Daily Morning Note – 14 March 2019
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YOUR PHILLIP SUMMARY
Stocks closed in the black on Wednesday, the third consecutive session with gains following last week’s pullback. The S&P 500 closed at a level not seen since last November, before the market rolled deep into the trough. The Dow Jones Industrial Average rose 0.58% to close at 25,702.89. The S&P 500 gained 0.69%, to end at 2810.92, and the Nasdaq Composite added 0.69% to 7643.41. Boeing managed to climb back into positive territory on Wednesday, after plunging for two consecutive days in the aftermath of the Ethiopian Airlines accident. Still, the stock has shed nearly $26 billion of its market value, falling from nearly $240 billion to $213 billion.
After rejecting Prime Minister Theresa May’s Brexit plan for a second time on Tuesday, British lawmakers unexpectedly ruled out a no-deal exit from the EU on Wednesday. Many businesses have considered a no-deal exit–or “hard Brexit”–as the worst-case scenario for the ongoing saga. With that out of the picture, investors can take a breather for now.
Demand for durable goods produced by U.S. manufacturers rose in January for the third consecutive month. Producer prices edged higher in February, but falling short of the estimated pace. This is the latest sign that underlying inflation pressures remain tepid and the Fed will likely continue to hold from raising rates this year.
In separate exchange filings on Wednesday afternoon, Keppel Infrastructure Trust (KIT) and Oxley Holdings requested trading halts pending announcements. The trading halt for KIT was requested by trustee-manager Keppel Infrastructure Fund Management (KIFM) at 3.03pm on the Singapore Exchange. Meanwhile, Oxley requested its trading halt at 12.21pm.
PROPERTY developer KOP said on Wednesday that a court claim against certain of its subsidiaries has failed. In December 2017, a statement of claim was filed by Dominic Andrla against certain KOP subsidiaries, to cancel the lease and unit management agreement for two units of a property owned by KOP’s subsidiary.
LIFESTYLE group LifeBrandz has posted a net loss of S$599,000 in the three months ended Jan 31, widening 18 per cent from a net loss of S$510,000 in the same period a year earlier. Revenue in the second quarter rose 65 per cent to S$1.5 million, but total expenses also jumped 50 per cent to S$2.15 million. The increase in revenue was mainly due to increase in food and beverage (F&B) revenue of S$800,000, partially offset by decrease in travel booking service revenue of S$200,000.
Singapore Post is likely to wind down or sell its loss-making US e-commerce business after conducting a strategic review of the unit, according to a Bloomberg survey. A potential divestment or shuttering of the business will bode well for SingPost’s long-term profitability, according to four analysts covering the stock.
Y Ventures has appointed Deloitte & Touche Enterprise Risk Services as an independent reviewer to assess lapses in its internal controls and the impact of adjustments to prior years’ financial statements, the e-commerce firm announced late Tuesday night.
United Overseas Bank (UOB) has successfully priced the first Panda bond from Singapore, which is also only the second issued from a South-east Asian financial institution. The onshore Renminbi (RMB) bond was priced at 3.49 per cent, one of the lowest rates among all Panda bonds issued to date, UOB said in a regulatory filing on Wednesday.
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
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