Daily Morning Note – 13 March 2019

WEEKLY MARKET OUTLOOK WEBINAR

Register HERE for MONDAY’s 11.15am webinar.

Archived webinars available.

YOUR PHILLIP SUMMARY

The stock market is enjoying a solid week so far, but investors might not know it by gauging the performance of the Dow Jones Industrial Average, which by a few measures is registering its widest divergence with its U.S. peers over a two-day stretch in years. As of Tuesday’s close, the Dow was up 0.4% over the past two sessions, an otherwise respectable early start to a week, if not for the outsize performance of the S&P 500 index, up 1.8% week to date, and the Nasdaq Composite Index, which is enjoying a two-day return of 2.5%, according to FactSet data.

Of course, Boeing Co.’s latest 737 Max 8 tragedy is the apparent cause for the current disparity in indexes, which tend to move in lockstep more than they have this week. Boeing has shed $47.13, or 11.2%, its stock price since Friday’s close.

The stock market shrugged off the U.K. Parliament’s rejection of Prime Minister Theresa May’s Brexit deal, in part, as the outcome had been anticipated. Lawmakers will now have to decide whether they want a Brexit without a deal or possibly extend the March 29 deadline for leaving the European Union.
Separately, reports indicated progress on a Sino-American trade deal, with China and the U.S. reportedly close to a deal on currencies—an element in their broader trade dispute.

Source: CNBC, MarketWatch


BREAKING NEWS

China Sunsine Chemical Holdings‘ subsidiary on March 8 entered into an investment agreement with the local government of Shanxian County to acquire an 800 mu (534,000 sq m) plot of land to carry out an investment project in phases. The project is meant to further expand the wholly owned subsidiary Shandong Sunsine’s production capacity in rubber chemical products.

LIPPO Malls Indonesia Retail Trust (LMIRT) is looking to acquire Lippo Mall Puri in West Jakarta for 3.7 trillion rupiah (S$354.7 million), financed with a combination of debt and equity financing, the Reit’s (real estate investment trust) manager said in a regulatory filing.

Standard & Poor’s (S&P) reiterated its “A+” rating and “stable” outlook on the mainboard-listed telco on Tuesday, but added that operational weakness has brought Singtel closer to a ratings downgrade trigger. The note comes a week after Moody’s Investors Service cut its outlook to “negative”, with “weak credit metrics” for Singtel’s “A1” rating.

SIIC Environment, through its 92.15 per cent-owned subsidiary Shanghai Fudan Water Engineering Technology Co, has signed a supplementary agreement with the Shanghai Fengxian Water Authority in China for the Fengxian West Wastewater Treatment Plant project.

The slide in SGX stock has coincided with the Hong Kong Stock Exchange (HKSE) announcing plans on Monday to introduce MSCI China A Index futures to provide a hedging tool as global investor interest in Chinese mainland shares surges. On Tuesday, Citi Research downgraded its call on the bourse operator’s stock to “sell” and lowered its target price from S$7.80 to S$7, saying that HKSE’s China futures contract product may curb SGX’s profits. Citi analyst Robert Kong noted that while the “timing of such a product launch is still uncertain, the expectation is months rather than years”.

Mammoth German carmaker Volkswagen said Thursday it had earned 12.1 billion euros (S$18.44 billion) in net profit in 2018, defying heavy charges linked to its “dieselgate” emissions cheating scandal and headwinds from tough new pollution tests.

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

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.