Daily Morning Note – 12 Oct 2020


Asian stocks looked set for a mixed start. The offshore yuan fell in early trading after Chinese policy makers acted to restrain its strength by making it easier to bet against. S&P 500 futures edged lower after the benchmark ended higher last week, with some traders betting lawmakers are moving closer to reaching an agreement on stimulus. Australian shares opened little changed and contracts in Japan were flat. Crude oil declined and gold was steady. S&P 500 futures dipped 0.2% as of 8:21 a.m. in Tokyo. The gauge rose 0.9% on Friday. Futures on Japan’s Nikkei 225 were little changed on Friday. Hang Seng Index futures rose 0.7% on Friday.


Hyflux has asked its Middle Eastern suitor Utico to address concerns flagged by creditor groups before a virtual townhall can be held for the water treatment firm’s perpetual securities and preference shares (PnP) investors.

Suntec Real Estate Investment Trust’s (Suntec Reit) manager is looking to acquire a half stake in London’s Nova development from Canada’s pension fund, based on an agreed property value of £430.6 million (S$766.5 million). The Nova development consists of two Grade A office blocks with ancillary retail – Nova North and Nova South – as well as The Nova Building, a primarily residential asset.

Keppel Corporation on Friday said its offshore and marine arm Keppel Offshore & Marine (Keppel O&M) has clinched a contract valued at about S$600 million from an unnamed energy company. The contract is on progressive payment terms and is not expected to have any material impact on Keppel Corp’s net tangible assets and earnings per share for the current financial year, it noted.

Mirach Energy has been granted three months more to submit an exit-offer proposal to the Singapore Exchange (SGX), its board announced on Friday. This comes as certain shareholders have expressed their intention to collectively make an exit offer to all the other shareholders of the company.

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


Technical Analysis: Straits Time Index – Surprise gain above 2,500 sees the resilience of the STI

Analyst: Chua Wei Ren

– A buoyant Wall Street and hope of more Stimulus news spurs the hopeful Straits Time Index back into the 2,500 region in mid of last week.

– However, Friday saw prices remain strongly resisted at 2,549 region

– Overall, STI is seen trading within a range bound between 2,800 and 2,200

Technical Analysis: Hong Kong Tech – Is Hong Kong Tech sector going to have another miracle bull run?

Analyst: Chua Wei Ren

– The Hong Kong market outlook remain under perform despite a rise last Monday.

– Friday see prices slide back into negative territory with the Hang Seng Index closing at 24,119.10.

– Major technological stock closes lower on Friday as the U.S expresses interest to curbs on Ant Group and Tencent payment services.

>> Read more technical reports


Singapore Banking Monthly – Additional relief measures to ease moratorium woes

Recommendation: NEUTRAL (Maintained); Analyst: Tay Wee Kuang

– Lowest quarterly interest rates since 2014 (3M-SIBOR: 0.43%; 3M-SOR: 0.19%) expected to weigh in on NIMs for the banks in 3Q20.

– Loans growth fell for a third consecutive month (-1.03% YoY), as business loans contracted for the first time in four years (-0.04% YoY).

– MAS announced partial extension of loan moratorium for individuals and SMEs in need, allowing banks to avoid potential cliff effect of loan quality deterioration upon expiry of loan moratorium.

Maintain the Singapore Banking Sector at NEUTRAL. Despite an expected recovery in non-interest income as the economy reopens, banks’ earnings are unlikely to reach pre-COVID-19 levels in the near term as banks continue to experience strong headwinds from low interest rates and heightened allowances.

SG Bonds Weekly – Week 42

Credit Analyst: Timothy Ang

– Starhill Global Real Estate Investment Trust obtained a three-year unsecured and committed revolving credit facility of S$40 million from UOB.

– Olam International has upsized its flagship debt facility by US$300 million to US$1.98 billion, and will use it to refinance existing loans.

– Suntec Real Estate Investment Trust’s manager is looking to acquire a half stake in London’s Nova development from Canada’s pension fund, based on an agreed property value of £430.6 million (S$766.5 million).

>> Read more research reports

You may read our Phillip 4Q20 Singapore Strategy report here.

HK Reports – Read up on our Hong Kong reports here


Webinar Of The Week

Market Outlook: (PSR) First Sponsor (Initiation), Hyphens, Sasseur, Bond Model Portfolio, FOMC and more

Date: 21 September 2020

For more on Market Outlook

Updates summarised in 3 minutes

Phillip Research in 3 minutes: #25 – Prime US REIT; Initiation

For more videos on Phillip in 3 Mins

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 揳s 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