Top Sector Gainers
|U.S. housing starts, building permits increase in November
|2022 Outlook for the Economy, Commercial Real Estate and REITs
Top Sector Losers
|U.S. airlines scrap nearly 1,000 Christmas Day flights due to Omicron
|Energy Equipment & Services
|Where gas prices are headed in 2022, according to leading forecast models
- Nvidia (NVDA US) shares dropped as much as 2% yesterday, after Samsung announced that “due to the ongoing COVID-19 situation, we have decided to temporarily adjust operations at our manufacturing facilities in Xian, China.” Samsung is a contract manufacturer of semiconductor wafers to Nvidia, indicating that a production slowdown at Samsung will cause a production slowdown for Nvidia as well. However, shares of other chip makers Western Digital (WDC US) and Micron Technology (MU US) jumped in reaction to the news, gaining 5.2% and 3.5% respectively.
- Didi Global (DIDI US) shares tumbled 8.2% yesterday after it reported a $4.7 billion loss, with a 1.7% decline in third quarter revenue as a result of regulatory crackdowns. Additionally, Reuters reported that Didi is planning its Hong Kong ‘listing by introduction’, a mechanism that will allow it to list shares in Hong Kong without raising capital or issuing new stock as it seeks to delist from New York, two people with knowledge of the matter said.
- Biogen (BIIB US) shares jumped 9.5% yesterday after a report published by The Korea Economic Daily, citing an unspecified number of “investment banking sources,” said that Samsung Group is in discussions to purchase Biogen. The sources said that Samsung was not the courting party, but it was Biogen that made the approach to the Korean conglomerate. The potential price is over 50 trillion Korean won. Samsung has not officially responded to the article.
- EC World REIT (ECWREIT SP) shares slumped more than 5% on Wednesday after a consortium of buyers backed out of a deal to purchase all of the REIT’s properties. EC World REIT had initially announced the deal on 17 May 2021. The manager of the REIT states that the fall out from the deal will not have any material adverse impact on the REIT’s consolidated net asset value or distributions per unit for FY2021.
- Koufu Group (KOUFU SP) The major shareholders have proposed to privatise the company at S$0.77 per share in cash through a voluntary conditional offer which values the company at S$426mn. The offer price represents a 15.8% premium to the last traded price of S$0.665.
- Malaysian glove makers Top Glove (TOPG SP) and Riverstone (RSTON SP) continued steady gains of between 2-3% in Wednesday’s trading session. While the latest Omicron variant may have contributed to a surge in glovemaker stocks, a key source of buying support has been from the major shareholders. Both of the glovemakers’ top shareholders have begun buying shares from around mid-December onwards.
- Sembcorp Marine (SMM SP) shares climbed 2.5% yesterday after it was announced that its wholly-owned subsidiary PPL Shipyard has reached an in-principle agreement with Borr Drilling to defer PPLS’ receivables of US$800 milion from the latter from 2023 to 2025. Borr Drilling will also pay PPLS an extension fee, and make earlier payments of part of the capitalised interest previously due in 1Q2023. Sembcorp Marine also added that the entry into this in-principle agreement and subsequent definitive agreement are not expected to have a material impact on the net tangible assets or earnings per share of the company in FY2021.
- Halcyon Agriculture (HACL SP) shares jumped 4.6% yesterday after the company announced that it is selling 54.4 hectares of freehold land for 11.1 billion CFA francs or US$19 million in cash. Halcyon Agri added that it anticipates the deal to have a positive impact on earnings per share and net tangible assets per share for the current financial year.
Top Sector Gainers
|CHINA MOBILE On A-shr IPO: Retail Investors Abandon RMB743M of Subscription
|Road and Railway
|China launches new high-speed railway line in Shandong province
|Apple Shares Slip as $3 Trillion Value Proves Elusive Again
Top Sector Losers
|Travel & Tourism
|China expands lockdowns as COVID-19 cases climb
|Movies & Entertainment
|Film event charts new direction for Chinese online movies
|Food Additives & Flavouring
|Macquarie Trims YIHAI INTL (01579.HK) TP to $30, Rated Underperform
- HengTen Networks Group Limited (136 HK) There was no company specific news. The jump in shares price could be due to the news that three board directors purchased 58.3mn shares for the first time in mid-December.
- Weimob Inc (2013 HK) Shares closed at a 52-week low. There was no company specific news. SaaS sector plunged. China-Hong Kong connect closed yesterday.
- Simcere Pharmaceutical Group Ltd (2096 HK) Previously, the company announced that on December 27, 2021, SIM0270 (SCR-6852 capsule), an oral brainpenetration selective estrogen receptor down-regulator (SERD) inhibitor self-developed by the company, has obtained the Clinical Trial Approval issued by the National Medical Products Administration, PRC, and is proposed for a clinical trial for the treatment of ER-positive, HER-2 negative breast cancer. The correction of price could be due to some profit-taking movements.
- Jinxin Fertility Group Ltd (1951 HK) Shares closed at a 52-week low. Three-child themed stocks plunged. There was no company specific news.
- Yihai International Holding Ltd (1579 HK) Shares closed at a 52-week low. There was no company-specifc news. Macquarie trimmed the TP to HK$30 from HK$33 and maintained an UNDERWEIGHT rating. The bank believes that its connected transaction and third party business operation are expected to be impeded by the projected below-estimate consumption demand.
Trading Dashboard Update: Add ISDN (ISDN SP) at S$0.72. Remove Geo Energy (GERL SP) at S$0.33.
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