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Writer's pictureAda Tam Ying Ying

Market Update: Watch for the Fed Interest Rate Decision on 2 Nov and Start to Buy on dip...

(Update from 26th October - 1 November and market forecast)



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STI rebounded on better than expected UOB's 3Q earning result



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Points to Note

  • Twitter confirms completion of Elon Musk’s $44 billion acquisition deal last Friday

  • Xi Jinping reappointed for second term as China's president

  • UOB posts record high earnings of $1.4 bil in 3QFY2022, up 34% y-o-y

  • Temasek overhauls senior management with CFO Leong stepping down

  • Singapore's Inflation : MAS Core Inflation increased by 5.3% YoY; Singapore all-items CPI up by 7.5% YoY in the month of September

  • Singapore's Nodx : Singapore non-oil exports disappoint with 3.1% rise in Sept, electronics shrink again

  • Further MAS tightening still on the table for April 2023 with core inflation still elevated in September, say analysts

  • Analysts expect slowdown in NODX further into 2022 after September's NODX underperforms


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My latest Market View published in ZaoBao dated on 29th Nov:


MARKET SUMMARY

Part 1


MARKET SUMMARY

Part 2

For ZaoBao Subscriber, Click HERE



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To Investors :

Investment tip takeaway 🦉 this week:

Start to buy on dip


The performance of STI was lifted up by UOB 3Q result released last week and making STI the only market in Asia that closed in positive last Friday. And this week, 2 other banks DBS and OCBC will also announce their 3Q earnings on this Thursday (3/11) as well as Friday (4/11) respectively. Somehow, both announcement dates are also chosen right after the Fed Meeting on Wednesday night. A such, investors can take the chance to buy into the market whenever market pull back, awaiting for the Fed's interest rate decision.


Having the America's 2022 midterm elections are held on November 8, 2022, the U.S. markets are likely to stay uptrend for the first half of November.


Q3 Earning Result Announcement :

  • UOB posts record high earnings of $1.4 bil in 3QFY2022, up 34% y-o-y

  • Raffles Medical Group reports 62.1% surge in 3QFY2022 profit after tax of $38.3 mil

  • Far East Orchard reverses into profitability of $7.0 mil for the 9MFY2022

  • Micro Mechanics Holdings reports 14.6% lower earnings of $4.2 mil for 1QFY2023

  • Sheng Siong reports 4.5% y-o-y dip in 3QFY2022 net profit of $32.9 mil

  • QAF to recognise insurance payment as exceptional gain in its 2HFY2022 results

  • Keppel Corp reports 9MFY2022 revenue of $6.84 bil, up by 24% y-o-y

  • iFast reports net profit of $2.08 mil in 3QFY2022, expects 'accelerated growth momentum' from 2023 onwards

  • Second Chance Properties reports 44.5% increase in net profit for FY2022, proposes name change

REITs

  • CapitaLand China Trust ; NPI of $188.5 mil for 9MFY2022

  • CapitaLand India Trust ; NPI of $41.5 mil (4% higher) for 3QFY2022

  • CDLHT; NPI of $31.6 mil (increases by 54.4% YoY) in 3QFY2022

  • CapitaLand Ascott Trust says 3QFY2022 gross profit at 90% of pre-Covid-19 levels

  • MPACT reports 1HFY2023 DPU of 4.94 cents, 12.5% higher y-o-y

  • Starhill Global REIT reports 8.4% y-o-y increase in NPI for 1QFY2023

  • Far East Hospitality Trust reports 12% higher distributable income of $15.1 mil for 3QFY2022

  • Mapletree Industrial Trust reports 2QFY2023 DPU of 3.36 cents, down 3.2% y-o-y

  • Digital Core REIT reports distributable income of US$34.4 mil for 9MFY2022, 3.4% lower than forecast

  • Keppel DC REIT reports 5% increase in 3QFY2022 DPU of 2.585 cents

  • Suntec REIT reports DPU of 2.084 cents for 3QFY2022, down 6.6%

  • ESR-LOGOS REIT reports NPI of $69.9 mil for 3QFY2022, up 59.2% y-o-y

  • AIMS APAC REIT posts 1HFY2023 DPU of 4.70 cents, down 1.1% y-o-y

  • Frasers Centrepoint Trust reports 1.2% higher DPU of 12.227 cents for FY2022

  • MLT reports 3.5% y-o-y growth in 2QFY2023 DPU of 2.248 cents

  • Keppel REIT reports 3.4% higher distributable income for 9MFY2022, announces anniversary distribution



