MARKET NEWS

US stocks rose to another record high on Tuesday, as gains were led by the real estate, technology and consumer staples sectors. At the close of the NYSE, the DJIA rose 0.39%, while the S&P 500 index gained 0.37%, and the NASDAQ Composite index was up
0.34%. Falling stocks outnumbered advancing ones on the NYSE by 1,813 to 1,527 and 159 ended unchanged; on the Nasdaq Stock Exchange, 2,314 stocks advanced and 2,245 declined, while 228 ended unchanged. (Source: WSJ, CNBC)

The Straits Times Index (STI) closed 12.46pt higher to 3,231.51. Among the top active stocks were UOB (+1.9%), Yangzijiang Shipbuilding (-5%), DBS (+0.7%) and Jardine Matheson (+2.8%). The FTSE ST Mid Cap Index dipped 0.1%, while the FTSE ST Small Cap Index rose 0.24%. The broader market saw 206 gainers and 275 losers with total trading value of S$1.19b.

WHAT’S IN THE PACK

Singapore Strategy Update:

Alpha Picks: Short Financials, Removing Innotek And UMS, Adding iFast, Thai Bev, Civmec And Uni-Asia.

Our Alpha Picks portfolio marginally underperformed the STI, rising 2.9% mom vs the latter’s 3.6% increase. For Nov 21,
we advocate a tactical short on DBS and OCBC given Sea Ltd’s materially higher weighting in the MSCI Singapore index by
end-Nov 21. In addition, we remove Innotek and UMS and add iFast, Thai Beverage Civmec and Uni-Asia, with the
latter two being recent initiations of coverage…

HK/ China Sector Update:

Condiment – Soy sauce, oyster sauce and everything nice.

We initiate coverage on China’s condiment sector with an OVERWEIGHT rating. We think the leading players are attractive to investors due to price-inelastic customer demand, barriers to entry and their strong pricing power as seen from the price hikes in previous years. The sector would see rising shipments and ASPs (>8.2% 3-year CAGR in market size in 2020-23) in the future. The leading players’ valuations are attractive after price declines and we foresee an incremental improvement in the sector…

HK/ China Technical Analysis:

BIDU-SW (9888 HK) – Trading BUY

The price is supported by the Ichimoku cloud as well as the base line. A price gap is also providing support to the price. There was a bullish conversion and base line crossover…

Air China (753 HK) – Trading BUY

The price is supported by the Ichimoku cloud as well as a previous resistance turned support line. Conversion and base line had a
bullish crossover. The MACD is bullish…