Daily Morning Note – 11 Oct 2019



Major Asian stock markets recovered from earlier lows to close higher on Thursday as investors watched for developments on the U.S.-China trade front ahead of high-level negotiations between the two economic powerhouses.

US stocks rose on Thursday after President Donald Trump said he will meet with Chinese Vice Premier Liu He on Friday, raising hope the two countries could make progress on the trade front.

Gold prices fell from a one-week high on Thursday after a Chinese state media report suggested that China wants to reach an agreement with the United States to avoid any escalation in a protracted trade row, soothing investor concerns.

Oil prices rose on Thursday as OPEC indicated that all options were on the table to balance oil markets and that it would take a decision in December on supply for next year.

Source: CNBC


The UK is proposing a “pared-down” free trade agreement to make a deal done by the end of October, Sky news reported on Thursday, citing sources. Prime Minister Boris Johnson pitched the offer, which focuses on a more limited free trade (FTA), to Irish Prime Minister Leo Varadkar during talks on Thursday, the report said.

HOME appliance giant Dyson has scrapped its entire automotive division, including its plan for an electric car plant in Singapore, the British firm announced on Thursday.

DENTAL Group Q&M has agreed to sell a 36 per cent stake in its associate Aidite (Qinhuangdao) Technology for net proceeds of S$49 million, the Catalist-listed company announced in a bourse filing on Thursday.

CRUSHED limestone producer GCCP Resources has entered a non-binding Memorandum of Understanding (MoU) to fully acquire an Indonesian palm oil producer for S$220.3 million, resulting in a reverse takeover (RTO) of the Catalist-listed firm.

THE Singapore Exchange (SGX) has queried Catalist-listed Capital World on the sustainability of entering a cycle of loans with increasing interest rates and high arranger fees.

RETAIL landlord SPH Reit on Thursday reported a 2.1 per cent rise in distribution per unit (DPU) to 1.46 Singapore cents for the fourth quarter ended Aug 31, up from 1.43 cents a year ago.

LAW Kung Ying, the chief executive of Mainboard-listed Cheung Woh Technologies, will retire from the top job on Feb 28, 2020 due to health reasons. He will be replaced by his brother Law Kung Ming

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


Galaxy Entertainment Group Ltd

Recommended Action: Technical BUY

Galaxy Entertainment Group (HK: 27) will enter into a bullish rebound based on the technical.

Haitong Securities Co Ltd

Recommended Action: Technical BUY

Haitong Securities (HK: 27) is expected to enter into a bullish rebound based on the technical.

Read more technical pulse


Phillip Singapore Strategy – Low and slow

Analyst: Paul Chew

– We are expecting low (interest rates) and slow (economic growth) 4Q19. But no recession.
– No push factors for a meaningful trade truce but global manufacturing downturn look extended compared to past cycles.
– Our Phillip Absolute 10 model portfolio outperformed the STI in 3Q19. New inclusions are Venture Corp and PropNex.

Read more research reports

Webinar Of The Week

Market Outlook: : (PSR) Singapore Exchange Limited, Singapore Banking Monthly, First REIT, US Weekly, Technical Analysis & Singapore weekly

Date: 07 October 2019

For more on Market Outlook

Phillip Research in 3 minutes: #14- Singapore Banking Sector

Updates summarised in 3 minutes

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

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