Daily Morning Note – 13 November 2018
WEEKLY MARKET OUTLOOK WEBINAR
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YOUR PHILLIP SUMMARY
Dow Jones Industrial Average tumbled more than 600 points on Monday as anxiety over the health of technology behemoths sparked a broad retreat from the stock market. Monday’s selling began in the technology sector, then morphed into a rout that dragged lower everything from oil conglomerates to manufacturers to entertainment firms. A gauge of 30-day turbulence in the Nasdaq 100 has tripled in five weeks, pushing it to the highest since 2011. Day-to-day swings are averaging 1.7 percent, half a percentage point more than in February. Prices for options protection in tech exceed the rest of the market by the most in seven years, using implied volatility on the Nasdaq and the S&P 500.
Oil prices notched their longest losing streak on record Monday, as comments from President Trump negated expectations that the global oil cartel and its allies will cut production.December delivery fell 0.4% to $59.93 a barrel on the New York Mercantile Exchange, marking the 11th consecutive session of losses, the longest in data going back to 1983.
Asian stocks tumbled at the open on Tuesday, with Japanese benchmarks sliding more than 3 percent, following a tech-led slump on Wall Street overnight thanks to a deteriorating outlook for iPhone sales. Treasury yields dropped and the yen headed higher.
RESEARCH REPORTS
800 Super Holdings Ltd – Transitional pains
Recommendation: Neutral (downgraded), Last Close Price: $0.79
Target Price: $0.80, Analyst: Richard Leow
– Revenue 4.6% lower than expected, PATMI 51% lower than estimate
– We under-estimated the purchase of supplies and disposal charge by 23%
– Returned to profit after 4Q18 surprise loss; underpinned by QoQ improvement
in core business
– Downgrade to Neutral; new target price of $0.80 (previously $1.03) as we slash
FY19e and FY20e earnings estimate by 45% and 43% respectively
BREAKING NEWS
Swagtron is partnering with DiSa to combat retail and return fraud on their products.
Jawala Inc. has called for a voluntary trading suspension, following the freezing of its subsidiary’s bank accounts.
KrisEnergy has commenced the G10/48 Thai drilling program.
Oxley Holdings sold over 46% of Kent Ridge Hill Residences during the weekend.
CapitaLand’s RCCIP III in JV with GIC to acquire Shanghai’s tallest twin towers for RMB12.8 billion.
Source: SGX Masnet, Bloomberg, Reuters, The Business Times, Channel NewsAsia, Phillip Securities Research
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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