UOBKH: Retail Market Monitor - Friday, 7 January 2022

MARKET NEWS
US markets slipped overnight on Thursday, as losses in the materials and health sectors overshadowed gains in the energy sector. At the close of the NYSE, the DJIA lost 0.47%, while the S&P 500 index dipped 0.10%, and the NASDAQ Composite index was down 0.13%. Stocks that advanced outnumbered declining ones on the NYSE by 1,873 to 1,474 and 148 ended unchanged; on the Nasdaq Stock Exchange, 2,189 stocks advanced and 2,482 declined, while 258 ended unchanged. (Source: WSJ, CNBC)

During the last trading session, the FSSTI index inched up 19.63pt to 3,183.07. Among the top active stocks were AP Strategic (+50.0%), DISA (+12.5%), Singapore Telecommunications (+0.9%) and Sembcorp Marine (-1.2%). The FTSE ST Mid Cap Index was 0.63% lower while the FTSE ST Small Cap Index lost 0.40%. The broader market saw 218 gainers and 245 losers with total trading value of S$1.08b.

Singapore Company Update:
Sea – 2022 mega discount.
(SE US/BUY/US$184.72/Target:US$370.76)
Share price for Sea corrected close to 30% in 4Q21 following the increasingly hawkish stance by the US Fed and the Chinese government tightening policies in the ecommerce industry. More recently, the stake reduction by Tencent also spurred further doubts on Sea’s potential rebound. We deem the recent price action to be healthy, and firmly believe that the growth momentum for Sea’s main revenue driver, GMV, to continue going forward. Maintain BUY with target price of US$370.76…

HK/ China Sector Update:
Automobile – Weekly: PV sales growth hit by COVID-19 outbreak in 27-31 Dec 21. Maintain OVERWEIGHT.
In 27-31 Dec 21, daily average PV retail sales dropped 9% yoy and grew 5% mom. The weak auto sales in the last week of December were due to the sustained outbreaks of COVID-19. However, except for NIO, most Chinese EV companies posted over 100% yoy and 3-13% mom sales growth in Dec 21. CPCA projects China’s EV sales to grow 76% to 6m units in 2022, above our estimate of 5m units. Maintain OVERWEIGHT. Top picks: BYD, CATL, EVE, Xusheng and Nexteer…

Singapore Technical Analysis:
Kimly Limted (KMLY SP) – Trading BUY
The price correction was supported by the Fibonacci 38% correction point above the cloud, which kept the uptrend intact. The conversion and base lines had a bullish…

First REIT (FIRT SP) – Trading BUY
The price correction was supported by the Fibonacci 50% correction point above the cloud, which kept the chart outlook bullish. The conversion and base lines…

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