Stock calls for 25 July 2023

Date	Analyst	Company	Last	Target	Call	Valuation
07/25/23	Kim Eng	CSE Global	0.445	0.62	Buy
07/25/23	CLSA	Genting	0.93	1.26	Buy
07/25/23	DBS Vickers	Keppel DC Reit	2.27	2.45	Buy	DCF
07/25/23	Lim & Tan	Keppel DC Reit	2.27	2.24	Neutral
07/25/23	Citi Research	Keppel DC Reit	2.27	2.16	Neutral
07/25/23	UOB Kay Hian	Rex	0.18	0.1	Sell
07/25/23	UOB Kay Hian	RH Petrogas	0.205	0.25	Buy	Sum of parts

Koda - Stock calls

Date	Analyst	Company	Last	Target	Call	Valuation
09/05/22	Phillip	Koda	0.5	0.5	Neutral	PER5x FY23, Ex-cash
09/05/22	SAC Capital	Koda	0.5	0.64	Buy

Kimly - Stock calls

Date	Analyst	Company	Last	Target	Call	Valuation
09/12/22	Lim & Tan	Kimly	0.355	0.44	Buy
09/12/22	CIMB	Kimly	0.355	0.41	Hold	PER15.4x FY23
11/25/22	CIMB	Kimly	0.35	0.39	Hold
12/12/22	UOB Kay Hian	Kimly	0.345	0.36	Hold	PER12.7x FY23
02/07/23	DMG & Partners	Kimly	0.35	0.4	Buy	DCF (12% disc)
05/31/23	UOB Kay Hian	Kimly	0.34	0.36	Hold	PER12.5x FY23

Kim Heng - Stock calls

Date	Analyst	Company	Last	Target	Call	Valuation
09/20/22	SAC Capital	Kim Heng	0.086	0.1016	Hold	DCF

Stock calls for 24 July 2023

Date	Analyst	Company	Last	Target	Call	Valuation
07/24/23	CIMB	Aztech	0.7	1.11	Add
07/24/23	Lim & Tan	Aztech	0.7	1	Accumulate
07/24/23	Kim Eng	Aztech	0.7	0.93	Buy	PER8x FY23
07/24/23	DMG & Partners	Bumitama	0.58	0.61	Neutral	PER8x FY24
07/24/23	CIMB	Far East Hospitality	0.64	0.77	Add	DDM
07/24/23	DMG & Partners	First Resources	1.48	1.4	Neutral	PER10x FY24
07/24/23	DMG & Partners	Golden Agri	0.24	0.29	Buy	Sum of parts
07/24/23	CIMB	Keppel Corp	6.79	8.7	Add	Sum of parts
07/24/23	UOB Kay Hian	Mapletree Commercial	1.65	1.9	Buy	DDM
07/24/23	DMG & Partners	Venture	14.6	18.26	Buy	PER16x FY23
07/24/23	DMG & Partners	Wilmar	3.75	4.65	Buy	Sum of parts

The US Fed is certain to raise its rates by 25bp this July!

The Fedwatch tool is showing an almost 100% probability to raise its rates by 25bp this July.

How is the US financial system doing?

Let's take a look at the FED funds.

The Fed is holding close to US$8.3T assets now but this amount is down from a peak of US$8.9T.

Let's take a look at the Fed balance sheet breakdown.

The US treasury department has accumulated slightly more than US$530B cash by issuing US treasuries so that it can fund its operations.  From another financial perspective, the US treasury department is draining money from the US financial system as the public money flows into the government account.

However, the reduction in the US money supply is still insignificant as there is excessive money in the financial system that is shown in the reverse repo market.

There is still an excessive US$1.77T liquidity in the financial system that the banks can't deploy to other investment opportunities except to park the funds in the reverse repo market.

Thus, our conclusion is that the Fed will continue to drain the monetary liquidity in the financial system by selling down its US$8.3T assets and issuing more debts to fund its social and security programmes.  Last but not least, we do not see any liquidity risk in the US yet.

Baltic dry index - 978

Related stock: Sembcorp Marine, Cosco & Pan Ocean.

US rig count (weekly) - 669

Related stock: Sembcorp Marine & Cosco.