Morgan Stanley predicts that Singapore's data centre market will maintain the highest prices in ASEAN due to a supply-demand imbalance, which would benefit data centre REITs.

The growth of data centre capacity in Singapore is expected to be limited due to land and power restrictions.

Despite the government's announcement of an additional 300MW in the pipeline, the high demand is likely to quickly absorb this, keeping the market tight.

Singapore's status as ASEAN's primary connectivity hub is expected to increase demand for data centres in or near the city.

Source: CSOP, Bloomberg as of 20240612

Data Centre REITS on SGX: DCRU, AJBU, ME8U, A17U

Diversified REITS ETF on SGX: SRT, CLR, CFA, BJY, GRN

[LAST Session] Dive into Value Stocks in the Resurgent Hong Kong Market! ?

Now welcomes our last session of the exclusive webinar series to explore the exciting opportunities in value investing. Esteemed market expert, Mr. Louis Wong, Director at Phillip Securities (HK), will share his insights and reveal his top value stock picks for the Hong Kong Market. Don't miss this chance to gain invaluable knowledge and uncover lucrative investment opportunities!

Register now and secure your spot!?

? Here's a little secret: I chanced upon this ETF recently that overperforms VOO, QQQ, CSPX (year-to-date).

"The Invesco S&P 500® Momentum ETF (Fund) is based on the S&P 500 Momentum Index (Index). The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index. The Index tracks the performance of stocks in the S&P 500® Index that have a high "momentum score". The Fund and Index are reconstituted and rebalanced twice a year on the third Fridays of March and September. Constituents are weighted by their market capitalization and their momentum score."

This is just one of the many "fishes" that beats S&P500 & Nasdaq ETFs.

Wanna learn a simple method to "fish" for quality ETF? (hint: it's easier than you think)

If we have 50 comments on this post, I'll share that in a very near future.

Ask and you shall receive!

Dive into Value Stocks in the Resurgent Hong Kong Market! ?

Join our exclusive webinar series to explore the exciting opportunities in value investing. Esteemed market expert, Mr. Louis Wong, Director at Phillip Securities (HK), will share his insights and reveal his top value stock picks for the Hong Kong Market. Don't miss this chance to gain invaluable knowledge and uncover lucrative investment opportunities!

Register now and secure your spot!?

Unveiling Hidden Gems: Exploring Hong Kong Value Stocks

Here's a quick summary of our 2nd session with Mr. Louis Wong!
We are already halfway through our value stocks series, don't miss out on the next 2!

You can watch the 2nd part of the series here:

Don't miss part 3 and 4 by signing up here:

*Phillip Global Markets Daily Notes: Hong Kong, China & Malaysia (04 June 2024)*

? *Global News Flow*

?Treasury Yields Sink as Weak Data Fuel Fed Bets: Markets Wrap
?Roaring Kitty Faces ETrade Ban as GameStop Holdings Surge 48%: Report
? India election 2024 live: Vote count set to begin after exit polls predict landslide win for Modi
?European Gas Surges as Norway Fault Exposes Supply Fragility
? British AI startup Venture Hub seeks to raise up to $50 million for a private credit fund to buy servers outfitted with high-powered Nvidia chips to be used by companies in Asia.


???? *China/HK News Flow*

? HSI Finishes Up 323 Pts; TENCENT & BYD Lead the Way; GENSCRIPT BIO Dives 18%
?HK 1Q24 Port Cargo Throughput Rises 3.8% YoY to 42.8M Tonnes
? BABA-SW Forecasts to Finish Dual Primary Listing at End-Aug; M Stanley Expects Southbound Inclusion in Sep Soonest


??*Malaysia News Flow*

? Sime Darby Plantation's 1Q net profit triples on lower tax, strong downstream ops
?Berjaya Corp's 3Q net profit jumps to nine-year high on disposal, accounting gains
?Tenaga's net profit falls 29% in 1Q due to forex losses and higher taxes

Source: Swissinfo,Bloomberg, hellenicshippingnews, decrypt,AAStock,Theedgemalaysia ,yahoofinance

*Phillip Global Markets Daily Notes: Hong Kong, China & Malaysia (31 May 2024)*

? *Global News Flow*

? Trump guilty on all 34 counts in hush money trial, historic first for a former U.S. president
? Oil Sinks as Weak Treasury Auction Creates Risk-Off Sentiment
? Dell () Falls After AI Server Sales Fail to Impress Investors
? Marvell Technology () stock slips on Q1 revenue miss

