|Precious Metals||+7.9%||Gold Price Analysis: XAU/USD surges to multi-month highs above $1835 amid technical buying/short-squeeze|
|Other Metals/Minerals||+2.1%||Iron ore price recovers despite economic weakness in China|
|Aluminum||+0.8%||LME aluminium, nickel, zinc prices expected to stay strong with tight supply an ongoing issue: Sucden|
Top Sector Losers
|Homebuilding||-3.5%||U.S. mortgage interest rates climb for 4th straight week|
|Motor Vehicles||-3.2%||Why Tesla Stock Fell on Wednesday|
|Semiconductors||-2.5%||Rotation to Value Here to Stay as Fed Desperate to Vanquish Inflation Boogeyman|
- SoFi Technologies Inc (SOFI US) Shares of the mobile financial services company gained 13.7% yesterday after the company won long-sought regulatory approval to become a bank holding company. SoFi will acquire California community lender Golden Pacific Bancorp, a deal announced last year, and operate its bank subsidiary as SoFi bank.
- Electronic Arts Inc (EA US) and Take-Two Interactive Software (TTWO US) extended their gains yesterday, rising 6.1% and 2.2% respectively, likely due to a spillover effect from the announcement of Activision’s deal. Microsoft recently announced that it plans to buy Activision Blizzard, a powerhouse but troubled video game company for nearly US$70bn, its biggest deal ever and one that places a major bet that people will be spending more and more time in the digital world. Microsoft is valued at more than US$2.3tr, second only to Apple. The takeover of Activision would make Microsoft the world’s third-largest gaming company by revenue, behind Tencent and Sony, the company said.
- US Bancorp (USB US) shares plunged 7.8% after a weaker-than-expected fourth-quarter earnings report. The company posted profit below the consensus expectation from analysts surveyed by Refinitiv. Net interest income also came in lower than the StreetAccount estimate.
- State Street Corp (STT US) shares lost 7.1% yesterday despite better-than-expected results for the fourth quarter on the top and bottom lines. The company’s revenue from servicing fees came in below analysts’ expectations, according to FactSet’s StreetAccount. Additionally, State Street announced that the CEO of its Global Advisors business will retire this year.
- First Resources Ltd (FR SP) and Wilmar International Ltd (WIL SP) shares rose 4.2% and 1.2% respectively yesterday, in tandem with rising palm oil futures. Palm oil benchmark contracts in Malaysia rose as much as 3.2% in the early trading on Wednesday in reaction to the Indonesian policy and amid higher crude oil futures. Indonesia’s biggest palm oil association GAPKI on Wednesday shrugged off a new government policy requiring exporters of the vegetable oil to gain approval for their shipments and declare their domestic sales. To secure the trade ministry export permits, palm oil companies must declare that they are supplying these palm oil products to domestic buyers, attaching sales contract proof as well as their six-month plans for exports and domestic distribution. Exporters are currently only required to do customs declarations for shipments. The permit requirement takes effect from Jan. 24 and will be imposed for six months.
- Sembcorp Industries Ltd (SCI SP) shares gained 3.3% yesterday. Analysts from CGS-CIMB Research and Citi Research are keeping “add” and “buy” on Sembcorp Industries after the company announced, on Jan 4, that it had inked a 12-year long-term power purchase agreement (PPA) with Andhra Pradesh’s state DISCOM for its Plant 2. Based on data released by Sembcorp in 1H21, SEIL 1 has contracted capacities of 570MW to Telangana DISCOMS and 500MW to Telangana and Andhra Pradesh DISCOMS. SEIL 2 has contracted capacities of 250MW to the Bangladesh Power Development Board. With the contract, CGS-CIMB analyst Lim Siew Khee expects SEIL 2 to be profitable in FY2023 and the development is seen as “positive” for Sembcorp’s share price. With the contract, Lim expects SEIL 2 to be profitable in FY2023.
