Daily Morning Note – 11 Sep 2019
WEEKLY MARKET OUTLOOK WEBINAR
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PHILLIP SUMMARY
Stocks ended the day little changed on Tuesday, weighed down by a continuing decline in tech shares while Ford was pressured by a downgrade to its credit rating.
The S&P 500 closed just above the flatline at 2,979.39. The Nasdaq Composite closed marginally lower at 8,084.16. The Dow Jones Industrial Average outperformed, rising 73.92 points, or 0.3% to 26,909.43, posting a five-day winning streak.
The S&P 500 tech sector was one of the worst performers on Monday, sliding 0.7%, one day day after the attorneys general of 50 U.S. states announced an investigation into Google’s ‘potential monopolistic behavior.
Investors eyed a potential rotation in market leadership from defensive names and fast-growing tech stocks into cyclical sectors, including energy, industrials and materials, all of which have posted gains Tuesday, in contrast with the S&P 500.
Meanwhile, concerns about the U.S.-China trade battle appear to have moved to the back burner for investors after being blamed for volatile market action in August.
BREAKING NEWS
China on Tuesday removed limits on foreign institutions wanting to invest in its stocks and bond markets, as it seeks to attract overseas investment amid a slowing economy and a trade spat with the United States.
Singapore – From Wednesday (Sept 11), more first-time buyers will get higher grants and more flexibility to choose the size of their flat and where it is located. The income ceiling for eligible buyers has also been raised for the first time since 2015.
Apple unveiled its iPhone 11 models Tuesday with a price cut for the most basic models while also laying out plans for streaming and gaming services as it bids to weather the slump in the global smartphone market.
South-east Asian online realtor PropertyGuru Group, which counts buyout firms TPG Capital and KKR among its backers, is targeting an Australian IPO which could raise up to A$400 million (S$378.5 million) this year, sources with knowledge of the deal told Reuters on Tuesday.
Isetan Singapore and YTL Starhill Global Reit (SGReit) issued statements to the Singapore Exchange after trading hours on Tuesday, clarifying that no deal has been inked yet.
Upstream oil and gas firm KrisEnergy will receive three months of court protection from creditors’ legal action, until Nov 14, while it restructures its debt totalling US$476.8 million, the mainboard-listed company said on Tuesday morning.
Source: The Business Times, The Straits Times
TECHNICAL PULSE
China Mobile Ltd
Recommended Action: Technical SELL
China Mobile Ltd (HK: 941) bearish momentum seems to be halting but based on the technicals below, the stock has huge potential for further downside.
Postal Savings Bank of China Co Ltd
Recommended Action: Technical SELL
Postal Savings Bank of China (HK: 1658) prolong ranging periods is currently entering into a corrective flat wave. Based on the technicals below and wave count, the stock will most likely enter into a bearish phase.
Research Reports
Uni-Asia Group Limited – Positive Property Business in Japan
Analyst: Edmund Xue, Site Visit
– Uni-Asia Group Limited is an alternative investment company. The company offers structured finance, ship charter arrangement, shipping and maritime asset management, real estate investment and other related services.
– Hotel Vista Management – The Japanese government placed targets for tourist arrivals at 40M by 2020, as compared to 31M in 2018.
– Alero small residential projects – Uni-Asia is able to complete 5 to 8 projects on average per year with an average IRR of 20%.
Webinar Of The Week
Market Outlook: : (PSR) Singapore Banking, Clearbridge Health Limited, Micro-Mechanics, Singapore Weekly, US Weekly, China Weekly, Technicals
Date: 09 September 2019
Phillip Research in 3 minutes: #13 – Real Estate Agencies Sector
Updates summarised in 3 minutes
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Clients of Phillip Securities can keep updated with Country Strategy and Singapore Sector Reports by logging into: www.poems.com.sg > STOCKS > Research
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