???? *China/HK News Flow*

? HSI Drops 246 pts at Close as CN Developers, Financials Feeble; Chips Hike
? Fitch: Support Measures for CN Property Mkt Won't Sharply Weaken Bank Asset Quality
? Mark Mobius Turns Bullish on CN Stocks, Favors XIAOMI-W
? AIA () Buys Back 10.29M Shrs for $618M

??*Malaysia News Flow*

? Google to invest US$2b for data centre and cloud region in Malaysia
? Genting Malaysia () posts RM58m net profit in 1Q on improved leisure and hospitality business
? IOI Properties' () 3Q net profit up 91%, boosted by RM211m Johor land sale
? Telekom Malaysia () 1Q net profit rises 29% on lower costs
? QL Resources () closes FY2024 with 35% growth in 4Q profit, record high annual profit

Source: Bloomberg, CNBC, Yahoo Finance, AAstocks, The Edge Malaysia, The Star

2 Potential Growth Trend Factors in Robotics
✅Aging Population and Labor Shortages: As populations age and labor shortages become more prevalent, robots can fill critical gaps in industries like healthcare and manufacturing.
✅Rising Labor Costs: In some regions, rising labor costs make robotic automation a more cost-effective solution for businesses.

2 Potential Risk Trend Factors in Robotics
❌High Initial Investment Costs: The upfront cost of acquiring and implementing robotic systems can be a barrier for some businesses, especially smaller enterprises.
❌Job Displacement Concerns: The widespread adoption of robots raises concerns about job displacement and the need for workforce retraining and reskilling.

Unveiling Hidden Gems: Exploring Hong Kong Value Stocks

We are halfway through our value stocks series with our special guest, Mr. Louis Wong!
Don't miss out on the latest value stocks picks and opportunities!

You can watch the first part of our 4 part series here:

Don't miss part 3 and 4 by signing up here:

"We value NikkoAM-StraitsTrading Asia ex Japan REIT ETF (AXJREITS) using a combination of historical dividend yield spread and price-to-book ratios."

? Interest rate cuts can provide REITs the triple benefit of a yield that is more attractive to bonds, lower interest expenses, and increase valuations as cap rates compress.

? AXJREITS offers investors stable income, attractive book value, and diversified, convenient, and efficient access to REITs across the Asian markets.

? The book value of the ETF has become more attractive over the last two years; it historically traded at a high of 1.2x price to book but now trades at a 10% discount to book.

Source:

There’s a huge flow going into Indonesia

source:

if you’re keen to participate in its market, here are 2 ETFs to consider

$ETF ISHRS MSCI Indonesia [AMEX: EIDO]

$ETF VanEck Indonesia Index ETF [AMEX: IDX]

PS: EIDO’s net asset is roughly 16x more than IDX as of today. for higher liquidity, go with EIDO.

? Singapore bankers took home less than their Hong Kong peers in 2023 Report

? Significant Pay Discrepancies: Hong Kong vice-presidents enjoyed a 60% bonus increase to US$72,131, while their Singapore peers saw a 40% reduction to US$43,539.

? Varied Bonus Trends: Junior bankers in Singapore faced minor bonus cuts, whereas senior directors experienced major reductions. Conversely, all Hong Kong finance levels saw substantial bonus increases.

? Diversify your investment with APAC Financials:

? Impact of COVID-19 and Geopolitical Tensions: Despite COVID-19 and US-China tensions impacting it, Hong Kong continues as a traditional banking hub; Singapore remains the prime hub for Southeast Asia.

? Working Hours and Inflation Influence: Hong Kong bankers, working longer hours, received larger pay hikes to combat high inflation, indicating different work-life balances and economic pressures compared to Singapore.

? Join the last webinar tonight at 6:30-7:30pm here:

*GMD Tracks Asia 26 April*

? *Global News Flow*

? Israel is preparing for a potential all-out war with Hezbollah. The US and allies pressed Hamas for the “immediate release” of all hostages.
? Donald Trump’s advisers are considering ways — including penalizing allies — to stop nations from shifting away from the dollar.
? Alphabet () soared in late trading as it announced plans to buy back an additional $70 billion in shares and declared its first-ever cash dividend, of 20 cents per share. Google’s ad revenue beat.
? Microsoft () rose on third-quarter revenue that topped estimates.
? Snap () surged after projecting sales in the current quarter will jump up to 18%.
? Intel () fell on a lackluster quarterly outlook, a sign it’s struggling in its turnaround.
? T-Mobile () beat on profit while growth slowed in its wireless high-speed internet business.
? ByteDance would rather shutter TikTok than sell it to any US buyer, Reuters reported.
? Earnings include Nomura, China Life, Shenhua Energy, Bocom, Mediatek, Hitachi, Denso, Maruti, NatWest, Remy Cointreau, TotalEnergies, Exxon, Chevron, Colgate-Palmolive, AbbVie


