Top Sector Gainers
|Oil & Gas Production||+3.9%||Oil prices rise to highest level in a month as Omicron concern eases|
|Semiconductors||+2.7%||These are Wall Street’s 25 favorite semiconductor stocks for 2022|
Top Sector Losers
|Biotech||-1.7%||Is the Omicron Variant Less Dangerous Than Delta? What We Know Right Now|
|Aluminum||-0.8%||China’s 2021 primary aluminum output seen below early estimates: Antaike|
- Coinbase (COIN US) shares benefited from yet another rebound in prices for popular cryptocurrencies, with bitcoin crossing the $51,000 mark. The stock jumped 4.5%.
- Cruise stocks Norwegian Cruise Line (NCLH US), Carnival Corporation (CCL US) and Royal Caribbean (RCL US) fell following a story by the Washington Post over the weekend that described cruise ships as a “petri dish” for COVID-19. The article wrote that “although vessels that have resumed cruising have beefed up coronavirus precautions, the rapid spread of the Omicron Variant” of COVID-19 is defeating their best efforts. “Dozens of ships are now under investigation or being monitored by the CDC” because of coronavirus outbreaks on board.
- Shares of Meta Platforms (FB US) jumped 3.3% yesterday on reports of its Oculus VR headset being a hit during the holiday season. A report by CNBC said that the Oculus virtual reality app was the most popular app in Apple’s App Store on Christmas Day, signalling that Meta’s VR headset was one of the most popular technology gifts over the holidays. This is the first time the Oculus app has topped the App Store on Christmas.
- Moderna (MRNA US) shares fell for a fifth straight trading session, closing 1.2% lower yesterday. It was reported that the company is contesting a shareholder proposal for sharing its Covid vaccine technology with poor countries and lowering prices there.
- Hatten Land (HATT SP) shares surged more than 20% on Monday after the Malaysian property developer announced a partnership with Huawei International. Both parties will jointly explore and develop business opportunities in renewable energy, data centre, cloud computing, enterprise intelligence and fintech infrastructure.
- Aztech Global (AZTECH SP) shares rose almost 7% to outperform local technology-related shares. The company announced that it had bought back 246K shares on 24 Dec, resuming the share buyback momentum that had stopped on 2 Dec. Since 13 Oct, it has bought back almost 1.9mn shares in the open market. Technically, its shares are also due for a technical rebound given RSI indicates oversold conditions. Shares of Aztech lost almost 50% from the S$1.56 peak that it traded at in April 2021. Consensus remains optimistic on the company despite the weak performance of its shares, with all four sell-side analysts assigning BUYS and an average 12m TP of S$1.60 (+86% upside potential from the last close price).
- Malaysian glovemakers Top Glove (TOPG SP), Riverstone (RSTON SP) and UG Healthcare (UGHC SP) gained between 2% and 5% on Monday after coronavirus cases surged across the globe and China reported the highest number of local cases since January.
- Ascott Residence Trust (ART SP) shares rose 1% on Monday on news that will double its student accommodation assets with four acquisitions in the US valued at US$213mn. The yield-accretive acquisition is set to increase ART’s pro forma FY2022 DPS by about 3%. ART is currently forecasted to give a 4.0% div yield for FY2021, improving to 5.4% in FY2022 and 6.2% in FY2023. Consensus has 7 BUYS, 1 HOLD and 2 SELLS, and a 12m average TP of S$1.15 (+14% upside from last close price).
Top Sector Gainers
|Leisure & Recreation||+3.29%||HK retailers forge new path without China tourists|
|Other Financials||+2.21%||China’s state-owned bad loans manager Cinda to buy 20 per cent of Ant Group’s consumer credit vehicle|
|Electricity Supply||+1.15%||China’s largest single capacity offshore wind farm connected to power grid|
Top Sector Losers
|Machinery & Equipment||-2.58%||China stocks end lower on COVID-19 outbreak; new energy, machinery firms slump|
|Software||-1.18%||Alibaba Employee First Spotted Log4j Software Flaw but Now the Company Is in Hot Water With Beijing|
|Telecomm. & Networking Equipment||-0.94%||China’s telecom sector revenue up 8.1% YoY|
The Hong Kong market was closed yesterday in observation of the Christmas holidays. Trading resumes today, 28 December 2021.
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