Daily Morning Note – 12 July 2019
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PHILLIP SUMMARY
Stocks in Asia were subdued in Friday morning trade. Meanwhile, the Dow Jones Industrial Average posted a record close on Wall Street.
The Dow Jones Industrial Average rallied to a record high on Thursday, led by UnitedHealth shares, after testimony by Federal Reserve Chair Jerome Powell this week that signaled easier monetary policy could be implemented later this month.
Source: CNBC
TECHNICAL PULSE
Ascendas REIT
Recommended Action: Technical BUY at Dip
Ascendas’s bullish strength has been better than expected after the share price broke out from the previous high of 3.06 in the last trading day in June 2019.
RESEARCH REPORT
Bank of China – Competitive in Big Four national Banks
Analyst: Zheng Jieyuan
– BOC reported 1Q19 net profit of Rmb51.0bn, +4% YoY. Revenue growth
(+12% YoY) and PPoP growth (+13% YoY) remained robust.
– Deposits growth (+5% QoQ) remained strong, particularly from domestic
deposits (+7% QoQ), which was the highest among the Big 4 national
banks.
– Healthy asset quality, NPL ratio flat QoQ at 1.42%, the NPL coverage ratio
went up 2.65ppt QoQ in 1Q19, to 184.6%.
– NIM contracted 13bps QoQ, due to the rise in deposits amount and
costs.
– Overall, we are positive on BOC. Because of BOC‘s P/E ratio is 4.7 P/B
ratio is 0.54, and dividend yield is 4.88% which is one of the highest
among banks in CSI 300.
BREAKING NEWS
Based on advance estimates, the Singapore economy grew by 0.1% on a year-on-year basis in the second quarter of 2019, slower than the 1.1% growth in the previous quarter.
With immediate effect on Thursday (July 11), there will be two changes to the voluntary delisting rules to listed firms on the SGX. First, offers must be fair and reasonable to the IFA. Second, the offeror and concert parties will be barred from voting on the voluntary exit offer.
Ford Motor Co and Volkswagen AG said on Thursday they are expanding their global alliance announced in January with deals that are expected to involve collaboration on electric and autonomous vehicles.
CapitaLand‘s 99-year leasehold condo One Pearl Bank will be open for booking on July 20, with prices starting from S$970,000 for studio units.
SPH REIT reported a 1.5% increase in its 3Q19 DPU, on the back of contributions from its purchases in Singapore and Australia.
Hyflux’s potential white knight Utico is looking to take an 88 per cent stake in the troubled water treatment firm through S$300 million in equity injection and S$100 million in shareholder’s loan.
Source: SGX Masnet, The Business Times, Bloomberg, Channel NewsAsia, Reuters, PSR
Webinar Of The Week
Market Outlook: (PSR) Ascott, SG Banking / Coal Monthly, US / China / Phillip Singapore Weekly, Technical
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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