Top Sector Gainers
|Internet Retail||+0.93%||Amazon’s second Prime Day sale will take place Oct. 11-12|
Amazon.com Inc (AMZN US)
|Speciality Stores||+0.63%||Walmart enters the metaverse with Roblox experiences aimed at younger shoppers|
Walmart Inc (WMT US)
|Other Consumer Services||+0.25%||Hong Kong prepares for surge in travel after COVID curbs ease|
Trip.com Group Ltd (TCOM US)
Top Sector Losers
|Real Estate Investment Trusts||-3.15%||Fed officials stare down markets, say inflation is top focus|
American Tower Corp (AMT US)
|Oil & Gas Production||-2.86%||Oil prices slide $2/bbl; settle at 9-month lows on dollar strength|
EOG Resources Inc (EOG US)
|Steel||-2.74%||Commodities Gauge Falls to Lowest in 8 Months on Recession Fears|
BHP Group Ltd (BHP US)
- Las Vegas Sands Corp (LVS US) and Wynn Resorts Ltd (WYNN US) casino operators soared 11.8% and 12.0% respectively after Macao announced its plan to allow Chinese tour groups back in the casinos as soon as November. The Macau government said that it will resume visitation access from Mainland China through tours and e-visa in a few months. Jefferies upgraded the duo to buy from hold following the reopening announcement.
- LAVA Therapeutics NV (LVTX US) shot up 97.5% after the announcement that Seagen will produce LAVA’s tumor-targeting therapy. LAVA will receive $50 million up front with the potential for up to $650 million more as part of the agreement.
- Vertical Aerospace Ltd (EVTL US) the Bristol, England-based builder of electric vertical take-off and landing aircraft test flew its VX4 eVTOL model for the first time over the weekend, while tethered to the ground. Shares slumped 20.0%.
- AMC Entertainment Holdings Inc (AMC US) dropped 14.5% following news that AMC would likely sell up to 425 million units of APE, its preferred shares.
- Yangzijiang Shipbuilding Holdings Ltd (YZJSGD SP), Sembcorp Marine Ltd (SMM SP), Frencken Group Ltd (FRKN SP), Rex International Holding Ltd (REXI SP) and Sembcorp Industries Ltd (SCI SP) fell 10.5%, 5.3%, 5.4%, 4.2% and 3.8% respectively yesterday. Singapore stocks fell on Monday (Sep 26) amid a global selloff due to uncertainties caused by high inflation and rising risk of recession due to interest rate hikes. The Straits Times Index shed 1.4 per cent or 45.13 points to close at 3,181.97, tracking regional declines as markets continue to reel from signs of further economic pain ahead. In the broader market, losers beat gainers 413 to 194, with 1.56 billion securities worth S$1.70 billion traded. Yangzijiang Shipbuilding was at the bottom of the table, falling by 10.5 per cent or S$0.13 to close at S$1.11. Across the region, shares in the Asia-Pacific mostly fell sharply on Monday as negative sentiment continues to weigh in on markets.
Top Sector Gainers
|Travel & Tourism||+3.77%||Hong Kong prepares for surge in travel after COVID curbs ease|
Trip.com Group Ltd (9961 HK)
|Gamble||+3.42%||Macao casino operators soar as China allows tour groups after nearly 3 years|
Galaxy Entertainment Group Ltd (27 HK)
|Restaurants & Fast Food Shops||+1.46%||China blue chips, Hong Kong stocks rise on Macau optimism|
Haidilao International Holding Ltd (6862 HK)
Top Sector Losers
|Real Estate Investment Trust||-4.04%||In China, homebuyers occupy their ‘rotting’, unfinished properties|
Link Real Estate Investment Trust (823 HK)
|Nonferrous Metal||-2.91%||China’s Maike Metals will sell assets and restructure, says chair|
China Hongqiao Group Ltd (1378 HK)
|Precious Metal||-2.72%||Gold Pinned Below $1,650, Copper Extends Losses on Recession Fears|
Zijin Mining Group Co Ltd (2899 HK)
- Yancoal Australia Ltd (3668 HK) fell 14.9% yesterday. Essence International released a research report saying that it gave Yancoal Australia a “buy” rating. Assuming that the coal price in 2022-24 is 368/260/187 Australian dollars per ton, it is expected that the revenue and net profit in 2022 will be 368/260/187 Australian dollars per ton. Profit can reach AUD 11.901/4.956 billion, an increase of 120%/526% year-on-year, which is lower than the valuation of its peers and has considerable room for improvement; the EPS forecast in 2022 is AUD 3.75, and the target price is HKD 49.38, which is 54.5% higher than the current price upside potential.
- Zijin Mining Group Co Ltd (2899 HK) tumbled 8.9% yesterday, along with other gold stocks. Gold and copper prices retreated further on Monday as the dollar notched a new 20-year high amid growing fears of rising interest rates and a potential economic recession. Metal markets plummeted last week following the announcement of the U.S. Federal Reserve hiked interest rates and warned of potential economic pain as it looks to combat runaway inflation. Spot gold was unchanged around $1,643.82 an ounce, while gold futures fell 0.3% to $1,651.30 an ounce by 19:31 ET. Both instruments are trading at their lowest level since early 2020, after logging sharp losses last week.
- CK Asset Holdings Ltd (1113 HK) declined 8.6% yesterday, together with Hong Kong real estate stocks. Morgan Stanley said in a research report that rising interest rates will lead to weaker affordability. According to the bank’s calculations, the ratio of monthly mortgage loan payments to monthly income in the private residential market is 55%, and if HIBOR rises to 3.5%, the relevant ratio could reach 62%. Morgan Stanley said that Hong Kong’s residential property prices have fallen by 8% since the beginning of the year, and it is expected to fall by another 5% in 2023, indicating that the bottom has not yet been reached.
- China Merchants Port Holdings Co Ltd (144 HK) and Prudential PLC (2378 HK) fell 9.6% and 7.3% respectively. Hong Kong stocks slumped deeper into bear-market territory amid growing concerns about a global recession, erasing earlier gains built on hopes for a full reopening of the local economy as mandatory quarantine rules ended.
Trading Dashboard Update: Cut loss on RH Petrogas (RHP SP) at S$0.18. Add ComfortDelGro (CD SP) at S$1.38 and DBS Group (DBS SP) at S$33.