Daily Morning Note – 11 June 2020
PHILLIP SUMMARY
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.
BREAKING NEWS
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
TECHNICAL PULSE
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
RESEARCH VIDEOS
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
Phillip Research in 3 minutes: #22- Singapore Banking Sector
For more videos on Phillip in 3 Mins
| 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 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. |
