Berkshire Hathaway Solid Gains in Q3 | 07 November 2022 | Daily Morning Note

The Daily Morning Note is a round-up of local and global business headlines that you need to know to get ahead of your day.

Berkshire Hathaway on Saturday posted a solid gain in operating profits during the third quarter despite rising recession fears, while Warren Buffett kept buying back his stock at a modest pace.

#PhillipCapital #YourPartnerinFinance #Servingyousince1975  #fintech #PYTCH #PYTCHMedia #DailyMorningNote #DailyNews #FinanceNews

Key takeaways


Singapore shares picked up the pieces from the previous day’s rout sparked by the Federal Reserve’s half-hearted dovish stance and recovered some ground on Friday (Nov 4) alongside most regional peers. The Straits Times Index (STI) rose 27.60 points or 0.9 per cent to 3,130.11 as traders trawled for value after Thursday’s sell-off and ahead of key US jobs data. It has ended in positive territory four of the five days, with the STI having gained 70.92 points or 2.3 per cent over the week. On the local bourse, some1.65 billion securities worth S$1.26 billion were traded. Gainers outpaced losers, with 347 counters up and 218 down. Gains were held up by banking trio DBS, UOB and OCBC.

Wall Street stocks finished a volatile day sharply higher Friday (Nov 4) following good jobs data that was seen as keeping the pressure on the Federal Reserve to hike interest rates more. Friday’s gains ended a four-day losing streaks for stocks, reducing the week’s losses surrounding the Fed’s latest big interest rate hike. The Dow Jones Industrial Average finished 1.3 per cent higher at 32,403.22. The broad-based S&P 500gained 1.4 per cent to 3,770.55, while the tech-rich Nasdaq Composite Index advanced 1.3 per cent to 10,475.25. Among individual companies, Starbucks shot up nearly nine per cent after reporting better-than-expected profits despite a hit from a drop in China sales. DoorDash was another big winner, rising more than eight per cent following a jump in revenues that showed consumer remain unperturbed by inflation.

Singapore News

Singapore Airlines announced record operating profits for both its second quarter and first half financial year ending Mar 31, 2023. The outsized performance was driven by high demand for air travel during the peak summer season across all route regions, except East Asia. This resulted in a Q2 FY2023 operating profit of S$678 million, up 21.9 per cent from S$556 million in the previous quarter. It was the highest quarterly operating profit in SIA’s history. Second quarter net profit surged 50.5 per cent to S$557 million from S$370 million in the previous quarter.

AEM Holdings reported a 41 per cent jump in Q3 2022 revenue to S$206 million, from S$146 million a year prior, in a bourse filing on Friday(Nov 4). Net profit for the quarter grew in tandem, up 38.3 per cent to S$32.2million, from S$23.3 million in the previous year. The topline and bottomline growth were driven by a ramp-up in volume from new and existing customers of AEM’s systems-level testing handlers and peripheral tools.

Venture Corporation reported a 24.9 per cent jump in its net profit to S$271.1 million for the first nine months of 2022, on the back of broad-based and diversified growth, the group announced in a bourse filing on Friday (Nov 4). Earnings per share were up 25.1 per cent at S$0.932, fromS$0.745 in the previous corresponding period.

US News

Nonfarm payrolls report for October showed the world's largest economy created more new jobs than expected, but also flashed signs of a slowdown with a higher unemployment rate and lower wage inflation. Nonfarm Payrolls in the US rose by 261,000 in October, the data published by the US Bureau of Labor Statistics revealed on Friday.

Oil prices settled up by more than 5 per cent on Friday (Nov 4) amid uncertainty around future interest rate hikes by the US Federal Reserve, while a looming EU ban on Russian oil and the possibility of China easing some Covid restrictions supported markets. Though fears of global recession capped gains, Brent crude futures settled up US$3.99 to US$98.57 per barrel, a weekly gain of 2.9 per cent. US West Texas Intermediate (WTI) crude futures were up US$2.96, or 5 per cent, at US$92.61, a 4.7 per cent weekly gain.

Berkshire Hathaway on Saturday posted a solid gain in operating profits during the third quarter despite rising recession fears, while Warren Buffett kept buying back his stock at a modest pace. The Omaha-based conglomerate’s operating earnings — which encompass profits made from the myriad of businesses owned by the conglomeratelike insurance, railroads and utilities — totalled $7.761 billion in the third quarter, up 20% from year-earlier period.

In our recommendation section,

our analyst Glenn Thum maintains his Buy Recommendation OCBC with a target price of  S$14.22.It was last done at S$12.04.

He says “OCBC is our preferred pick among the three banks due to attractive valuations, upside in dividend from the14.4% CET 1 buffer and lower provisioning as the Indonesian and Malaysian economies recover.”

Similar videos