Daily Morning Note – 04 May 2018
WEEKLY MARKET OUTLOOK WEBINAR
Register HERE for MONDAY’s 11.15am webinar if you have not already done so.
Archived webinars available.
United Overseas Bank Ltd – Better margins and provisions drove growth
Recommendation: ACCUMULATE (Downgraded), Last Close Price: S$29.58
Target Price: S$31.70 , Analyst: Phillip Research Team
– 1Q18 PATMI exceeded our estimates by 10% due to lower than expected
– NIM, lower impairments and fee were the key earnings drivers
– Expect special and higher ordinary dividends as CET 1 surged to 14.9%, against
13% comfort level
– We raised our target price to S$31.70 (previously S$29.00) on a higher ROE and
earnings. Nevertheless, our rating has been downgraded to ACCUMULATE due to
the share price performance.
Hi-P Ltd – Daily timeframe – Bullish
– At the end of the 03/05/18, price closed at the daily high at 1.57 resulting in the
formation of a bullish candlestick pattern, hammer with increasing volume signals
a possible reversal higher.
– With the current hammer rejection off the 1.50 psychological round number and
oversold RSI, a near-term bottom at 1.45 might be forming as the bulls target the
1.79 resistance area next followed by 1.86.
For more information and additional disclosures, refer to the link here.
U.S. stocks ended lower on Thursday. The Dow Jones Industrial Average was up marginally 0.02% to 23,930.83, the S&P 500 lost 0.22% to 2,629.74, and the Nasdaq Composite dropped 0.18% to 7,088.15.
Trade was in focus as a U.S. delegation begins negotiations with their Chinese counterparts on Thursday and Friday in Beijing. Treasury Secretary Steve Mnuchin, Commerce Secretary Wilbur Ross and Trade Representative Robert Lighthizer are among the U.S. officials participating in the meeting.
The U.S. trade deficit narrowed sharply in March as exports increased to a record high amid a surge in deliveries of commercial aircraft and soybeans. The trade gap dropped 15.2% to US$49bn, the lowest level since September. March’s decline ended six straight monthly increases in the trade deficit.
U.S. factory goods orders rose 1.6%, more than expected in March, boosted by strong demand for transportation equipment and a range of other products, but there are signs that business spending on equipment is slowing.
U.S. has raised concerns with China about its latest militarization of the South China Sea and there will be near-term and long-term consequences.
Xiaomi filed an initial public offering application in Hong Kong. Reports have suggested it could become the largest listing by a Chinese tech company in nearly four years. The Wall Street Journal, citing a source familiar with the matter, reported that Xiaomi was looking to raise at least $10 billion that could value the company at around $100 billion.
Artivision Technologies is entering into a reverse takeover deal to give up a 70% stake in the company in exchange for e-payment and online retail business, Mobile Credit Payment (MC Payment).
Nippecraft has received an in-principal approval from the Singapore Exchange to transfer the company’s listing from the SGX mainboard to the Catalist board.
Nordic Group has secured about S$6.1mn of contracts due to be completed between the second quarter of 2018 and the end of 2020.
MyRepublic will now be a mobile virtual network operator (MVNO), through a freshly inked partnership with StarHub.
OUE Lippo Healthcare expects to report a net loss for the first quarter ended March 31. The loss is attributable mainly to operating costs.
Source: Bloomberg, Channel NewsAsia, The Business Times, SGX Masnet, Reuters, PSR
Clients of Phillip Securities can keep updated with Country Strategy and Singapore Sector Reports by logging into: www.poems.com.sg > STOCKS > Research
|The information contained in this email and/or its attachment(s) is provided to you for information only and is not intended to or nor will it create/induce the creation of any binding legal relations. The information or opinions provided in this email do not constitute an investment advice, an offer or solicitation to subscribe for, purchase or sell the e investment product(s) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of this information. Investments are subject to investment risks including possible loss of the principal amount invested. The value of the product and the income from them may fall as well as rise. You may wish to seek advice from an independent financial adviser before making a commitment to purchase or investing in the investment product(s) mentioned herein. In the event that you choose not to do so, you should consider whether the investment product(s) mentioned herein is suitable for you. PhillipCapital and any of its members will not, in any event, be liable to you for any direct/indirect or any other damages of any kind arising from or in connection with your reliance on any information in and/or materials attached to this email. The information and/or materials provided “as is” without warranty of any kind, either express or implied. In particular, no warranty regarding accuracy or fitness for a purpose is given in connection with such information and materials.|
|This e-mail and its attachment(s) may contain privileged or confidential information, which is intended only for the use of the recipient(s) named above. If you have received this message in error, please notify the sender immediately and delete all copies of it. If you are not the intended recipient, you must not read, use, copy, store, disseminate and/or disclose to any person this email and any of its attachment(s). PhillipCapital and its members will not accept legal responsibility for the contents of this message. Thank you for your cooperation.|