WHAT HAPPENED LAST NIGHT
US stocks were lower after the close on Monday, as losses in the energy, consumer discretionary and financials sectors led shares lower. At the close of the NYSE, the DJIA fell 1.78% while the S&P 500 index was down 1.70%, and the NASDAQ Composite index slid 2.19%. Falling stocks outnumbered advancing ones on the NYSE by 2,798 to 532 and
107 ended unchanged; on the Nasdaq Stock Exchange, 3,698 declined and 786 advanced, while 153 ended unchanged. (Source: WSJ, CNBC).
Singapore Company Update:
BRC Asia – Major beneficiary when labour supply returns.
(BRC SP/BUY/S$1.48/Target: S$1.76)
As the market leader in the supply of steel products in Singapore, BRC is set to benefit from the recovery in the construction sector and major upcoming projects including the new Tuas Mega Port, Changi Airport Terminal 5 and Greater Southern Waterfront. Recent investment from Hong Leong Asia, making it the second-largest shareholder with a 20% stake should boost market confidence and lead to growth opportunities for BRC. Maintain BUY with a lower target price of S$1.76…
Industrial Automation – Prefer Inovance amid tough operating environment. Maintain OVERWEIGHT.
Domestic industrial automation names are seeing disruptions from COVID-19, as well as margin squeeze across the board driven by raw material and component price hikes as well as elevated transportation expenses. Market has also shifted focus to a potential peak in automation demand in 2021; although our channel check shows the secular growth story remains intact despite the inevitable slowdown in growth. We prefer Inovance for its scale and strong execution. Maintain OVERWEIGHT…
Singapore Technical Analysis:
Singapore Exchange (SGX SP) – Trading BUY
Price could have formed a bottom at S$9.85. It is now consolidating, while both Bollinger bands are narrowing,
suggesting a potential breakout with high volatility ahead…
StarHub (STH SP) – Trading BUY
Price is now consolidating at the Fibonacci 50% correction point. The momentum indicator, the MACD, is still
bullish at the moment. A bullish MACD crossover is also likely in the coming session…