Daily Morning Note – 13 April 2020


Stocks looked set to for a mixed start to the week as investors mulled a slowdown in new coronavirus cases and readied for the start of earnings season. Oil futures swung after a historic deal to cut output.

U.S. equity futures declined in early Asia trading and Japanese contracts retreated. Many markets remained closed for holidays. The euro steadied after France, Germany, Italy and Spain reported a slowdown in new cases. Canada’s dollar opened higher after OPEC+ agreed to cut 9.7 million barrels a day from global crude output — just below the initial plan of 10 million. The yen ticked higher.


A China unit of mainboard-listed property developer GuocoLand will sell Guoman Hotel in Shanghai and 256 of its underground carpark spaces for 1.44 billion yuan (S$290.7 million) in cash. The net book value of the real estate is about 509.5 million yuan as at March 31, and GuocoLand is expected to record a net gain of S$90.6 million.

CHINA Haida’s request for more time to release its FY2019 results has been rejected by the Singapore Exchange (SGX); the aluminium panel maker now has up to April 15 to do so.

Top Glove Corp, the world’s biggest maker of medical gloves, plans to start producing face masks to meet rising demand from the coronavirus outbreak, a top executive told Reuters. The Malaysian company, which makes one out of every five gloves in the world, will have a facility ready in two months with a production capacity of 110 million masks a year.

BROADWAY Industrial Group‘s independent auditor has raised doubts about the group’s ability to continue as a going concern. However, RSM Chio Lim’s audit opinion remains unqualified, the mainboard-listed precision manufacturing group said on Sunday in a regulatory filing.

DATAPULSE Technology gave an update on Saturday on the operations of its hotel Travelodge Myeongdong City Hall in Seoul. The property was formerly known as Hotel Aropa. “The novel coronavirus (Covid-19) outbreak is continuing to have a significant adverse impact on the hospitality industry in South Korea, with both international and domestic travel restrictions and flight suspensions affecting hotel occupancy levels. The group’s results for the financial year ending July 31, 2020 will be adversely impacted as a result of, among other things, the very low occupancy of Travelodge Myeongdong City Hall,” Datapulse said in its regulatory filing with the Singapore Exchange.

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


Singapore Banking Monthly – Relief to tide through challenging times

Recommendation: Overweight (Maintained)

Analyst: Tay Wee Kuang

– Despite the rate cut by the Federal Reserve totalling 150 bps in March, local interest rates are showing short-term resilience. NIMs may compress by mid-teens level for the full year, less than previously expected.

– February loans growth was stable at 3.05% YoY. Loans will likely sustain at current levels of growth with various government measures to encourage lending amidst liquidity crunch faced by businesses as the COVID-19 pandemic ensues.

– Derivatives volume rose 34% YoY in March as volatility is at the highest monthly levels since the 2008 Global Financial Crisis.

– Maintain Singapore Banking Sector at Overweight. Local banks will benefit from the slew of measures introduced by the government to reduce the strain on the financial system through risk-sharing and provision of low-cost funding.

Singapore REITs Monthly – The virus reiterating trends of the future

Recommendation: OVERWEIGHT (Upgraded), Analyst: Natalie Ong

– Sell down in SREITs (-29.4%) surpassed the market (-20.6%) sell down as SREITs were hurt by containment measures. Hospitality and retail trading at 0.5x P/NAV

– Correspondingly, the dividend yield and yield spread expanded 197bps (+45.9%) and 215bps (+70.4%) MoM to 6.2% and 5.2%. Sector yield spread at the +2.57 standard deviation level

– Upgrade to OVERWEIGHT on S-REITs sector. Sub-sector preferences: Office and Industrial

Oxley Holdings Ltd (Credit Commentary) – Company Update Highlights

Credit Commentary, Credit Analyst – Timothy Ang

– Primary goal is to conserve and accumulate cash to settle maturing debt

– Project completions have been delayed, however no cashflow issues for now.

– Low completion risk for key projects

– Chevron House sale delayed by due diligence process during the lockdown

Read more research reports

HK Reports – Read up on our Hong Kong reports here


Webinar Of The Week

Market Outlook: (PSR) City Development Limited, CapitaLand Limited, Dasin, EC World, REITS & Banking Monthly, SG Weekly & Technicals

Date: 16 March 2020

For more on Market Outlook

Phillip Research in 3 minutes: #19 – Singapore Banking Sector Update

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