The Dow jumped while the Nasdaq slumped on Monday as investors continued to bet on a strong recovery in industrial and travel companies and other likely winners of the post-coronavirus economy. After surging to all-time records during the session, the Dow Jones Industrial Average pulled back somewhat, but still finished up 1.0 per cent at 31,802.44. But the tech-rich Nasdaq Composite Index tumbled 2.4 per cent to 12,609.16, while the broad-based S&P 500 declined 0.5 per cent to 3,821.35. "Investors are still rotating out of tech and into economically sensitive cyclicals," said Art Hogan, chief market strategist at National Securities, adding that Monday's session was like a "microcosm" of last week's trading action. Factors boosting stocks include progress on President Joe Biden's US$1.9 trillion stimulus package and increasing momentum behind coronavirus vaccines.

SG

Jardine Matheson Holdings (SGX: J36) announced on Monday it will simplify the parent company structure of the group by acquiring the 15 per cent of Jardine Strategic Holdings (SGX:J37)it does not already own. The acquisition is valued at approximately US$5.5 billion. Upon completion, Jardine Matheson will be the single holding company for all its Jardine subsidiaries, a move which the group said will result in a " conventional ownership structure and a further increase in the group's operational efficiency and financial flexibility". Jardine Strategic shareholders will be entitled to receive US$33 for each share that they own. The acquisition is expected to become effective by the end of April 2021.

Frasers Property's (SGX:TQ5) S$1.28b rights issue to build resilience. The main goals of Frasers Property's S$1.18-per-share rights issue, set to raise up to S$1.28 billion, are to boost its business resilience through continued exposure to industrial, logistics and business park assets, build financial agility and strengthen its balance sheet for flexibility. The equity fundraising exercise "is really not meant to address just the free float", as "there are many other things we're looking to address", said Uten Lohachitpitaks, group chief investment officer, during a virtual briefing on Monday evening.

The period of judicial management for both Hiap Seng Engineering (SGX:510) and its subsidiary has been extended another six months to Sept 14. Both their applications to extend the judicial management order were granted by the High Court on Monday. Last October, Hiap Seng Engineering's subsidiary, Hiap Seng Engineering (Thailand) Co, entered into a conditional sale and purchase for the disposal of its office building and factory, as well as various furniture, office equipment and machinery, for 300 million Thai baht (about S$13.3 million).

It's the end of passage for collapsed oil trader Hin Leong Trading (HLT) after the Singapore High Court on Monday granted an order to wind up the debt-roiled firm that was brought to its knees by last year's oil slump amid the spectre of fraud allegations. This follows an over two-hour long hearing via Zoom before High Court Justice Kannan Ramesh on an application filed last month by HLT's judicial managers (JM) to wind up what was once an iconic oil empire founded by Singapore tycoon Lim Oon Kuin after a hunt over several months for potential investors to save the group failed.

US

Treasury Secretary Janet Yellen dismissed fears that President Joe Biden's US$1.9 trillion pandemic-relief package is so big that it will cause an inflation problem. "I really don't think that's going to happen," Ms Yellen said in an interview with MSNBC Monday, when asked about concerns that consumer-price pressures could surge as a result of deploying the stimulus despite the economy already gathering pace. Inflation before the pandemic "was too low rather than too high," she noted. House Speaker Nancy Pelosi predicted her chamber would approve the stimulus package on Tuesday, following Saturday's passage in the Senate. Treasury yields have soared over the past month as investors built into their outlook a faster trajectory for economic growth and prices in the wake of the bigger-than-expected spending Bill.

US dollar hit a 3½-month high on Monday as rising US Treasury yields spooked investors and boosted the greenback's safe-haven appeal. After falling 4 per cent in the last quarter of 2020, the US dollar has strengthened by nearly 2.5 per cent year to date. This is as investors expect the broad rise in US bond yields to weigh on stretched equity valuations and boost demand for the US currency. Recent economic figures are also supportive with US data showing that non-farm payrolls surged by 379,000 jobs last month, while the US Senate approved President Joe Biden's US$1.9 trillion recovery package.

PayPal Holdings (US:PYPL) said it will acquire the cryptocurrency firm Curv as it seeks to beef up its talent pool for handling digital currencies. PayPal, which didn't disclose financial terms of the deal, has been building out a new unit dedicated to furthering its efforts in cryptocurrencies after it began allowing consumers to buy, sell and hold certain digital currencies in its wallet in recent months. Curv, with about 40 employees, will join that team, the payments giant said Monday in a statement.

McAfee Corp (US: MCFE) said on Monday it would sell its enterprise business to a consortium led by Symphony Technology Group for US$4 billion in cash, sending the cybersecurity firm's shares up nearly 3 per cent in premarket trade. The deal, subject to customary regulatory approvals and closing conditions, is expected to close by the end this year, McAfee said. In the last few years, McAfee has strengthened its main cybersecurity software business that focuses on retail customers via price increases, new partner programs and good retention rates. Its enterprise business recorded US$1.3 billion in net revenue in fiscal year 2020, McAfee said.

Source: SGX Masnet, The Business Times, Bloomberg, Channel NewsAsia, Reuters, PSR