Daily Morning Note – 11 April 2018

WEEKLY MARKET OUTLOOK WEBINAR

Register HERE for MONDAY’s 11.15am webinar if you have not already done so.

Archived webinars available.

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

Important Information

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.

 

Contact us to Open an Account

Need Assistance? Share your Details and we’ll get back to you

IMPORTANT INFORMATION

This material is provided by Phillip Capital Management (S) Ltd (“PCM”) for general information only and does not constitute a recommendation, an offer to sell, or a solicitation of any offer to invest in any of the exchange-traded fund (“ETF”) or the unit trust (“Products”) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. You should read the Prospectus and the accompanying Product Highlights Sheet (“PHS”) for key features, key risks and other important information of the Products and obtain advice from a financial adviser (“FA“) pursuant to a separate engagement before making a commitment to invest in the Products. In the event that you choose not to obtain advice from a FA, you should assess whether the Products are suitable for you before proceeding to invest. A copy of the Prospectus and PHS are available from PCM, any of its Participating Dealers (“PDs“) for the ETF, or any of its authorised distributors for the unit trust managed by PCM.  

An ETF is not like a typical unit trust as the units of the ETF (the “Units“) are to be listed and traded like any share on the Singapore Exchange Securities Trading Limited (“SGX-ST”). Listing on the SGX-ST does not guarantee a liquid market for the Units which may be traded at prices above or below its NAV or may be suspended or delisted. Investors may buy or sell the Units on SGX-ST when it is listed. Investors cannot create or redeem Units directly with PCM and have no rights to request PCM to redeem or purchase their Units. Creation and redemption of Units are through PDs if investors are clients of the PDs, who have no obligation to agree to create or redeem Units on behalf of any investor and may impose terms and conditions in connection with such creation or redemption orders. Please refer to the Prospectus of the ETF for more details.  

Investments are subject to investment risks including the possible loss of the principal amount invested. The purchase of a unit in a fund is not the same as placing your money on deposit with a bank or deposit-taking company. There is no guarantee as to the amount of capital invested or return received. The value of the units and the income accruing to the units may fall or rise. Past performance is not necessarily indicative of the future or likely performance of the Products. There can be no assurance that investment objectives will be achieved.  

Where applicable, fund(s) may invest in financial derivatives and/or participate in securities lending and repurchase transactions for the purpose of hedging and/or efficient portfolio management, subject to the relevant regulatory requirements. PCM reserves the discretion to determine if currency exposure should be hedged actively, passively or not at all, in the best interest of the Products.  

The regular dividend distributions, out of either income and/or capital, are not guaranteed and subject to PCM’s discretion. Past payout yields and payments do not represent future payout yields and payments. Such dividend distributions will reduce the available capital for reinvestment and may result in an immediate decrease in the net asset value (“NAV”) of the Products. Please refer to <www.phillipfunds.com> for more information in relation to the dividend distributions.  

The information provided herein may be obtained or compiled from public and/or third party sources that PCM has no reason to believe are unreliable. Any opinion or view herein is an expression of belief of the individual author or the indicated source (as applicable) only. PCM makes no representation or warranty that such information is accurate, complete, verified or should be relied upon as such. The information does not constitute, and should not be used as a substitute for tax, legal or investment advice.  

The information herein are not for any person in any jurisdiction or country where such distribution or availability for use would contravene any applicable law or regulation or would subject PCM to any registration or licensing requirement in such jurisdiction or country. The Products is not offered to U.S. Persons. PhillipCapital Group of Companies, including PCM, their affiliates and/or their officers, directors and/or employees may own or have positions in the Products. Any member of the PhillipCapital Group of Companies may have acted upon or used the information, analyses and opinions herein before they have been published. 

This advertisement has not been reviewed by the Monetary Authority of Singapore.  

 

Phillip Capital Management (S) Ltd (Co. Reg. No. 199905233W)  
250 North Bridge Road #06-00, Raffles City Tower ,Singapore 179101 
Tel: (65) 6230 8133 Fax: (65) 65383066 www.phillipfunds.com