Daily Morning Note – 11 February 2020
WEEKLY MARKET OUTLOOK WEBINAR
Asian equities are poised to open higher Tuesday after U.S. stocks hit a record high as investors looked past the potential economic impact of the spreading coronavirus. Treasuries rose.
Australian shares climbed at the open and futures pointed to gains in Hong Kong. Japanese financial markets are shut for a holiday. U.S. equity futures were little changed in early Asian trading after the S&P 500 Index climbed to a new high Monday, with most sectors advancing. The Chinese yuan traded offshore maintained gains, while the yen was little changed.
ENERGY and utilities group Sembcorp Industries has bagged the project to build a floating solar farm on Tengeh Reservoir, with wholly-owned subsidiary Sembcorp Solar Singapore coming in as the preferred bidder, it announced on Monday.
FRASERS Property on Monday announced that Frasers Property Retail has agreed to acquire property manager AsiaMalls Management for an undisclosed sum.
LENDLEASE Global Commercial Reit (Lendlease Global Reit) on Monday reported a distribution per unit (DPU) of 1.29 Singapore cents for its second quarter, from its listing date Oct 2 to Dec 31.
FIBRE broadband operator NetLink NBN Trust saw third-quarter earnings lifted by rising home broadband connections, according to unaudited results released on Monday.
AGRI-FOOD giant Olam International expects to record a net one-time post-tax gain of about S$72 million for its fourth quarter ended Dec 31.
Source: SGX Masnet, The Business Times, Bloomberg, Channel NewsAsia, Reuters, PSR
Technical Analysis: Singapore Air Transport Sector Risk
– Majority of the stocks listed on the Singapore Exchange have taken a hit due to the Coronavirus outbreak in Wuhan and the situation is likely to persist.
– The transportation and tourism sectors will be the most affected.
– The transportation sector will continue experiencing downside risks even after the outbreak has subsided.
– Stocks in the limelight will be Singapore Airlines and SATS, as both stocks have global exposure.
– Bullish rebound at a lower level is possible but the technicals suggest that the rebound may be short-lived.
Singapore REITs Monthly – Monthly Tracker: February 2020
Recommendation: NEUTRAL (Maintained), Analyst: Natalie Ong
– FTSE S-REIT Index gained +4.0% MTD and +4.1% YTD. Strongest gains were from the healthcare sub-sector (+6.1%) and weakest showing at the hospitality sub-sector (-3.5%).
– Performance in August: Best performer – Ascendas REIT (+10.4%), Worst performer – Far East Hospitality Trust (-10.0%).
– Sector yield spread of 248bps over the benchmark 10-year SGS (10YSGS) yield was at the -1.5 standard deviation (SD) level.
– 3M SOR inched up 10bps MoM, to end at 1.62%, which was 36bps lower YoY Remain NEUTRAL on S-REITs sector. Sub-sector preferences: Office and Industrial.
Webinar Of The Week
Market Outlook: (PSR) Singapore Weekly & Technicals
Date: 20 January 2020
Phillip Research in 3 minutes: #17 – IREIT Global; Initiation
|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 揳s 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.|