- Sheng Shiong Group Ltd (SSG SP) and Dairy Farm International Holdings Ltd (DFI SG) shares rose 1.4% yesterday, even though there was no company specific news. Investors are buying ahead in anticipation of robust grocery sales during the Chinese New Year festive season. It was announced earlier this week that Sheng Siong’s stores will stay open round the clock until Chinese New Year Eve, when they will close at 4pm. On the first and second day of Chinese New Year, 26 Sheng Siong stores will be open from 8am to 6pm. As for Cold Storage, Market Place and Jasons as well as Jasons Deli, all 53 outlets will be open on Chinese New Year Eve.
Top Sector Gainers
|Property Management & Agency||+2.57%||Exclusive: China drafts rules to ease property developers’ cash crunch|
|Electricity Supply||+1.61%||China’s 2022 electricity consumption growth to slow as economy cools|
|Construction Materials||+1.49%||China GDP: headwinds from coronavirus, property market slump see provinces lower economic growth targets for 2022|
Top Sector Losers
|Biotechnology||-2.03%||China reports fewest daily local COVID-19 cases in two weeks|
|Consumer Electronics||-2.01%||Chip shortage and Covid weigh on China’s smartphone market even as it bounced back from pandemic lows|
|Precious Metal||-1.72%||Traders Weigh Bigger Fed Rate Hike in March as U.S. Yields Soar|
- CIFI Holdings (Group) Co Ltd (884 HK) shares jumped 12.3% yesterday, after the company issued a voluntary announcement stating that it has remitted the remaining US$240mn of USD bonds due on January 23, 2022. On the first trading day of this year, CIFI issued an announcement saying that the company completed an additional issuance of US$150mn in green bonds, becoming the first private enterprise to complete the issuance of green bonds this year. The stability of CIFI has also been recognized by international investment institutions. Recently, Morgan Stanley published a research report titled “Finding a Safe Haven in the Uncertainty of Policy”, listing CIFI Holdings Group as its first choice. In its 2022 real estate industry outlook, Credit Suisse believes that CIFI’s solid fundamentals will benefit from this round of policy adjustments.
- Shimao Group Holdings Ltd (813 HK), Sunac Services Holdings Ltd (1516 HK). Property sector shares gained collectively yesterday. China is drafting nationwide rules to make it easier for property developers to access pre-sale funds held in escrow accounts, in its latest move to ease a severe cash crunch in the embattled sector, four people with knowledge of the matter said. They also stated that the new rules would help developers meet debt obligations, pay suppliers, and finance operations by letting them use the funds in escrow that are currently controlled by the municipal governments with no central oversight. On Tuesday, a senior official at the People’s Bank of China (PBOC) said the central bank would maintain “continuity, consistency and stability” of property financial policies.
- China Lesso Group Holdings Ltd (2128 HK) shares gained 8% yesterday. In line with China’s 14th Five-Year Plan period, pipeline investment pertaining to urban pipeline renewal, sewage treatment and key projects are expected to accelerate. In addition, Tianfeng Securities previously released a research report, covering China Lesso for the first time with a BUY rating and a target price of HK$21.08. It said that the company’s leading position in the plastic pipe industry is stable and its industry market share has grown continuously, which supports the company’s growth prospects.
- Xinyi Glass Holdings Ltd (868 HK) shares gained 5.3% yesterday. Glass futures have continued to strengthen recently, and the main contract has exceeded RMB 2,000, with a cumulative increase of 25% in 11 trading days. Additionally, the spot price of glass was stable and strong yesterday, with North China float glass reported at RMB 1991/ton, an increase of RMB 5/ton, while East China float glass was reported at RMB 2124/ton, an increase of RMB 4/ton. Ton. In the long run, as the real estate market starts picking up, this would boost long-term market confidence.
Trading Dashboard Update: Add Jiutian Chemical (JIUC SP) at S$0.082.
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