SG Earning Announcement Dates

Last Update : 28th Oct 2022



📍Economic Calendar: 30th Oct - 5th Nov📍

Singapore

(Sunday, October 30, 2022)

Bank Lending

(Monday, October 31, 2022)

Business Expectations (Q3)

(Friday, November 4, 2022)

Retail Sales Sep


United States

(Tuesday, November 1, 2022)

ISM Manufacturing PMI, JOLTs Job Openings, API Weekly Crude Oil Stock

OPEC Meeting

(Wednesday, November 2, 2022)

ADP Nonfarm Employment Change, Crude Oil Inventories

Fed Interest Rate Decision, FOMC Statement

(Thursday, November 3, 2022)

Exports, Imports, Trade Balance Sep, Initial Jobless Claims, S&P Global Composite PMI, Services PMI, Factory Orders (MoM), ISM Non-Manufacturing PMI Oct

(Friday, November 4, 2022)

Nonfarm Payrolls Oct, Unemployment Rate Oct

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Next 2022 FOMC Meetings:

December. 13-14


British

(Thursday, November 3, 2022)

BoE Interest Rate Decision


Australia

(Monday, October 31, 2022)

RBA Interest Rate Decision (Nov)


China / Hong Kong

(Sunday, October 30, 2022)

China, Manufacturing PMI (Oct)

(Monday, October 31, 2022)

HKD, GDP (YoY)

China, Caixin Manufacturing PMI (Oct)

(Wednesday, November 2, 2022)

HKD, Manufacturing PMI (Oct)

China, Caixin Services PMI (Oct)


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Last Week Economic Data Review :

Singapore

Non-Oil Exports (MoM) Sep (-3.9% ➡️ -4.0%)

Non-Oil Exports (YoY) Sep (11.4% ➡️ 3.1%)

Trade Balance (3.738B ➡️ 5.750B)

Core CPI (YoY) Sep (5.10% ➡️ 5.30%)

CPI (YoY) Sep (7.50% ➡️ 7.50%)

Industrial Production (YoY) Sep (0.4% ➡️ 0.9%)

Industrial Production (MoM) Sep (1.6% ➡️ 0.0%)

URA Property Index (QoQ) Q3 (3.5% ➡️ 3.8%)

Unemployment Rate (2.1% ➡️ 2.0%)


United States

Manufacturing PMI (Oct) (52.0 ➡️ 49.9)

S&P Global Composite PMI (Oct) 49.5 ➡️ 47.3)

Services PMI (Oct) (49.3 ➡️ 46.6)

CB Consumer Confidence Oct (107.8 ➡️102.5)

API Weekly Crude Oil Stock (-1.270M ➡️4.520M)

New Home Sales (MoM) Sep (24.7% ➡️-10.9%)

Crude Oil Inventories (-1.725M ➡️2.588M)

Core Durable Goods Orders (MoM) Sep (0.3% ➡️-0.5%)

GDP (QoQ) Q3 (-0.6% ➡️2.6%)

GDP Price Index (QoQ) Q3 (9.1% ➡️4.1%)

Initial Jobless Claims (214K ➡️217K)

Pending Home Sales (MoM) Sep (-1.9% ➡️-10.2%)


Australia

CPI (YoY) Q3 (6.1% ➡️7.3%)

PPI (YoY) Q3 (5.6% ➡️6.4%)


China

GDP QoQ Q3 (-2.7% ➡️ 3.9%)

Exports (YoY) Sep (7.1% ➡️ 5.7%)

Imports (YoY) Sep (0.3% ➡️ 0.3%)

Industrial Production (YoY) Sep (4.2% ➡️ 6.3%)

Retail Sales (YoY) Sep (5.4% ➡️ 2.5%)

Chinese Unemployment Rate (5.3% ➡️ 5.5%)


France

French GDP (YoY) (4.2% ➡️ 1.0%)

French CPI (YoY) (5.6% ➡️ 6.2%)



 

"When you have a dream, you've got to grab it and never let go."

