Market Update: Fed's Powell gives Semi-Annual Report to Congress this Wed/Thur

( My Recommendation 🉐 )

STI Market forecast for 2nd half of June :

From this week onwards, investors need to be more careful with buying into long positions as APAC markets may need to consolidate after rally for the past few weeks...

STI may break support of 3200 again. Investors need to be careful. However, energy counters may pull back because of SIA, investors can consider to buy in slowly whenever there's a pull back in prices in energy counter. For SIA, it can break $7, and buy if there's 6.8, else any prices below 7 is still consider ok.

My interviews with Channel 8 Focus on oil price are as followed:

焦点 | 经济师：石油不升反跌 航空业将受益

Here is the link for the programme: https://www.8world.com/stories/focus/fuel-price-fluctuations-impact-for-aviation-industry-2161051

焦点 | 沙特又减产 原油价格不一定看涨？

https://www.8world.com/stories/focus/saudi-arabia-oil-production-cuts-2161066

Market Update for past 2 weeks

Investor's Must-Know

Past Economic Events to note last week:

Singapore

Hightlights

• May NODX down 14.7% mainly due to Hong Kong, Malaysia and Taiwan

• Tharman Shanmugaratnam to run for president in Singapore’s next election

• Citi reinstates coverage on DBS with 'sell' call and target price of $26.60

• Hong Kong ends reign as most expensive city for expats, Singapore gains 8 places

Economic Data (last weeks)

Retail Sales yoy: 4.5% to 3.6% ; mom: 2.2% to 0.3%

Foreign Reserve 312.0B to 325.7B

Unemployment Rate 2.0% to 1.8%

Non-Oil Exports yoy: -9.8% to -14.70% ; mom: 2.6% to -14.60%

Trade Balance 4.762B to 5.491B

United States

US presidential election will be held in Nov 2024

US Earning this week : https://finance.yahoo.com/calendar/earnings/

Hightlights

• US Fed pauses rate hikes but signals more tightening to come

• Fed holds off on rate hike, but says two more are coming later this year [CNBC]

• FED keeps rate at 5.25% in June

Economic Data (last week)

Core CPI yoy: 5.5% to 5.3% mom: 0.4% to 0.4%

CPI yoy: 4.9% to 4.0% mom: 0.4% to 0.1%

Core PPI yoy: 3.1% to 2.8% mom: 0.2% to 0.2%

PPI yoy: 2.3% to 1.1% mom: 0.2% to -0.3%

Fed Interest Rate 5.25% to 5.25%

Core Retail Sale mom: 0.4% to 0.1%

Initial Jobless Claims 262K to 262K

Other Countries

China, Hong Kong

# China's new premier visits Germany in first foreign trip [DW]

# China cuts mortgage rate to prop up economy; Banks trim forecasts

One Year LPR : From 3.65% to 3.55%

One Year MLF : From 2.75% to 2.65%

7-Day Repo Rate : From 2% to 1.9%

# Blinken visited China to repair ties, 19-20 June : US and China pledge to stabilise tense relationship after talks [BBC]

# Bill Gate met China President Xi JinPing, 16 June : Bill Gates unveils US$50 million fund for joint health research with China [SCP]

# 15 June : Weak China Data, China cut 1 year medium lending rate by 10BP

# Hong Kong remain US dollar peg after Fed interest rate decision of keeping rate unchange on 14 June

# China's data was moderately weak last week:

- New Loans May : from 718.8B to 1,360.0B (Miss estimate of 1600B)

- Outstanding Loan Growth : from 11.8% to 11.4%

Japan

# Warren Buffett raises stake in Japanese trading houses [Yahoo]

# 16 June : BOJ keeps ultralow rates to assess wage growth, price momentum

The BOJ decided to maintain its cap on the 10-year Japanese government bond yield at 0.5% and kept short-term interest rates at minus 0.1%

# TSMC is constructing an $8.6 billion wafer plant in Kikuyo, Kumamoto Prefecture, with mass production scheduled to start in 2024. Sony Group Corp. and Denso Corp., a major Japanese auto parts maker, are also investing in the factory while the Japanese government is providing financial aid.

Europe and Others

FTSE 100, DAX, CAC 40 and EURO STOXX 50

# Paris air show : Airbus sign historic order with Indigo for 500 A320 Jets [Reuters] # Lagarde: July ECB Rate hike "Likely"

The ECB is "not done" with its battle to bring down inflation, and will "very likely" raise interest rates further when its governors next meet in July, president Christine Lagarde said Thursday.

# Both central banks of Australia and Canada contine to raise interest rate to another 25 bps... And US' Yellen says U.S. inflation easing as some sectors slow, labor market strong

Coming Important Economic Data to take note:

➡️Singapore

Friday, June 23, 2023 : Core CPI / CPI

➡️United States

Tuesday, June 20, 2023 : Building Permits

: Housing Starts

Wednesday, June 21, 2023 : Fed Chair Powell Testifies

Thursday, June 22, 2023 : Initial Jobless Claims

: Existing Home Sales

: Fed Chair Powell Testifies

: Crude Oil Inventories Friday, June 23, 2023 : Manufacturing PMI

: Service PMI

: S&P Global Composite PMI

➡️China, HK

Monday, June 19, 2023 : CNY's PBoC Loan Prime Rate

---

Market Focus that Matters

📌 🌀Highlights🌀

# Alibaba names new chairman, CEO in surprise succession plan

# Malaysia cuts stamp duty for share trading and expedites IPO process to revive market

# Siemens to make EUR2 bil investment to boost high-tech plants

# Temasek's GenZero turns one with inaugural summit to explain 'nascent' decarbonisation sector

# Pasture Holdings' all-placement IPO fully subscribed

# China's big four state banks said to cut dollar deposit rates

# Singapore banks are so flush with deposits that DBS is loaning MAS $30 bil

Singapore :

