Investment tip takeaway 🦉 this week:
A directionless week after the Q2 earning announcement period was getting over soon... and economic data are putting back in focus with the soaring inflation.
Singapore
SG's Non-Oil Exports (MoM)/(YoY), Previous: 3.2%/8.5%... Actual: 1.4%/7%
-> Singapore non-oil exports grow at slower pace of 7% in July (Strait Times)
SG's Trade Balance, Previous: 4.479B... Actual: 3.478B
(Importance of Trade Balance: Country's Exports – Country's Imports) Trade surplus can create employment and economic growth, but may also lead to higher prices and interest rates within an economy
United Stated
USD's NY Empire State Manufacturing Index Aug, Previous: 11.10... Actual: -31.30
-> Business activity declined sharply in the New York State
USD's Housing Starts (MoM)/(YoY), Previous: 2.4%/1.599M... Actual: -9.6%/1.446M
-> Drop in the number of single family houses that started construction in Jul
USD's Philadelphia Fed Manufacturing Index, Previous: -12.3... Actual: 6.2
USD's Industrial Production (MoM)/(YoY), Previous: -0.2%/4.02%... Actual: 0.6%/3.90%
-> Output produced by manufacturers, mines, and utilities in July improved
USD's API Weekly Crude Oil Stock, Previous: 2.156M... Actual: -0.448M
USD's Crude Oil Inventories, Previous: 5.458M... Actual: -7.056M
-> Inventory levels of US crude oil, and petrol dropped
USD's Retail Sales (MoM)/(YoY), Previous: 0.8%/8.54%... Actual: 0%/10.02%
-> US retail sales unexpectedly stalled in July of 2022
To Investors :
Last week, the market could be in the “Post-Earnings-Announcement Drift” after majority of the earnings surprises had been announced as scheduled, and rendered the markets to go back to the fundamental issue: inflation. And the truth is now, all eyes are on the September rate hike could probably slow down to 50 basis points, but in return the worry on recessions reignited. As mentioned, can U.S. Dollar remain strong and continue to appreciate against other currencies with rising interest rate, is very important to determine whether Fed had taken the right approach to deal with inflation, as high prices of goods and services over time, does erode purchasing power nationwide.
Last Friday market sell down seem affected by the U.S. option expiration since many companies earnings might have surprised investors and some may chose not to exercise the buy options... but the coming focus now is on the Jackson Hole conference this coming Thursday (US times), investors may want to wait for more signals given out by Fed Chair Jerome Powell on the economy outlook before re-strategize your trading positions again.
Other link:
🌀 Focal Point :
📣 Unit State:
Fed's Powell to speak on Aug. 26 at Jackson Hole conference
Trading will begin on a stock split-adjusted basis on August 25, 2022
📣 Singapore: Consumer Price Index (CPI) announcing this coming Tuesday; gives an idea of the cost of living, track the rate of change in Singapore's inflation
"Success usually comes to those who are too busy to be looking for it."📌
Other Focus (Results and Highlights of Corporate Actions):
💡 <Analyst Spotlight for 18 August 2022>
➡️ Q&M Dental Group (QC7):
No reprieve amid reduced Covid-19 cases (CGS-CIMB)
- 2Q22 revenue from dental and medical clinics rose by 1.5%/4.8% qoq/yoy amid lower dental clinic visits throughout 1H22
- Reiterate Add recommendation with a target share price of S$0.73 (current S$0.48 at 15 August 2022) bit.ly/3SZAp9Z
➡️ COSCO SHIPPING International (Singapore) (F83):
Watch for inorganic growth (DBS Research)
- 1H22 revenue declined 3% y-o-y to S$92.4m, mainly due to the absence of shipping revenue
- Maintain Hold recommendation with a target share price of S$0.24 (current S$0.19 as at 15 August 2022) bit.ly/3CiAgIW
➡️ ARA US Hospitality Trust (XZL):
Shooting for the stars! (DBS Research)
- Expect growth to continue in 3Q22 as pent-up travel demand momentum translates to higher revenues
- Reiterate Buy recommendation with a target share price of US$0.70 (current US$0.475 at 17 August 2022) bit.ly/3dGJm8h
🗃️ For more broker research reports, kindly visit our SGX Analyst Research page. bit.ly/3w8Sf0A
Results :
Golden Agri | 1HFY2022 | Reported earnings of US$389.6 million ($533 million), up 154% | an interim dividend of 0.8 cents per share |
Golden Energy | 1HFY2022 | Reported earnings of US$279 million, up 859% y-o-y | - |
Marco Polo | 3QFY2022 | Gross profit increased 185.3% y-o-y to $9.7 million | - |
