Daily Morning Note – 14 March 2018
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Phillip Singapore Monthly – March 2018: New uncertainty emerges
Analyst: Paul Chew
– The current US investigation into China’s violation of intellectual-property
rights may result in the US restricting investments in US companies, tariff
penalties on imports, and visa controls.
– In Singapore, the headline news was the FY18 budget and completion of the
reporting season. Most impactful was an incremental rise in stamp duties for
property and an extension of tax transparency to REIT ETFs.
– STI was down only 0.5% in March. But this masked broader weakness in the
market. Of its 30 component stocks, only eight posted positive returns.
– We remain Overweight on banks, property, electronics and the consumer
sector. DBS’ strong performance has tilted our preference to OCBC.
US President Donald Trump has ousted the US Secretary of State, Rex Tillerson, and has nominated the Director of the Central Intelligence Agency, Mike Pompeo, as the new Secretary of State. Tillerson would remain at the department until March 31 to conclude an administrative handover, meanwhile his deputy, John Sullivan, is taking charge.
On a separate note, the US President is seeking to impose tariffs on up to US$60bn of Chinese imports, targeting the technology and telecommunications sectors.
Grab has launched a new fintech platform, Grab Financial, which will offer loans and insurance to “millions” of consumers in Southeast Asia. The new platform could potentially disrupt the banking sector.
ACROMEC Limited has incorporated two companies to diversify its business into the renewable energy sector (via 80%-owned subsidiary Acropower) and its expansion into Indonesia (via 67%-owned subsidiary PT Acromec Trading Indonesia).
CapitaLand Limited has divested the entire 100% equity interest in Citadines Ahmedabad Aparthotel Private Limited, a company incorporated in India, for an aggregate cash consideration of INR528.5mn (c.S$10.8mn).
On the other hand, CapitaLand has increased its shareholding in a subsidiary, Rattha Somerset Greenways (Chennai) Private Limited. Rattha Somerset Greenways (Chennai) has allotted an additional 61,649 new equity shares of par value INR10 per share at an issue price of INR600.80 per share to CapitaLand and another existing shareholder, in proportion to their respective shareholdings. Following the Share Increase, CapitaLand’s interest remains unchanged at 51%.
Alliance Mineral Assets has terminated the services of its CEO, Tjandra Adi Pramoko, and his wife, Simone Suen Sze Man, who serves as an executive director of the company, saying it has “lost confidence” in the abilities of both persons in continuing their duties.
Gaylin Holdings has completed a US$100mn investment and debt restructuring organised by Asian private equity fund manager ShawKwei & Partners.
Substantial shareholder and former deputy chairman of Boustead Singapore, Saiman Ernawan, has pared his entire stake in the company down to zero in two transactions, at sale price of c.76 Singapore Cents per share.
Singapore Exchange proposes to refine members’ Derivatives Clearing Fund requirement.
Source: SGX Masnet, 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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