Daily Morning Note – 13 April 2018

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RESEARCH REPORT

Cache Logistics Trust – CWT Commodity Hub converts to multi-tenancy lease
Recommendation: Accumulate (Maintain), Last Close Price: $0.84
Target Price: $0.91, Analyst: Richard Leow
– CWT Commodity Hub conversion to multi-tenancy lease
– CWT remains a core tenant at the property, committing to 61% of the space
– New occupancy of 86% is lower than expected and we lower our estimates
– Maintain Accumulate; lower target price of $0.91 (previously $0.93)

ETF Model Portfolio – March 2018
Analyst: Pei Sai Teng
– Gold & Commodities prove to be a good diversifier
– Price action of equity markets remain weak
– Further widening of credit spread reaffirmed risk-aversion sentiment
– TED spread and LIBOR-OIS spread signal stress in interbank market
– Probability of bond rout subsided significantly


BREAKING NEWS

Wall Street stocks rose Thursday as US President Donald Trump signalled a more cautious approach to potential Syria missile strikes and a more welcoming approach to international trade talks.

President Donald Trump told lawmakers he is considering rejoining the Trans-Pacific Partnership, the Asia-Pacific trade pact he withdrew from shortly after taking office. “He multiple times reaffirmed the point that TPP might be easier to join now,” said Senator Ben Sasse.

The Hong Kong Monetary Authority bought the local currency for the first time since the current trading band was imposed in 2005, after the exchange rate sank to the weak end of its permitted range.

Inflation may be easing in India, as data on Thursday showed, but there are mounting risks. At the top of the list is Prime Minister Narendra Modi’s plan to raise the prices of food crops to help distressed farmers, a key voter base.

Oil prices held steady on Thursday, remaining close to highs last reached in late 2014 on tensions over Syria and shrinking global oil inventories.

ComfortDelGro Corporation Limited‘s wholly- owned subsidiary, CDC Victoria Pty Ltd (“CDC Victoria”), has entered into an agreement to acquire all the issued shares of Tullamarine Bus Lines Pty Ltd (“TBL”) for A$32.2 million, in a move that will further strengthen its presence in Victoria, Australia.

Noble Group on Wednesday said that it has secured approval from 75 per cent of the senior creditors to take on a restructuring support agreement (RSA) – 75 per cent being the approval threshold for the RSA.

A joint entity by Chinese developer Yanlord Land Group and MCL Land has successfully tendered for the en bloc sale of the freehold Tulip Garden for S$906.9 million, the nation’s second largest collective sales deal so far in 2018.

Construction firm Lian Beng Group on Thursday reported a 63 per cent rise in net profit for the fiscal third quarter from a year ago, reflecting stronger revenue.

Source: SGX Masnet, The Business Times, Bloomberg, Phillip Securities Research

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