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MARKET NEWS

US stocks were mixed after the close on Tuesday, as gains in the communication services, consumer discretionary and technology sectors led shares higher and losses in industrials, utilities and real estate sectors led shares lower. At the close of the NYSE, the DJIA fell 0.76% while the S&P 500 index was down 0.34%, and the NASDAQ Composite index
advanced 0.07%. Falling stocks outnumbered advancing ones on the NYSE by 2,305 to 1,023 and 135 ended unchanged; on the Nasdaq Stock Exchange, 2,762 declined and 1,663 advanced, while 166 ended unchanged. (Source: WSJ, CNBC)

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Yesterday, the FSSTI index ended 7.45pt higher at 3,108.53, taking the ytd performance to +9.3%. Among the top active stocks were Sembcorp Marine (-2.3%), Yangzijiang Shipbuilding (+0.6%), Thai Beverage (-0.7%), ISDN (+1.5%) and Japfa (+2.1%). The FTSE ST Mid Cap Index fell 0.38%, while the FTSE ST Small Cap Index was down 0.01%. The broader market saw 249 gainers and 215 losers with total trading value of S$898.8m.

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InnoTek – Gaining traction in the EV, healthcare and consumer industries.

(INNOT SP/BUY/S$0.845/Target: S$1.20)

We are confident that Innotek can achieve 28% yoy earnings growth for 2021, on the back of robust revenue growth in the auto segment of 45% yoy for 1H21. Also, winning of new business in the EV, healthcare equipment and gaming
consoles should boost growth. Innotek’s solid 1H21 earnings of S$7.2m (+94% yoy) was in line with our expectation,
meeting 41% of our full-year estimate. Innotek currently only trades at 5x ex-cash 2022 PE. Maintain BUY and target price of S$1.20 (12x 2022 EPS)…

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HK/ China Economy Update:

Trade – August trade figures surprise on the upside.

China’s export rose at a faster pace of 25.6% yoy in August, beating market expectations, while imports also increased solidly by 33.1% yoy, amid disruptions to global supply chains. While there have been gentle signs of relief, export growth could continue to moderate in 4Q21 with weaker new export orders and a higher base for comparison…

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Monthly Technical Regional Indices Watch

In this report, we provide the outlook of regional indices on a monthly basis. We also include a list of tradable exchange Traded Funds (ETF) for each of the said indices.

The said indices under our coverage are:
• Hang Seng Index (HSI IND)
• FTSE Bursa Malaysia Kuala Lumpur
Composite Index (FBMKLCI IND)
• Jakarta Stock Exchange Composite
Index (JCI IND)
• Stock Exchange Of Thailand Index
(SET IND)
• FTSE Straits Times Index (STI IND)