Daily Morning Note – 11 June 2020


Stocks in Asia looked set to drop as investors assessed the Federal Reserve’s forecast of a long road to economic recovery and loose monetary policy. Treasuries rose and the dollar extended this month’s slide. Futures were lower in Japan, Hong Kong and Australia. In a volatile session earlier, the S&P 500 closed lower as Jerome Powell suggested the pandemic could inflict longer-lasting damage on the economy, even as the Fed signalled it would keep rates near zero — possibly for years to come.

Treasury 10-year yields sank to as low as 0.72%, while the dollar extended its June slide to 2.5%. The Nasdaq 100 climbed to a record high as Tesla topped $1,000, while gold rose.


Mainboard-listed China Everbright Water has cancelled a proposed 1.2 billion yuan (S$235.5 million) first tranche issuance of medium- term notes in light of “recent volatile conditions” in the Chinese bond market, it said in a bourse filing late Tuesday night. It added that the move was to control financing costs. The company will continue to monitor market conditions and update shareholders in due course, it said.

Wing Tai Properties, the Hong Kong associate of Singapore-listed Wing Tai Holdings, on Wednesday guided for a first-half consolidated loss for the six months ending June 30. In the year-ago period, there was a consolidated profit of HK$245.4 million (S$43.9 million), said Wing Tai Properties in a profit-guidance note. The preliminary estimation was made mainly due to the possibility of an “adverse change” in fair value of the group’s investment properties, and the possibility of an “adverse change” in fair value of financial instruments, said the group.

Property and construction player Chip Eng Seng on Wednesday announced that its subsidiary CES-Precast (CESP) will acquire the remaining unexpired leasehold estate in an industrial building in Tuas. The S$25 million acquisition comes as part of the group’s plans to diversify its businesses amid the Covid-19 fallout. CESP had exercised the option granted by Concrete Innovators to aquire the property at 65 Tech Park Crescent, and has paid a deposit of S$1 million, in addition to the option fee of S$250,000.

Geo Energy Resources announced Wednesday that it has received approval from the Indonesian Government to increase its work plan and budget production quota for its PT Sungai Danau Jaya (SDJ) and PT Tanah Bumbu Resources (TBR) coal mines to 12 million tonnes from 8 million tonnes in 2020. The increase in its production quota is in line with the company’s mining plan schedule, as previously disclosed in its independent qualified person’s report as at Dec 31, 2019.

New private home sales jumped 74.7 per cent to 484 units in May from 277 units in April as stay-home buyers zoomed in onscreen to their dream home, drawn by discounts, low rates, affordability. Despite a full month of circuit breaker amid a relentless barrage of layoff and wage cut news, buyers were not deterred as they picked more affordable homes, according to Christine Sun, OrangeTee & Tie, head of research & consultancy. Including executive condominiums (EC) – a public-private housing hybrid – developers sold 509 units in May, up 73.7 per cent from 293 units in April, said Ms Sun

Source: SGX Masnet, The Business Times, Bloomberg, Channel NewsAsia, Reuters, PSR


Genting Singapore Ltd

Recommended Action: Technical SELL

Genting Singapore (SGX: G13) upside rally has paused since prices broke out of the consolidated range in early June. The upside was limited as the technicals are displaying signs that the bulls are lacking the momentum. The share price is poised to correct downwards

>> Read more technical reports


Webinar Of The Week

Market Outlook: (PSR) Dasin Retail Trust, Penguin International Limited, SingTel, SG Banking Monthly, SG Weekly, SGD Perpetual Bonds, Technicals

Date: 08 June 2020

For more on Market Outlook

Phillip Research in 3 minutes: #22- Singapore Banking Sector

For more videos on Phillip in 3 Mins

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

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.
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


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