• Abu Dhabi unit plans to acquire 7% of Nio

• Keppel announces new project that will generate $950 million for the group

• Oxley's Ching has stake in NewSat, which is suing banks for withdrawing credit

• Swiber Holdings receives nod from SGX-ST to delist

• Sanli Environmental acquires ESR-LOGOS REIT’s property at 22 Chin Bee Drive for $13.8 mil

• IREIT Global launches fully underwritten preferential offering to raise $75.9 mil

• Samudera Shipping Line acquires two container vessels for US$59.9 mil

• Great Eastern Holdings free float falls further with OCBC acquiring 2.3 million shares

• ISDN receives commercial operation approval and commencement date for two additional mini-hydropower plants

• Kim Heng signs MOU with KOMS to co-operate offshore windfarm, offshore projects

• SATS announces new organisational structure and new key executive appointments

• Seatrium makes share buyback debut; JEP chairman Luong raises stake

• Sembcorp’s subsidiaries in India receive approval for scheme of amalgamation

• Koh Brothers Eco secures $186 mil contract from HDB

• Peter Lim’s Thomson Medical eyes Vietnam FV Hospital deal

• Manulife US REIT's fifth-largest tenant to terminate lease early, pays fee of US$4 mil

• Temasek portfolio company disposes of CICT units worth $4.1 mil

• SGX total securities market down by 19.7% y-o-y to $22.96 bil in May

📌 🌀SG Earning Announcement🌀

Watch out for the Second Quarter Earning reporting season in July 2023...

📌

🌀Latest Market View published in ZaoBao/Media🌀

(June 2023)

Interview at ZaoBao on 15 June, click HERE to access if you are their subscriber.

美联储加息停步 海指应声上扬0.77% 美国联邦储备局在6月议息会议上宣布，维持政策利率不变，刺激本地房地产投资信托以及房地产股，推动新加坡海峡时报指数星期四（6月15日）上涨24.71点或0.77%，闭市报3242.85点。

经纪：房地产有所提振 下来关注能源相关股　辉立证券首席股票经纪谭莹莹在接受《联合早报》访问时说，美联储宣布6月暂停加息，提振了本地市场，特别是此前一直低迷的房地产投资信托和房地产股。短期内，前期超卖的股票会迎头追赶，投资者可关注与能源相关的板块。不过，如果星期五公布的我国5月份非石油国内出口数据依然不尽如人意的话，本地股市可能会由涨转跌。

资深股票经纪冯施钧说，美联储的最新举措表明，他们已从去年以来的持续加息，转变为通过经济数据来决定是否有进一步加息的必要。投资者应将关注点从货币政策转向公司盈利的基本面上。对于本地市场，情绪面的好转有利于市场近期的走势。

Interview at ZaoBao on 19 June

📌

🌀SGX & Other Newsfeed🌀

<Analyst Research>

---

CASH PLUS Promotion:

Low-commission trading account is available... and check out for Promotion Details

(Waived for US and HK Foreign Custody fee until 31 December 2022.)

Cashplus Account Opening

---

Important Disclaimer

A. Reminders: 1. Phillip Securities Pte Ltd ("PSPL") will generally provide you "execution only" services - see Guide and Cautionary Notes for Trading Accounts on www.poems.com.sg. You are therefore personally responsible to make your own decisions on the suitability of every securities transaction you do through PSPL. One exception is if you specifically apply and pay for advice from PSPL. The other is referred to in reminder 2. 2. Execution-Related Advice ("ERA") on listed Excluded Investment Products may be given to you, but only subject to strict conditions. These include (a) you accepting personal responsibility to ensure any such advice is suitable before you act on it, and (b) you ensuring that you both receive and understand the rationale for every ERA given to you. 3. Materials (including market and analyst reports) are provided to you as information on an execution only basis for you to make your own suitability decisions. Materials which are not ERA are provided strictly as you asked. These reminders apply to the contents of this e-mail as well as any and all accompanying materials sent under its cover. B. General Disclaimer: The information/materials provided (whether as attachments to this e-mail or in its body), where they are not ERA on listed Excluded Investment Products in compliance with the second reminder above, are provided for general information/circulation only and not intended and therefore should not be taken as any offer or solicitation to do any investment or trade. No assessment has been made by PSPL as to the suitability for you of any materials in or under this e-mail. As always, the decision to trade and/or invest remains solely with you. Information/materials in or under this e-mail are provided as is without warranty of any kind, either express or implied. Such information/materials provided have been procured from sources which are believed to be reliable and accurate (but whose reliability and accuracy cannot be and are not warranted); and may have been acted on by PSPL or members of the PhillipCapital group of entities before being made available to you. All investments are subject to investment risks. Ideally you should and you may wish to seek advice from an independent financial adviser before making a commitment to purchase or invest in the investment product(s) mentioned either in this e-mail or its attachment(s). If you choose not to do so, you are then choosing to make your own decision on whether any of the said investment product(s) are suitable for you. Neither PSPL nor any fellow member of the PhillipCapital group of entities shall, in any event, be liable to you for any direct/indirect or any other damages of any kind arising from or in connection with your reliance on any information in and/or materials attached to this email. C. General Confidentiality Note: This e-mail and its attachment(s) are intended only for the use of the recipient(s) named above. If you have received this message in error, please notify the sender immediately and delete all copies of it.

Confidentiality Note

This e-mail and its attachment(s) are intended only for the use of the recipient(s) named above. If you have received this message in error, please notify the sender immediately and delete all copies of it.