US stocks were higher after the close on Thursday, as gains in the consumer discretionary, materials and health sectors led shares higher. At the close of the NYSE, the DJIA rose 0.98% while the S&P 500 index gained 0.83%, and the NASDAQ Composite index advanced 1.05%. Advancing stocks outnumbered falling ones on the NYSE by 2,329 to 981 and 164 ended unchanged; on the Nasdaq Stock Exchange, 3,248 advanced and 1,293 declined, while 210 ended unchanged. (Source: WSJ, CNBC)
During the last trading session, the FSSTI index gained 17.27pt to 3,101.15. Among the top active stocks were Yangzijiang Shipbuilding (+0.7%), Thai Beverage (+0.8%), Genting Singapore (+1.4%), Jiutian Chemical (-2.4%) and UMS (+1.3%). The FTSE ST Mid Cap index was up 0.3% while the FTSE ST Small Cap Index rose 0.6%. The broader market saw 308 gainers and 163 losers with total trading value of S$1.28b.
Singapore Company Update:
ARA LOGOS Logistics Trust – The hunter or the hunted?
(ALLT SP/BUY/S$0.905/Target: S$1.07)
ALLT is able to grow organically riding on the expansion of 3PL and e-commerce in Singapore and Australia and via acquisitions tapping on its huge sponsor pipeline. We expect ALLT to benefit from cap rate compression from 5.1% to 4.5% in Australia, which increases NAV per unit by 7% to S$0.73. ESR Cayman’s acquisition of ARA Asset Management raises the prospects of ALLT being acquired by ESR REIT to prevent conflict of interest. Re-iterate BUY. Target price: S$1.07…
HK/ China Economy Update:
Automobile – Weekly: September EV sales beat expectations despite chip shortage.
Despite a sustained chip shortage, EV makers posted upbeat Sep 21 sales. Tesla’s 3Q21 deliveries grew 73% yoy and 20% qoq to a record high of 241,300 units. BYD’s EV sales surged 258% yoy and 16% mom to a record high of over 70,000 units in Sep 21. Most Chinese EV startups like NIO and Xpeng registered
mom sales recovery in Sep 21. We prefer EV stocks for their resilient sales. Maintain MARKET WEIGHT. Top picks: BYD, CATL, Zhongsheng and Yongda…
Shenzhou International – COVID- 19 restrictions eased in Vietnam. Maintain HOLD.
(2313 HK/HOLD/HK$155.20/Target: HK$165.00)
Shenzhou’s factories in Vietnam have gradually resumed operations in Oct 21. Based on our channel check, Shenzhou’s fabric/garment factories’ utilisation levels in Vietnam have recovered to 70%/60% of
pre-COVID-19 levels respectively. This longer-than- expected suspension of operations in Vietnam since mid-July largely impacted the company’s capacity growth and gross margin in 2H21. Maintain HOLD with a lower target price of HK$165.00…
Singapore Technical Analysis:
City Developments (CIT SP) – Trading BUY
Price broke and closed above the cloud, turning the stock outlook from bearish to bullish. There is still a bullish conversion and base line crossover that hints at potential upside…
Q & M Dental Group (QNM SP) – Trading BUY
Price rebounded from the resistance turned- support zone that formed since Mar 21. It closed above the middle Bollinger band with a bullish candle yesterday…