Daily Morning Note – 11 March 2019


Register HERE for MONDAY’s 11.15am webinar.

Archived webinars available.


Major stock indexes posted their fifth straight decline Friday, leaving the S&P 500 down 2.2% for the week. The Dow Jones Industrial Average DJIA suffered a weekly fall of 2.2%, while the Nasdaq Composite COMP lost 2.5%. It was the worst week of 2019 for all three gauges. But stocks are still sporting strong gains for the year to date, with the S&P 500 and Dow up more than 9% and the Nasdaq up 11.7%, marking a strong rebound from a sharp end-of-year selloff.

Stocks ended off session lows on Friday, but slumped early after data showed a sharp slowdown in U.S. job creation in February. Earlier, Chinese data showing a 20.7% year-over-year drop in exports in February put pressure on global equities, the latest in a series of downbeat readings from the world’s second-largest economy that have fueled global growth concerns.

The European Central Bank unnerved investors when it slashed its forecasts for eurozone growth, pushed back its guidance on when it expects to begin raising interest rates and introduced fresh stimulus measures, while warning that risks to the economic outlook still were skewed to the downside due to external uncertainties.

Meanwhile, the U.S. and China have yet to reach an agreement that would end a trade battle between the economic superpowers. Stocks had ran up in recent weeks in part on optimism for a deal.


Banyan Tree Holdings Limited – Gathering momentum in management contracts

Recommendation: Accumulate (Maintained); Last Close Price: S$0.58

Target Price: S$0.76; Analyst: Tara Wong

– PATMI met expectations excluding the surge in effective tax due to higher withholding tax
and under provision of taxes in prior years.

– Sizable uptick in property sales from Phuket. Secured a record 28 new hotel management
contracts in 2018, with a pipeline of 53 hotel openings from 2019 to 2022.

– Hotel investments segment took a hit from Thailand underperformance and Seychelles
deconsolidation effect. Decline in forward bookings, dragged down largely by Thailand.

– Long-term growth catalysts remain intact.Focus would be the continued build-up in feebased
income and property sales.

– Maintain ACCUMULATE with adjusted target price of S$0.76 (prev. S$0.73).


US payroll gains plunge to 20,000 as wages top estimates. Nonfarm payrolls increased by 20,000 after an upwardly revised 311,000 gain the prior month, a Labor Department report showed on Friday. The median estimate in a Bloomberg survey called for an increase of 180,000. Average hourly earnings rose a better-than-projected 3.4 per cent from a year earlier, while the jobless rate declined to 3.8 per cent, near a five-decade low.

China has less room for reserve ratio cuts, PBOC’s Yi says. China still has some room to cut the amount of money banks have hold in reserve, but it’s much smaller than in previous years, the People’s Bank of China Governor Yi Gang said. “At China’s current stage of development, a certain level of reserve-requirement ratios is necessary and appropriate,” Mr Yi said at a press conference during the National People’s Congress in Beijing Sunday, without specifying what that level is.

Keppel O&M clinches repeat order for semi rig worth about US$425m from Awilco. The repeat order represents the exercise of an option that Awilco had as part of an earlier US$425 million contract for a similar rig signed in March last year. Awilco has independent options to order up to another two rigs to be exercised in 2020 and 2021.

DLF Holdings in JV to collaborate on marine engineering contract. DLF Holdings, a mechanical and electrical engineering services firm, has entered into a joint venture (JV) agreement with Prosper Environmental & Engineering (PEE) to collaborate on a work order through a JV company.

The sponsor of Singapore-listed ESR-Reit files for HK listing. ESR Cayman, the sponsor of Singapore-listed ESR-Reit, yesterday said that it had on Feb 28 made submissions to the Hong Kong stock exchange operator for a proposed initial public offering (IPO) of its shares to be listed on the exchange. ESR, the largest Asia-Pacific-focused logistics real estate platform, was formed by a merger of Shanghai-based warehousing services firm e-Shang and Singaporean logistics real estate investment firm The Redwood Group in 2016.

Water-treatment firm gets proofs of claims of $3.51b from 73 parties. Hyflux has received proofs of claims from 73 parties amounting to $3.51 billion. Retail investors in Hyflux’s perpetual securities and preference shares have filed proofs for some of the largest claim amounts. Owners of its $500 million, 6 per cent perpetual securities are claiming $540.7 million while owners of its $400 million, 8 per cent preference shares are claiming $429.3 million. Medium-term note-holders are claiming a combined total of $277.7 million.

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

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

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


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