Daily Morning Note – 14 Aug 2019
WEEKLY MARKET OUTLOOK WEBINAR
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A Trump Administration decision to delay the imposition of tariffs on goods imported from China set off a huge rally Tuesday that reclaimed most of Monday’s losses.
The rally sent the S&P 500 up 1.48%, the Dow Jones industrials up 1.44% and the Nasdaq Composite up nearly 2%.
The gains for the S&P 500 and the Nasdaq — 43.69 points and 153 points, respectively — recovered all of Monday’s losses. The Dow fell about 7.5 points short of a total recovery. The Nasdaq 100 index, which has a concentration in big tech, jumped more than 2.2%. The index more than recovered its Monday loss, ending the day 82 points ahead of Friday’s close.
AGRI and food giant Olam International’s net profit shrank 34.5 per cent to S$61.5 million for its second quarter ended June 30, from S$94 million a year ago. This was due to higher depreciation and amortisation, net finance costs and exceptional losses, Olam said on Wednesday morning.
MAINBOARD-LISTED Singapore Technologies Engineering (ST Engineering) on Wednesday posted an 18 per cent rise in second-quarter net profit to S$138.2 million for the three months ended June 30, up from S$117.5 million a year ago, on the back of higher earnings from its marine sector.
PROPERTY developer OUE Limited on Tuesday posted a ballooning in net profit to S$60.9 million for its second quarter ended June 30. This was more than 10 times the S$5.3 million that it reaped a year ago. This was mainly due to a one-off S$136.6 million gain on disposal of Aquamarina Hotel, which owns Marina Mandarin Singapore.
AGRI giant Wilmar International’s net profit for the second quarter fell 52 per cent to US$151 million from a restated US$316.4 million a year ago on the back of lower soybean crush margins, weaker showing by associates and sugar business as well as higher finance cost.
CONTRIBUTIONS from its newly acquired properties lent a boost to Manulife US Reit’s second-quarter distribution per unit (DPU), which rose to 1.53 US cents from 1.3 US cents a year ago. The acquisitions include Centrepointe, a two-tower Class A office building in Washington DC, 1750 Pennsylvania Avenue also in Washington DC, and the Phipps Tower in Buckhead, Atlanta.
Source: SGX Masnet, The Business Times, Bloomberg, Channel NewsAsia, Reuters, PSR
Venture Corp Ltd
Recommended Action: Technical BUY
Venture Corp is currently heading for a bullish breakout despite the overall range trading mode.
Technicals point to the current falling wedge formation as a strong clue that the stock is heading for a bullish reversal.
Webinar Of The Week
Market Outlook: : (PSR) Raffles Medical Group, Singapore Exchange Limited, DBS Group Holdings, Oversea-Chinese Banking Corp Limited, United Overseas Bank Limited, Ascendas REIT, Ascott Residence Trust, Sheng Shiong Group & Phillip Singapore Weekly
Date: 05 August 2019
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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