Daily Morning Note – 1 April 2019
WEEKLY MARKET OUTLOOK WEBINAR
Register HERE for MONDAY’s 11.15am webinar.
Archived webinars available.
YOUR PHILLIP SUMMARY
The Dow Jones Industrial Average DJIA, +0.82% rose 211.22 points, or 0.8%, to 25,928.68, while the S&P 500 index SPX, +0.67% gained 18.96 points to 2,834.40, a rise of 0.7%. The Nasdaq Composite Index COMP, +0.78% advanced 60.16 points, or 0.8%, to 7,729.32. DJIA, +0.82%. The S&P 500 closed out the week with a 1.2% gain, a 1.8% monthly rise and a first-quarter advance of 13.1%, the best quarterly performance since the third quarter of 2009. The Dow notched a 1.5% weekly gain, while eking out a roughly 0.1% gain for March, and an 11.2% charge higher in the first quarter. The Nasdaq, meanwhile, logged a 1.1% weekly rise, while up 2.6% for the month and advancing 16.5% for the first three months of the year. The small-cap Russell 2000 RUT, +0.30% however, put in a 2.3% March drop, trimming its quarterly advance to about 14.2%.
Clearbridge Health Ltd – Rolling up profits centres in healthcare
Recommendation: BUY (Initiation), Last Done: S$0.142
Target Price: S$0.280, Analyst: Phillip Research Team
– Penetrating high-growth in Indonesian and Phillippine healthcare markets
– Acquires asset-light healthcare franchises that yield recurrent revenues and
revitalised through expansion in capacity, network and capabilities
– Initiate with a BUY recommendation and target price of S$0.28. We used a DCF
valuation to capture the full benefits of CBH’s impressive growth trajectory over
the next five years.
Feb home loans shrink for first time since 2006. Mortgages booked in February on a net basis came in at S$203.8 billion, falling from S$204.3 billion in January. From a year ago, housing loans in February continued to grow, but at its slowest yet of 1.2 per cent since BT began compiling bank lending data from 1991. With housing loans making up three quarters of consumer lending, overall consumer loans from a year ago grew at its weakest on BT’s record. Consumer loans grew just 0.5 per cent in February from a year ago, to S$264.96 billion, decelerating from 0.8 per cent year-on-year growth in January.
Hyflux rebuts statements by SM Investments in SGX filing. The troubled water treatment firm said that it did not withhold material information from the Indonesian white knight, and that despite queries posed by the company, SM Investments had not explained how any of the information it has sought to rely on would necessitate a revision of its assessment of the working capital needs of the company. Hyflux also said that SM Investments, in objecting to the global cash settlement figure of S$272 million under the schemes for the first time on 7 March 2019, had sought to rely on information it had been provided more than two months ago on 3 January 2019.
Swiber Holdings signs investment agreement with NY-listed Seaspan, getting up to US$200m shot in the arm. Both Swiber and Seaspan said that in executing the investment agreement, they have modified certain terms previously announced in October 2018 when the parties signed a term sheet. Firstly, an initial investment tranche of US$10 million (previously US$20 million) will be unlocked upon closing in exchange for an 80 per cent shareholding interest in a new holding company to be incorporated into which certain assets of the existing Swiber Group will be transferred.
Investor Perman Hadi to grant US$2 million convertible loan to Resources Prima Group. The convertible loan may be drawn down in tranches by the company following its presentation of a drawdown notice. All usages of the proceeds of the convertible loan must be approved by the directors of the company from time to time, and any expenditure in excess of US$50,000 will require the written consent of the investor. Subject to approval, the company will convert the full amount of the drawn down convertible loan principal of up to US$2 million into ordinary shares at the conversion price of S$0.001 per share and based on the currency exchange rate of US$1 to S$1.3525.
Grab aims to double workforce to 3,000 by 2020. Currently, Grab has 1,500 employees in Singapore, working out of four offices, at Midview City, Marina One, Cecil Street and Guoco Tower. By the end of 2020, it plans to have 3,000 staff in the Republic, all housed in the new headquarters, which will be completed in the fourth quarter of next year. Grab has more than 6,000 employees worldwide, not including its army of drivers, who are independent contractors.
Alliance Healthcare Group eyes Catalist listing in Singapore. Led by executive chairman and CEO Barry Thng, the group consists of four main business segments, namely managed healthcare solutions, GP clinic services, specialist care services and pharmaceutical services. The firm did not disclose the amount to be raised, but proceeds from the deal will go into expanding its network of self-owned GP clinics, specialist care services and medical facilities in Singapore, as well as to pursue growth through acquisitions, joint ventures and strategic alliances.
Source: SGX Masnet, The Business Times, Bloomberg, Channel NewsAsia, 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.|