UOBKH: Retail Market Monitor - Tuesday, 4 January 2022

WHAT HAPPENED LAST NIGHT
US markets rose to record highs on the first trading day of 2022, propelled by the energy, consumer discretionary and financial sectors. At the close of the NYSE, the DJIA gained 0.68%, while the S&P 500 index was up 0.64%, and the NASDAQ Composite index jumped 1.20%. Stocks that advanced outnumbered declining ones on the NYSE by 1,945 to 1,463 and 113 ended unchanged; on the Nasdaq Stock Exchange, 3,331 stocks advanced and 1,463 declined, while 182 ended unchanged. (Source: WSJ, CNBC)

Singapore Company Update:
CDL Hospitality Trusts - Weathering the Omicron variant wave; reopening to resume in 2H22. Upgrade to BUY.
(CDREIT SP/BUY/S$1.20/Target: S$1.42)
Singapore’s border and existing VTLs have been kept open despite the government scaling down capacity for VTLs by air and land by half starting 21 Jan 22. CDREIT benefits from stable contribution from Grand Millennium Auckland, which serves as a managed isolation facility. We anticipate rapid recovery from Hilton Cambridge City Centre and The Lowry Hotel in the UK after they weather the Omicron variant wave in 1Q22. Upgrade to BUY with target price at S$1.42…

HK/ China Strategy Update:
Alpha Picks: January Conviction Calls.
Chinese equities market remained volatile in Dec 21 as surges of Omicron outbreaks clouded economic revival efforts amid regulators’ efforts to offer clarity on the policy front. Despite the setbacks, based on our expectations that peak regulatory risks have passed with most of the bad news already priced in, we expect the Chinese market to offer some bargains in 2022, supported by more favourable shifts in monetary policy…

Singapore Technical Analysis:
Hong Long Asia (HLA SP) - Trading BUY
The price broke above the cloud in the previous trading session, changing the chart outlook to bullish. The conversion and base lines had a bullish crossover…

Rex International Holdings (REXI SP) - Trading BUY
The price broke above the cloud in the previous trading session, changing the chart outlook to bullish. The conversion and base lines had a bullish crossover…

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