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MARKET NEWS

US stocks were lower after the close on Tuesday, as losses in the communication services, technology and health sectors led shares lower. At the close of the NYSE, the DJIA fell 0.34% while the S&P 500 index was down 0.24%, and the NASDAQ Composite index slid 0.14%. Advancing stocks outnumbered falling ones on the NYSE by 1,987 to 1,302 and 148 ended unchanged; on the Nasdaq Stock Exchange, 2,605 advanced and 1,838 declined, while 215 ended unchanged. (Source: WSJ, CNBC)

Yesterday, the FSSTI index ended 1.44pt lower at 3,112.05, taking the ytd performance to +9.4%. Among the top active stocks were Singtel (-0.4%), ComfortDelGro (+0.7%), Genting Singapore (-0.7%), Rex International (+3.8%) and Jiutian Chemical (-1.3%). The FTSE ST Mid Cap Index rose 0.6%, while the FTSE ST Small Cap Index was up 0.3%. The broader market saw 205 gainers and 247 losers with total trading value of S$1.20b.

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United Overseas Bank – ASEAN recovery in 2022, NIM expansion in 2023.
(UOB SP/NOT RATED/S$26.14)

Loan growth should pick up in 2H21, driven by corporate customers locking in current low interest rates, drawdown for residential mortgages and acquisition of commercial real estate, hospitality properties and new economy assets in developed markets. Loans-related fees are on track to hit a new record for the full
year in 2021. The Fed is expected to commence interest rate hikes in 4Q22, which will have a positive impact on UOB’s NIM in 2023…

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Automobile – Weekly: September PV sales up 8.9% mom on eased chip shortage.

China’s PV retail sales dropped 17.3% yoy and grew 8.9% mom in Sep 21 on eased chip shortage. The Chinese brands and passenger EVs outperformed the industry, growing 16% and 33% mom in retail sales
in Sep 21. We prefer EV stocks for their resilient sales. Maintain MARKET WEIGHT. Top picks: BYD, CATL,
Zhongsheng and Yongda…

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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 (ETFs) 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)