Medtecs | 1HFY2022 | Reported a loss of US$3.7 million, versus earnings of US$19.1 million in the year earlier six months | - |
Mooreast | 1HFY2022 | Report earnings more than doubled from $392,000 to $872,000 | - |
NetLink NBN | 1QFY2023 | Reported a profit after tax (PAT) of $27.6 million, 11.3% y-o-y | - |
Oceanus | 1HFY2022 | Higher Sales of $85.7 million, but higher financing and operation costs resulted a loss of $818,000 | - |
Oxley | FY2022 | Reported earnings of $3.2 million, down 75% y-o-y | a final dividend of 0.25 cent per share |
Q&M | 1HFY2022 | Reported earnings was down 45% y-o-y to $9.9 million | withholds interim dividend |
SGX | 1HFY2022 | Reported earnings of $451.4 million, up 1% y-o-y | a full year dividend payout at 32 cents |
SingPost | 1QFY2022/2023 | Reported group operating profit of $10.6 million, 46.7% lower y-o-y | - |
Straits Trading | 1HFY2022 | ARA divestment gain: distribution in specie worth some 50 cents per share | a special dividend; choose between receiving 180 Straits Trading shares, or 145 ESR shares |
Union Gas | 1HFY2022 | Reported earnings down 83% y-o-y to $2.4 million. | an interim dividend of 0.2 cent per share |
Other extracted news:
Tencent's sales dropped for the first time, revenue fell more than market estimate to 134 billion yuan, and net income plunged 57% for Q2
Sea's losses more than double in its 2QFY2022 ended June 30, from US$433 million ($595.66 million) to US$931 million in 2QFY2022. However, revenue for the company rose 29% for the quarter to US$2.9 billion.
Coming Market Focus (Extract):
🔖 Bookmark our Economic Calendar 21 August 2022 – 26 August 2022 for weekly updates of key macroeconomic events, earnings releases and corporate actions in the global and Singapore markets.
Monday, August 22, 2022 | |
HKD | CPI (YoY) Jul |
CNY | PBoC Loan Prime Rate |
Tuesday, August 23, 2022 | |
SGD | Core / CPI (YoY) Jul |
JPY | BoJ Core CPI (YoY) |
GBP | Composite / Manufacturing / Services PMI |
USD | Manufacturing / Services PMI New Home Sales Jul API Weekly Crude Oil Stock |
Wednesday, August 24, 2022 | |
USD | Durable Goods Orders (MoM) Jul Pending Home Sales (MoM) Jul Cushing / Crude Oil Inventories |
Thursday, August 25, 2022 | |
USD | GDP (QoQ) Q2 / GDP Price Index (QoQ) Q2 Initial Jobless Claims Jackson Hole Symposium 7-Year Note Auction |
HKD | Exports / Imports (MoM) Jul, Trade Balance |
Friday, August 26, 2022 | |
SGD | Industrial Production (MoM, YoY) Jul |
USD | Core / PCE Price Index (YoY, MoM) Jul Good Trade Balance Jul Personal Spending (MoM) Jul Jackson Hole Symposium (till 27/8) |
CNY | Chinese Industrial Profit |
p.s:
Next FOMC Meetings 2022; September. 20-21
Focus Point : Blockchain, NFTs and the Metaverse
Bitcoin didn't continue its uptrend last week even I thought it should be able to move up from USD 23,500 level, but today it had pull back to USD 21,000 instead. Then, I realised other than Bitcoin, coin like Dogecoin had a short-lived surge in pricing few days ago. Indeed rising interest rate resulted with stronger US Dollar, bur I had also overlooked one important aspect of bitcoin: there are simply too many types of bitcoins to chose from... and Bitcoin (BTC) though has the biggest market cap but can only be taken as a benchmark in comparison with other coins in the market. For August and September, I'm still optimistic on the outlook of bitcoins, and will continue to update on its movement next week.
Are your ready for virtual media influencer ? Watch 👇🏽
Today, the AI characters are taking over the human roles as your favourite influencers in your Instagram, and in fact many companies are making their own KOL to market products. South Korean influencer Rozy (not a real human) has over 130,000 followers on Instagram. And in fact, it is much more economical efficient today in making a AI robot as a spokesperson to uplift the product brand image among the young than engaging a real human.
Technology had ever made bitcoin seem as precious as gold, and also made art piece shone in a different lights during COVID through NFT blockchain technology. Hence, I won't feel pessimistic over the future growth on technology stocks because of its recent reported falling sales, but coping with the fast changing technology trends make the share price of those technology-reliance stocks becoming more volatile than ever, as the demands are usually come-and-go.
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