Daily Morning Note – 13 November 2020

PHILLIP SUMMARY

Concerns about spiking Covid-19 cases sent US stocks to a negative finish Thursday, overshadowing the optimism from news early in the week about a potential vaccine. The benchmark Dow Jones Industrial Average lost 1.1 percent to end the session at 29,080.17. The broader S&P 500 fell 1.0 percent to 3,537.01, while the tech-dominated Nasdaq dropped 0.7 percent to 11,709.59, erasing much of the gains posted on Wednesday. Investors were upbeat after Pfizer and BioNTech on Monday announced promising results from a vaccine that trials showed was 90 percent effective. But worrying news that Covid-19 cases and hospitalizations were nearing levels seen in the worst days of the pandemic has investors on edge once again.

Oil prices fell on Thursday, weighed down by the surge in coronavirus cases that is hampering the global economy, along with an unexpected rise in US crude stockpiles. Oil futures tracked with US equities, which also fell on pandemic concerns. Europe is grappling with a sharp increase in infections and new social restrictions. In the United States, new cases have surpassed 100,000 per day for several days, and more than a dozen states have doubled their caseloads in the last two weeks. Brent crude fell 27 cents to settle at US$43.53 a barrel, while US West Texas Intermediate (WTI) crude fell 33 cents to settle at US$41.12 a barrel.

BREAKING NEWS

Mapletree Logistics Trust‘s preferential offering was oversubscribed, raising gross proceeds of S$144.1 million, the trust’s manager said in a Singapore Exchange filing Thursday night. The offering was part of an equity fund-raising exercise, alongside a private placement that raised about S$500 million. This brings total gross proceeds for the fundraising to S$644.1 million.

Sunpower Group reported a net profit of 36.6 million yuan (S$7.45 million) for the third quarter ended Sept 30, down 66.8 percent from the year-ago period, in the results release on Thursday night. But without the financial effects of convertible bonds and warrants, net profit would have risen 33.4 percent to 105.2 million yuan.

Synagie Corporation has changed its name to V2Y Corporation, it announced on Thursday night. This is after shareholder approval was gained for the proposed name change, and the disposal of its e-commerce business was completed. On Nov 12, the Accounting and Corporate Regulatory Authority of Singapore issued a notice confirming that the name change had taken effect the same day, said V2Y. The company’s trading counter name on Catalist will be changed to V2Y Corp from 9 am on Nov 17.

Luzhou Bio-Chem Technology has received in-principal approval for its delisting, it announced on Thursday night in a Singapore Exchange filing. This follows the offer for and resulting compulsory acquisition of the company’s shares by founder Niu Ji Xing in a bid to take the firm private via investment holding company Starnova, of which he is the sole director.

Q&M Dental Group has received a non-binding proposal from certain shareholders of Aidite (Qinhuangdao) Technology, in respect of the group’s disposal of its remaining stake in the associate, the Mainboard-listed firm said in a holding announcement on Thursday evening. Talks on this proposal are ongoing and no definitive terms have been agreed upon between the parties, said Q&M Dental Group. “Further, there is no certainty or assurance whatsoever that any transaction will arise from these discussions.”

Exxon Mobil said on Thursday it remains committed to expanding its refining-petrochemical complex in Singapore amid an ongoing review of its projects globally. Along with other oil producers, Exxon has been slashing costs due to a collapse in oil demand and ill-timed bets on new projects. The top US oil company earlier outlined more than US$10 billion in budget cuts this year.

The US government said on Thursday it would delay enforcement of a ban on TikTok, in compliance with a court order in favour of the Chinese-owned social media sensation. The Commerce Department said in a federal register notice it was holding off on enforcement on the ban – which had been ordered based on national security concerns voiced by US officials – as a result of an injunction by a federal judge issued on October 30.

Walt Disney on Thursday said it swung to a loss in the just-ended quarter as the global pandemic hit its theme parks and cinema operations. The media-entertainment powerhouse reported a loss of US$710 million in the period ending October 3, compared with a US$777 million profit in the same period a year ago. Revenue slumped 23 percent from last year to US$14.7 billion. But Disney shares jumped in after-hours trade on news that its recently launched streaming television service Disney+ had hit 73 million subscribers in a positive sign for the company shifting to compete with rivals like Netflix.

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

TECHNICAL REPORTS

Japfa Ltd

Analyst: Chua Wei Ren

Recommended Action: Technical SELL

Japfa Ltd (SGX: UD2) strong bullish outlook is likely to take a pause while the stock heads for a correction before a rebound to complete the final sub-wave (v). Furthermore, technical price action indicate that the bulls are running out of steam.

NagaCorp Ltd

Analyst: Chua Wei Ren

Recommended Action: Technical SELL

NagaCorp (HKEX: 3918) Downside has not complete yet after the strong selling at the end of 2019 to March 2020. Despite the upside recovery, the stock’s upside momentum is slow and it seems more of a corrective action. Based on the technical and wave analysis, the completion of wave (A) and (B) has been completed while wave (C) is yet to start.

>> Read more Technical reports

RESEARCH REPORTS

U.S Post-Election Focus (2/2): Stimulus uncertainty lingers

Analyst: Yeap Jun Rong

– Control of the Senate will only be decided after 5 January as two Georgia seats head towards runoff elections. Likely scenario is for the Democrats to win one seat in Georgia with the Republicans retaining control of the Senate on a 51-49 lead

– Even if the Democrats secure a marginal win of the Senate, some policies may be hard to pass. This is because of potential defections during voting. The Democrats have potentially higher defection rates.

– We do not expect any ‘skinny’ package. If some form of relief stimulus is passed alongside a new bill before 11 Dec to avoid a government shutdown, markets would be cheered. However, a more likely timeline, we think, is 1 Feb 2021, after the inauguration.

– Under a divided Biden win, we favour clean-energy space, healthcare sector, financials and big tech.

>> Read more research reports

HK Reports – Read up on our Hong Kong reports here

RESEARCH VIDEOS

Webinar Of The Week

Market Outlook: (PSR) StarHub, Banks & REIT Results, Banking Monthly, Credit Commentary, SG Weekly & more

Date: 09 November 2020

For more on Market Outlook

Updates summarised in 3 minutes

Phillip Research in 3 minutes: #26 – iX Biopharma Ltd; Initiation

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





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 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

IMPORTANT INFORMATION

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