Weekly | Why Delta TH SDR Lead the Market this Week?
As of the close on Friday, $Straits Times Index(STI.SI)$ closed at 3,297.55 points, down 1.00% points last week.
During the last 5 trading days, $Delta TH SDR(TDED.SI)$, $Man Oriental USD(M04.SI)$, $Top Glove(BVA.SI)$, $IFAST(AIY.SI)$ and $YZJ Shipbldg SGD(BS6.SI)$ are the top 5 weekly gainers, up 6.50%, 5.17%, 4.76%, 2.86% and 1.66% respectively.
$CP All NVDR(TCPD.SI)$, $SingPost(S08.SI)$, $HongkongLand USD(H78.SI)$, $ThaiBev(Y92.SI)$ and $NIO Inc.(NIO.SI)$ are top 5 decliners of SGX stocks which market capital above S$1 Bln.
Below are key analyses of the TOP 5 gainers:
1. $Delta TH SDR(TDED.SI)$
Last week, the latest CPI data from the US indicated a cooling of inflation. On Wednesday, 12th June, the Fed kept interest rates unchanged, aligning with market expectations. According to Nick Timiraos from the Wall Street Journal, the dot plot shows that a rate cut later this year is the Fed's baseline forecast.
The macroeconomic policy outlook boosted semiconductor and chip stocks, with TSMC hitting another all-time high last week and NVIDIA's stock price continuing to rise to new records following its recent 10-for-1 stock split.
According to its official website, Delta TH SDR is a crucial manufacturing hub for global customers, including major tech and automotive corporations.
Delta TH SDR recently represented Thailand’s advanced electronics manufacturing sector at the Bangkok Post ESG Conference 2024. According to the company, Delta is the only electronics manufacturer in Thailand listed on the Dow Jones Sustainability Indices' World Index from 2022 to 2023.
2. $Man Oriental USD(M04.SI)$
Man Oriental USD, a Singapore-based international hotel investment and management company, operates deluxe and first-class hotels, resorts, and residences worldwide.
According to businesstimes, the company has signed an option to sell its interests in two retail units adjacent to the Mandarin Oriental, Paris, for 148 million euros (S$261.9 million).
As reported, in a filing on Wednesday, 12 June, the company, which also has a secondary listing in Singapore, stated that the buyer is Lavender Propco, an entity controlled by Blackstone Europe.
3. $Top Glove(BVA.SI)$
After a nearly 7% surge the previous week, Top Glove Corp. rose by another 5% this week. UOB KayHian believes that Malaysian glove stocks have officially emerged from their slump, with earnings expected to grow in the coming quarters.
UOB KayHian analyst recently stated that the earnings performance of glove stocks in the first quarter of this year was mixed due to the lag in passing on costs and a mismatch between average selling prices and costs during the quarter.
"The previous downward trend in average glove prices has stopped and is gradually reversing, with volumes showing a strong quarter-on-quarter rebound in the first quarter," the analyst said, "optimism may continue to drive the rise in glove stocks."
The analyst maintains an "overweight" rating for the glove sector in Malaysian stock market and a "buy" rating for Top Glove.
4. $IFAST(AIY.SI)$
According to its official website, iFAST Corporation, headquartered in Singapore, is a global digital banking and wealth management platform. It offers a comprehensive range of investment products and services to financial advisory firms, financial institutions, banks, internet companies, multinational corporations, and both retail and high net worth investors across Asia.
iFast issued S$100 million worth of 4.328% bonds due in 2029 as part of its S$300 million multicurrency debt issuance program. These bonds were listed on June 12, according to a filing with the Singapore Exchange on Tuesday (11 June).
On the same day, June 11, iFast repurchased 31,300 shares in the open market for S$216,747, as stated in a filing with the Singapore Exchange. The company is authorized to buy back up to approximately 29.8 million shares and has so far repurchased 109,400 shares.
5. $YZJ Shipbldg SGD(BS6.SI)$
According to the Wall Street Journal, YZJ Shipbldg SGD's order wins remain strong, as highlighted by UOB Kay Hian analyst Adrian Loh in a research report.
The Singapore-listed shipbuilder recently announced year-to-date order wins totaling US$3.32 billion as of May 24, achieving 74% of its 2024 target. Given this strong performance, the brokerage has raised its 2024 order-win expectation for the company from US$5 billion to US$7 billion.
YZJ Shipbldg SGD currently holds orders for 35 liquefied natural gas dual-fuel container ships and 15 methanol dual-fuel container ships. The analyst believes the company is well-positioned to secure additional orders for similar vessels.
As for the stock's target price, the brokerage has increased it from S$2.19 to S$2.86, maintaining an unchanged "buy" rating.
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