Top Sector Gainers
|Semiconductors||+1.5%||Buy the dip: Applied Materials, Lam Research, Entegris top picks, Citi says|
|Integrated Oil||+0.6%||Brent Breaks $90 On Strong Fundamentals, Russia-Ukraine Crisis|
Top Sector Losers
|Homebuilding||-3.9%||Mortgage refinance demand plunges 13% as interest rates climb toward two-year high|
|Precious Metals||-3.0%||Gold Price Analysis: XAU/USD bears sink their teeth into the market on hawkish Powell pivot|
- Draftkings Inc (DKNG US) shares gained 5.2% yesterday following an upgrade to overweight from equal weight from Morgan Stanley. The firm said in a note that DraftKings was likely to be one of the long-term winners in the competitive online gambling space.
- Broadcom Inc (AVGO US) shares rose 4.3% yesterday after an analyst released a positive investor note about the company’s stock. Broadcom’s stock price may also be benefiting from investors’ increasingly optimistic view of the semiconductor space. Piper Sandler analyst Harsh Kumar reiterated his overweight rating on Broadcom stock today, with a $750 price target, and said that this year’s semiconductor trends in cloud computing and hyperscale computing could be good for the company.
- Microsoft Corp (MSFT US) shares rose 2.9% yesterday after the company gave an upbeat forecast for the current quarter on continued growth in cloud services revenue. It also reported a quarterly profit of US$2.48 per share, beating analysts’ estimates by US$0.17, as well as revenue that beat forecasts. Microsoft said the Activision Blizzard deal would help boost Xbox content and services revenue. Growth has fallen sharply from a high in the fourth quarter of fiscal 2020 when Xbox content and services grew 65%. In the past quarter, revenue rose 10%, while in the year-ago quarter it rose 40%.
- Clorox Co (CLX US) shares lost 5.6% yesterday after Credit Suisse downgraded the stock to underperform, noting that pandemic-era sales growth may reverse. The firm said that if growth slows, Clorox could have difficulty navigating inflation in its supply chain.
- Boeing Company (BA US) shares declined 4.8% yesterday after it reported a much wider-than-expected fourth-quarter loss and missed on revenue. It also said it took a US$3.5bn pretax charge on its 787 Dreamliners after production issues delayed its delivery of the planes for the last 15 months.
- Rex International Holdings Ltd (REXI SP) and RH Petrogas Ltd (RHP SG) shares gained 3.2% and 4.1% respectively yesterday, in tandem with a rebound in oil prices. WTI crude futures held above US$85 per barrel on Wednesday after gaining almost 3% in the previous session, while Brent crude futures held around US$88 per barrel on Wednesday after gaining more than 2% in the previous session. Oil prices rose amid rising tensions over Ukraine and as industry estimates showed a draw in US crude inventories. The API reported that US crude stockpiles fell by 875,000 barrels last week, and if confirmed by official EIA data, would be the eight decline in the past nine weeks.
- Wilmar International (WIL SP) shares gained 2.4% yesterday. Recently, it was announced that Adani Wilmar, the 50:50 joint venture company (JVC) of Wilmar International and India’s Adani Group, has filed a prospectus with India’s Registrar of Companies on Jan 19, in relation to its proposed initial public offering (IPO) on the BSE Limited and the National Stock Exchange of India. Under its listing, Adani Wilmar will issue up to 36 billion rupees ($651.1 million) worth of new shares at 1 rupee apiece. There will be no secondary offering.
- Yangzijiang Shipbuilding Holdings Ltd (YZJSGD SP) shares gained 2.4% yesterday after it was announced that Yangzijiang, Keppel Corp and SembMarine are UOB Kay Hian’s top picks in the ‘overweight’ O&M sector. UOB Kay Hian analyst Adrian Loh has maintained “overweight” on the offshore and marine (O&M) sector as he sees the sector moving “onwards and upwards”. “The higher offshore activity expected in 2022 and 2023 underpins our positive view on the sector, especially given that meaningful rig supply was removed globally,” he adds. UOB Kay Hian has given Yangzijiang, Keppel Corporation, SembMarine and Sembcorp Industries “buy” calls with target prices of $2, $6.74, 11 cents and $2.59 respectively.
- Oversea-Chinese Banking Corp (OCBC SP) shares gained 1.6% yesterday. It was recently announced that RHB trimmed OCBC’s target price after scam attacks but expects ‘steady’ 4Q21 results. “We expect OCBC Bank to post a net profit of S$1.188bn in 4QFY2021, with the estimated 3% QoQ dip in earnings coming mainly from seasonally lower wealth management fees and higher operating expenses,” says RHB Group Research. “That said, underlying operations remain healthy and asset quality stable. Key share price catalyst would come from the imminent interest rate upcycle and its undemanding valuation.”
Top Sector Gainers
|Alcoholic Drinks & Tobacco||+3.00%||China’s consumer market on track for rebound with wide-ranging support: official|
|Property Investment||+2.49%||China property sector could see “significant” policy easing -BNP Paribas|
|Consumer Electronics||+2.33%||Biden Team Says Global Chip Shortage to Stretch Through 2022|
Top Sector Losers
|Biotechnology||-2.53%||Biotech stocks are a dumpster fire. An analyst explains what’s going on|
|Household Appliances||-1.39%||IMF cuts 2022 global growth forecast as U.S., China recovery wanes|
|Footwears||-1.04%||China rolls out guidelines to promote high-quality implementation of RCEP|
- Hengten Networks Group Ltd (136 HK) shares gained 8.7% yesterday. The company announced yesterday that Tencent’s wholly-owned subsidiary, Water Lily and Liu Xueheng, an independent investor, intend to subscribe 64mn shares and 56mn shares respectively, at HK$2.5 per share. The total proceeds will be approximately HK$300mn and are intended to be used for the Group’s general working capital, business development and expansion.
- Xinyi Solar Holdings Ltd (968 HK) shares gained 8% yesterday. The Party and Government Office of the Guangxi-ASEAN Economic and Technological Development Zone issued a document yesterday stating that photovoltaic development should be built on all roofs should they be suitable. Examples include factory buildings, schools, agricultural land and contiguous residential houses within the jurisdiction of the development zone.
- China Longyuan Power Group Corp Ltd (916 HK), Kunlun Energy Co Ltd (135 HK). Green electricity stocks rose collectively yesterday, with shares gaining 7.1% and 5.9% respectively as securities companies are optimistic about power stocks. Guohai Securities released a research report maintaining a “recommended” rating on the industry as the “Implementation Plan for Promoting Green Consumption” which was recently released highlighted the environmental value of green electricity. In addition, Shenwan Hongyuan released a research report maintaining a “buy” rating on Longyuan Power. The bank stated that the company has high-quality assets, significant technological advantages and the growth of installed capacity has accelerated under the background of carbon neutrality.
- Kuaishou Technology (1024 HK) shares gained 4% yesterday. The company reported RMB 650bn in gross merchandise value (GMV) from e-commerce transactions on its TikTok-like app, sources said, as the company grapples with widening losses. The 2021 figure reached Kuaishou’s previously stated target, and marked a dramatic increase from 2020 when its e-commerce GMV came in at RMB 381bn, and from 2019, when the figure was RMB 59.6bn. The company expects the figure to hit the RMB 900bn mark this year.
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