Daily Morning Note – 13 February 2019
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YOUR PHILLIP SUMMARY
Asian shares looked set for gains after U.S. equities shook off their malaise Tuesday. The S&P 500 Index registered its biggest one-day increase this month, breaking through its 200-day moving average. President Donald Trump said he’s open to extending a March 1 deadlineto raise tariffs on Chinese products if the two sides are near an agreement, sending a conciliatory signal amid talks to resolve the trade war between the world’s two biggest economies. In addition, Senator Marco Rubio is proposing legislation that would counteract China’s ” Made in China 2025″ economic-development initiative by restricting and taxing Chinese investment in the U.S. and by raising import duties on goods produced by industries supported by Beijing’s program. Speaking at Mississippi on Tuesday, Federal Reserve Chairman Jerome Powell said the U.S. economy is “strong” though its benefits haven’t been felt evenly across the country.
RESEARCH REPORT
Singapore Coal Monthly – Force majeure shocked the markets
Recommendation: OVERWEIGHT, Analyst: Chen Guangzhi
– A tragic coal mine accident led to over 70% of mines shut for safety investigation in Shannxi
– Indonesia lowered 2019 domestic production target
– Rains stalled thermal coal production in South Kalimantan
800 Super Holdings Ltd – Ceasing Coverage
Last Close Price: $0.69, Analyst: Richard Leow
– Revenue in line with forecast. PATMI -3.2% lower than expected
– Lower profit due to ramp-up phase of new projects that are starting up; particularly the
sludge treatment plant
– Next project in the pipeline is the Tuas South laundry plant
– Ceasing coverage due to reallocation of internal resources
BREAKING NEWS
President Donald Trump said he’s open to extending a March 1 deadline to raise tariffs on Chinese products if the two sides are near an agreement, sending a conciliatory signal amid talks to resolve the trade war between the world’s two biggest economies.US tariffs on US$200 billion worth of imports from China are scheduled to rise to 25 per cent from 10 per cent if the two sides cannot reach a deal by the deadline, increasing pain and costs in sectors from consumer electronics to agriculture.
Brexit: Bank of England Governor Mark Carney said on Tuesday Britain should be under no illusions about the likely shock to its economy if it leaves the European Union next month without a transition deal to ease the shock. The United Kingdom is on course to leave the European Union on March 29 without a deal unless Prime Minister Theresa May can convince the bloc to amend the deal she agreed in November and then sell it to sceptical British lawmakers.
Federal Reserve Chairman Jerome Powell said the U.S. economy is “strong” though its benefits haven’t been felt evenly across the country. “Today, data at the national level show a strong economy,” Powell told students Tuesday at Mississippi Valley State University. “Unemployment is near a half-century low, and economic output is growing at a solid pace.”
SGX’s Securities daily average value up 18 per cent a month ago to S$986 million but a 26 per cent decline over year-ago levels. In the derivatives market, the total volume at 18.61 million was up 1 per cent month-on-month and up 3 per cent year-on-year.
Source: SGX Masnet, The Business Times, Bloomberg, Channel NewsAsia, Reuters, PSR
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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