Daily Morning Note – 11 April 2018

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RESEARCH REPORT

Phillip Singapore Monthly – April 2018: That two-legged tail risk
Analyst: Paul Chew
– The US administration slapped tariffs on $50bn worth of Chinese imports, mainly
in machinery and equipment.
– Fed raised interest rates by 25bps to no surprise. Curiously, the inflation forecast
was only raised marginally to 2.1%
– In Singapore, banks will provide support with their earnings with expectation of
significantly better NIMs from YoY rises in both the SIBOR (+38%) and SOR (+55%)
this quarter
– Property sales in Singapore are resilient. Take-up in a recent residential launch by
CDL was strong, at almost 40% over a weekend

TECHNICAL PULSE

Hi-P Ltd – Daily timeframe – Bullish
– The recent rebound higher especially on 10/04/18 succeeded in lifting the RSI
back above the 30 oversold region signals the start of the mean reversion back
into the uptrend.
– With the recent bullish price action, expect price to head back into the uptrend
next to retest the 2.38 resistance area followed by 2.65.

For more information and additional disclosures, refer to the link here.

BREAKING NEWS

Wall Street stocks finished solidly higher on Tuesday amid easing of US-China trade tensions, while Facebook surged as the company’s chief apologized to Congress over a data breach scandal.

Major global central banks are ramping up purchases of euro zone government bonds, banking sources say, enticed by rising yields, a buoyant single currency and an uncertain outlook for US debt and the dollar.

Indonesia’s Lion Air is buying 50 Boeing 737 MAX 10 airplanes in a deal valued at about US$6.2 billion, the firms said Tuesday, as the carrier looks to cash in on a transport boom in the Southeast Asian nation.

US producer prices increased more than expected in March, boosted by a rise in the cost of services such as healthcare and airline fees, pointing to a steady buildup of wholesale inflation pressures. The Labor Department said on Tuesday its producer price index for final demand rose 0.3 per cent last month after increasing 0.2 per cent in February.

MIDAS Holdings – which is under investigation by Singapore authorities – on Tuesday said the Commercial Affairs Department (CAD) has ordered the company to hand over financial documents, and a list of certain staff.

Facebook Inc shares posted their biggest daily gain in nearly two years on Tuesday as Chief Executive Mark Zuckerberg fended off questions from U.S. senators on how the world’s largest social network might be regulated more closely.

Singapore Press Holdings (SPH) on Tuesday reported a near 25 per cent year-on-year fall in net profit to around S$40.19 million for the second quarter ended Feb 28, 2018, weighed down by lower investment income.

FRASERS Hospitality will open a hotel residence at China Square Central in the first quarter of 2019 under its Capri brand, to serve what it sees as a growing group of young business travellers worldwide.

ComfortDelGro Corporation Limited will acquire the private bus chartering assets of AZ Bus Pte Ltd for $10.25 million, in a move which will further strengthen its position as Singapore’s largest private bus charter operator.

Source: SGX Masnet, The Business Times, Phillip Securities Research

Clients of Phillip Securities can keep updated with Country Strategy and Singapore Sector Reports by logging into: www.poems.com.sg > STOCKS > Research

Read the research report(s), available through the link(s) above, for complete information including important disclosures

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