???? *China/HK News Flow*

? China will strengthen its informal guidance to state-owned banks in a push to stabilize credit growth and boost economic development, the State Council said.
? Beijing supports those lenders in selling total loss-absorbing capacity bonds.
? CNOOC () announced its results for 1Q ended March this year under China's corporate accounting standards. Net profit reached RMB39.719 billion, lifting 23.7% YoY.
? BYD () Buys back 959,900 A Shrs for 1st Time, Involving RMB201M.
? Morgan Stanley commented in a research report that market worries about the Mainland Chinese Visitor (MCV) insurance business are gradually dissipating but could be good rebound picks. [AIA (), PING AN (), CPIC () and CHINA LIFE ()]
? Cheap Chinese tech stocks are quietly emerging as winners at a time when several Magnificent 7 stocks are poised for April losses — their first drop in months — bogged down by elevated earning expectations and fading hopes of Fed cuts.
? Huawei’s New Phone Sports Latest Version of Made-in-China Chip, SMIC ()


????*Malaysia/ Indonesia News Flow*

? MY Prime Minister Datuk Seri Anwar Ibrahim gave assurance that the revised public service remuneration system will be the best ever introduced.
? Nasdaq-listed TTM Technologies () invests RM958 mil for manufacturing plant in Penang.
? AirAsia X () to buy Capital A's () aviation business for RM6.8b via share and debt deal
? Pantech () mulls listing two subsidiaries on Main Market via SPV.
? Inta Bina () bags RM224.8m job to build business serviced apartments in Subang Jaya.


Source: Bloomberg, Aastocks, Bernama

*GMD Tracks Asia 25 April*

? *Global News Flow*

? Meta () plunged 15% postmarket after it boosted spending projections for the year and its second-quarter sales forecast missed estimates.
? Alphabet () and Microsoft () may both say AI workloads boosted cloud earnings in their earnings call tonight after market close.
? Analyst expect Snap () to post its biggest net loss since 2017. Earnings after market close.
? Biden Makes $11 Billion Push to Beat China at Chip Research.
? Asia stocks dropped after Meta’s results, which also dragged Nasdaq futures sharply lower. JPY touched a fresh 34-year low, with traders on high alert for intervention as the BOJ’s two-day policy meeting got underway.
? BHP (, ) considering a potential takeover of Anglo American in what may be the biggest deal this year.
? Boeing () downgraded by Moody’s to one notch from junk.
? Earnings tonight include AstraZeneca, Sanofi, Airbus, Merck & Co., Caterpillar, Bristol Myers, Southwest Air, Comcast, American Air, Microsoft, Intel, Alphabet, T-Mobile, Snap.

???? *China/HK News Flow*

? SENSETIME-W () opened up 17.5% on trading resumption in HK morning trading and peaked at HKD 0.96
? GREAT WALL MOTOR CO LTD-H () announces Q1 2024 Net Profit RMB 3.228 billion (17.5x YoY), the company also undergo with new round of organizational re-structuring according to Chinese media.
? XIAOMI-W () Xiaomi SU7's order volume as at 24th May was around 75,700 units and delivered 5,781 units in 28 days.

????*Malaysia/ Indonesia News Flow*

? M'sian automakers expected to feel pinch from lower sales, higher costs, rise of Chinese OEMs
? Malaysia-China trade improved amid republic's better-than-expected 1Q growth, says Trade and Industry Minister Zafrul
? Malaysia weighs casino license to revive Forest City in Johor.
? Fajarbaru Builder () bags RM252m construction job in Johor Bahru from WCT.
? Hibiscus Petroleum () completes drilling at Bunga Aster-1 well, first oil production set for next month.
? Sapura Industrial () inks MOU with Mili Tech for feasibility studies on EVs.
? United Plantations () kicks off FY2024 on positive note as 1Q profit rises 18.5%.
? Jiankun International () partners Micro Energy to equip homes in Penang's Taman Panchor Jaya with solar PV systems.



Source: Bloomberg, Aastocks, The Edge Malaysia

Tesla to accelerate launch of cheaper cars after sales miss

Accelerated Launch of Affordable Models: Tesla is expediting the production of more affordable models to counter falling profit margins and sales, planning a start before the second half of 2025 amid waning EV demand.

Financial Results Below Expectations: Tesla reported first-quarter earnings of 45 US cents per share, below the expected 52 US cents, with revenue dropping 9% to $21.3 billion, its first year-over-year delivery decline since 2020.

