Daily Morning Note – 08 June 2018
WEEKLY MARKET OUTLOOK WEBINAR
Register HERE for MONDAY’s 11.15am webinar.
Archived webinars available.
RESEARCH REPORTS
Land Transport Sector – Industry restructuring and levelling the playing field for Taxis
Recommendation: OVERWEIGHT (Maintained), Analyst: Richard Leow
– Taxi population still contracting, and rental cars YoY growth continues to
moderate
– Deadline for attending training and passing the test approaching, yet 40% of
drivers have not attained their PDVLs
– Maintain Overweight on the Land Transport Sector, on the positive industry
restructuring and regulatory action coming into effect which levels the playing
field
– Maintain Accumulate on ComfortDelGro; higher target price of $2.69
(previously $2.48)
ComfortDelGro Corp Ltd – Demand for Taxis is returning
Recommendation: Accumulate (Maintained)
Last Close Price: $2.46
Target Price: $2.69 (previously $2.48)
Analyst: Richard Leow
– The worst appears to be over for Taxi business, signalled by growth in
bookings and capex for new hybrid taxis
– Termination of strategic agreement with Uber’s LCR
– Outlook for Rail is positive, with narrowing of DTL losses driven by ridership
growth
– Maintain Accumulate; higher target price of $2.69 (previously $2.48)
TECHNICAL PULSE
Haw Par Ltd – Daily timeframe – Bullish
– The bullish follow through since 30/05/18 succeeded in breaking price above
the downtrend line and 20 day moving average on 05/06/18 signals the
resumption of the uptrend.
– Expect price to head higher next to test the 14.00 resistance area followed by
14.20. The 30/05/18 low of 12.82 should be the next higher low (HL) point for
this uptrend.
For more information and additional disclosures, refer to the link here.
BREAKING NEWS
The Dow Jones Industrial Average DJIA, +0.38% rose 95 points, or 0.4%, to 25,241.41, with about two-thirds of the blue-chip companies finishing higher. The S&P 500 SPX, -0.07% ended 1.98 points, or 0.1%, lower at 2,770.37, breaking a four-day winning streak. The Nasdaq Composite Index COMP, -0.70% which briefly traded in positive territory and set an all-time high, sank 54.17 points to 7,635, a decline of 0.7%.
US weekly jobless claims drop as labour market picks up steam. Initial claims for state unemployment benefits fell 1,000 to a seasonally adjusted 222,000 for the week ended June 2, the Labor Department said on Thursday. Economists polled by Reuters had forecast claims rising to 225,000 in the latest week.
US reaches deal with China’s ZTE that includes US$1b fine. Under the deal, ZTE will change its board and management within 30 days, pay a US$1 billion fine, put US$400 million in escrow and retain a new US-selected compliance team
Brent crude futures settled up $1.96 a barrel, or 2.6 percent at $77.32. U.S. West Texas Intermediate (WTI) crude rose $1.22, or 1.88 percent to $65.95 a barrel. Crude prices got an early lift on concerns about exports from Venezuela. Gains grew when Algeria’s oil minister indicated OPEC would focus on balancing the market rather than on rolling back production caps.
SembMarine to buy Sevan Marine’s intellectual property in US$28m deal to end legal dispute. The litigation between SCM Group and Sevan Marine in the US courts over the infringement of intellectual property rights of SCM Group will be terminated subject to completion.
Wilmar, OCBC ink deal to peg interest rate on US$200m loan to sustainability performance. Interests rates on Wilmar’s loan will be reduced on a tiered basis if the company achieves its pre-set sustainability targets, which are based off environmental, social and governance (ESG) metrics.
Citic Envirotech secures 1b yuan environmental project in Anyang City. To undertake the project, Citic and its partner in the project – Fengzhu Textile Technology – will set up a project company with shareholdings of 90 per cent and 10 per cent respectively.
Source: SGX Masnet, Bloomberg, Channel NewsAsia, Reuters, The Business Times, PSR
Clients of Phillip Securities can keep updated with Country Strategy and Singapore Sector Reports by logging into: www.poems.com.sg > STOCKS > Research
| Disclaimer |
| 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. |
| Confidentiality Note |
| 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. |