 

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Other Focus (Highlights of Results / Corporate Actions):

Other extracted news:

  • UOB commits to 2050 net-zero targets across six sectors, to join DBS and OCBC in Net-Zero Banking Alliance

  • CapitaLand China Trust reports NPI of $188.5 mil for 9MFY2022

  • Another Cathie Wood fund exits Sea after US$175 bil selloff

  • Fresh Off the Block: Dogecoin surges on the back of Elon Musk’s Twitter takeover

  • CapitaLand Investment partners Dutch investment manager APG to build dominant self-storage platform in Asia

  • SGX partners MSCI to licence MSCI Climate Action Indexes for listed futures contracts

  • Nanofilm JV signs MOU with City Energy to study fuel cell solutions with hydrogen

  • Google, Temasek, Bain & Co trim 2025 forecast for Southeast Asia digital economy by US$30 bil

  • EMA appoints Sembcorp Industries to build energy storage systems on Jurong Island, ready in November

  • Singapore and Japan sign MOC on LNG cooperation and energy transitions

  • SIA redeems outstanding zero coupon MCBs worth $3.5 bil

  • Sembcorp partners Japanese government, various corporations to progress decarbonisation initiatives


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SGX & Other Newsfeed

💡 SGX <Analyst Research>



📣Earnings Calendar - 31 Oct 2022 to 4 Nov 2022


19 SGX-listed companies will be announcing their financial results and business updates this week, including 5 STI constituents, CapitaLand Ascendas REIT, DBS, CapitaLand Investment, OCBC, and SIA.


🔖Bookmark our Economic Calendar at bit.ly/3SzOWId for weekly updates of key macroeconomic events, earnings releases and corporate actions in the global and Singapore markets!



💡<Analyst Spotlight for 27 Oct 2022>


Banyan Tree Holdings Ltd (B58): Update report (FPA Financial)

- As international borders open and travel resumes, BTH's performance has improved across all business segments and regions. Revenue increased by 134% in 1H2022 compared to the same period a year ago.

- Maintain Buy recommendation with a target share price of S$0.426 (current S$0.280 at 7 October 2022)


Q&M Dental Group (QC7): Tender win alleviates short-term pressure (CGS-CIMB)

- Diagnostics arm Acumen has won a tender from the Ministry of Health to operate a Joint Testing & Vaccination Center, which is estimated to be worth S$3.6m in revenue.

- Upgrade to Add recommendation with a target share price of S$0.44 (current S$0.33 at 12 October 2022)


Grand Venture Technology Ltd (JLB): Delay in front-end customer acquisition (DBS Research)

- Diversification in the more resilient life sciences and medical segments a mitigating factor, and potential key customer acquisition in the front end remains a crucial catalyst.

- Maintain Buy recommendation with a target share price of S$0.57 (current S$0.455 at 17 October 2022)



📈 REIT Watch on The Business Times - S-REITs rebound amidst less hawkish rates expectations


With growing speculation that the US Federal Reserve will slow rate hikes to half a percentage point in December, global REITs saw a stronger performance last week. The FTSE EPRA Nareit Developed Index gained close to 4% last week while Singapore's iEdge S-REIT Index booked its strongest week this year with 6% returns.


Office REITs averaged 8% returns last week, the strongest sub-segment within the broader sector. This was followed by hospitality REITs and industrial REITs, averaging 7% and 5% gains, respectively.


Outperforming S-REITs for the week include Manulife US REIT, Keppel DC REIT, Aims Apac REIT, Keppel Pacific Oak US REIT, and CDL Hospitality Trusts. 4 of the above 5 S-REITs have reported earnings or business updates for the latest quarter, except for Manulife US REIT which will be reporting on 2 Nov.


To read the full article: bit.ly/3DVNfAZ



Closing


With the rising interest rate, I believed investors are getting more more risk-averse with the current economic situation, would seriously consider to park their money in fixed deposit with the bank to earn higher interest. And now, you may consider to earn a higher interest return with the idle cash that standby inside your trading account while awaiting for trading opportunities... Try our Phillip Money Market Fund SGD : 2.4564% p.a.

USD : 2.3638% p.a.

Rates updated as of 31 October 2022

 

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




 

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