded Investment Products may be given to you, but only subject to strict conditions. These include (a) you accepting personal responsibility to ensure any such advice is suitable before you act on it, and (b) you ensuring that you both receive and understand the rationale for every ERA given to you. 3. Materials (including market and analyst reports) are provided to you as information on an execution only basis for you to make your own suitability decisions. Materials which are not ERA are provided strictly as you asked. These reminders apply to the contents of this e-mail as well as any and all accompanying materials sent under its cover. B. General Disclaimer: The information/materials provided (whether as attachments to this e-mail or in its body), where they are not ERA on listed Excluded Investment Products in compliance with the second reminder above, are provided for general information/circulation only and not intended and therefore should not be taken as any offer or solicitation to do any investment or trade. No assessment has been made by PSPL as to the suitability for you of any materials in or under this e-mail. As always, the decision to trade and/or invest remains solely with you. Information/materials in or under this e-mail are provided as is without warranty of any kind, either express or implied. Such information/materials provided have been procured from sources which are believed to be reliable and accurate (but whose reliability and accuracy cannot be and are not warranted); and may have been acted on by PSPL or members of the PhillipCapital group of entities before being made available to you. All investments are subject to investment risks. Ideally you should and you may wish to seek advice from an independent financial adviser before making a commitment to purchase or invest in the investment product(s) mentioned either in this e-mail or its attachment(s). If you choose not to do so, you are then choosing to make your own decision on whether any of the said investment product(s) are suitable for you. Neither PSPL nor any fellow member of the PhillipCapital group of entities shall, in any event, be liable to you for any direct/indirect or any other damages of any kind arising from or in connection with your reliance on any information in and/or materials attached to this email. C. General Confidentiality Note: This e-mail and its attachment(s) are intended only for the use of the recipient(s) named above. If you have received this message in error, please notify the sender immediately and delete all copies of it.


Confidentiality Note

This e-mail and its attachment(s) are intended only for the use of the recipient(s) named above. If you have received this message in error, please notify the sender immediately and delete all copies of it.


27 views0 comments

Comentários


bottom of page