Daily Morning Note – 11 February 2020



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.

Read more technical reports


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.

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Market Outlook: (PSR) Singapore Weekly & Technicals

Date: 20 January 2020

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