Daily Morning Note – 12 July 2019

WEEKLY MARKET OUTLOOK WEBINAR

Register HERE for MONDAY’s 11.15am webinar.

Archived webinars available.

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.

Read more technical pulse

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

For more on Market Outlook

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





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 “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.