Stock and Growth Outlook: Despite a 42% year-to-date stock decline, Tesla shares increased by 7% post-announcement. The company foresees lower delivery volumes in 2024 as it focuses on new vehicle launches and product development.

Source:

Related ETF: DRIV
YTD: -6.45%
1 year: 2.15%
5 year: 58.61%
Date: 24 APR 24

Here's an overlooked gem of the financial sector...

? The life insurance industry in Asia-Pacific (APAC) was the world’s largest in 2021, with five Asian countries featuring among the top 10 global markets by written premiums

? From 2021-26, China, India, Hong Kong and Singapore are expected to maintain a Compound Annual Growth Rate (CAGR^) of 5% to 10%. Singapore’s life insurance industry is expected to exceed S$100.4 billion in 2027

? In the same period, emerging markets in APAC such as Indonesia, Thailand and Malaysia are expected to grow at CAGR of 5% to 22% respectively.

To find out more, join the last seminar @ SGX on 24 April, Wed, 7pm-830pm via:

"Focus. Income. Growth."

3 lessons I learnt from today’s seminar: Lion-OCBC APAC Financials ETF

(1) Financial is not just banks, but also investment management, insurance, brokerages/exchanges.

(2) It’s an ecosystem that smoothens capital flow to enable economies to trade globally, thus its service is necessary throughout history.

(3) An APAC Financial ETF consists of financial firms from different countries. This provides geographical and/or interests rate diversification.

Join the last 2 events if you're looking to invest for dividends.
- 24th Seminar:
- 29th Webinar:

- Israel launched a retaliatory strike on Iran

- Brent oil reversed gains after earlier jumping past $90 a barrel

- Raphael Bostic reiterated his view that the Fed shouldn’t lower rates until closer to the end of the year

- Investors are pulling money out of equities as a strong US economy fuels fears

Israel launched a retaliatory strike on Iran less than a week after Tehran’s rocket and drone barrage, according to two US officials. Iran downplayed the incident and said an attack by Israeli drones failed; the IAEA said no nuclear sites were damaged.

1) Joe Biden is weighing more than $1 billion in new arms for Israel, the WSJ reported.
2) Iran has no plans to retaliate immediately, Reuters reported.
3) Secretary of State Antony Blinken said the US wasn’t involved in any offensive operations.

Brent oil reversed gains after earlier jumping past $90 a barrel. Futures pared losses and the bid for haven assets unraveled as Israel-Iran tensions appeared contained for time being. Treasuries rose, and gold was little changed.

Raphael Bostic reiterated his view that the Fed shouldn’t lower rates until closer to the end of the year, while Neel Kashkari raised the prospect of holding all year. Two-year Treasury yields may see a move toward 5.25% if investors “price out” the odds of any cut in 2024, Brandywine said.

Investors are pulling money out of equities as a strong US economy fuels fears that the Fed will keep rates higher for longer, BofA said. US stock funds saw the biggest two-week outflow since December 2022, while IG bonds notched their 25th straight week of inflows, according to EPFR data.

*GMD Tracks APAC 19 April*

? *Global Newsflow*

? Netflix () topped projections for revenue and new subscribers. Will stop reporting quarterly subscribers next year. Q2 revenue forecast missed.
? Sony () is in talks with Apollo on a joint bid for Paramount Global, a person familiar said. Paramount () jumped 6% postmarket
? Treasury selloff deepened amid the Fed hawkish comments. Vanguard warned 10-year yields risk jumping back to 5%.
? The US imposed fresh sanctions on Iran over its strike on Israel.
? TSMC () scaled back its outlook for a chip market expansion, cut its expectations for 2024 semiconductor market growth, excluding memory chips, to about 10%.


???? *China/HK Newsflow*

? China will be the top contributor to global growth over the next five years, with its share — about 21% — bigger than all of the G-7 combined, and almost double the nearly 12% for the US, according to Bloomberg calculations using IMF data.
? HSBC HOLDINGS () to Consider Payment of 1st Interim Div. for 2024, Special Div. at End-Apr.
? Big 4 HK Banks (HSBC , Standard Chartered , BOC HK , Hang Seng Bank ) Tighten Mortgage Policies, Ending Cash Rebates.
? PACIFIC BASIN () announced its intention to implement a share buy-back program up to US$40 million from the open market for a period from 25 April 2024 to 31 December 2024.

dropped 5.7% in US Asian Hours session, after reporting earnings post market.
Tradable on US Asian Hours via POEMS (08:00am to 16:00pm)


Sources:
Bloomberg, Aastocks

1.
2.
3.