Daily Morning Note – 15 February 2019


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Asian shares appear set to open lower after U.S. stocks edged down in listless trading. Disappointing economic data and reports that the president will declare a national emergency overshadowed news that another government shutdown will be averted.

Overnight on Wall Street, the S&P 500 slipped 0.27 percent to close at 2,745.72 while the Dow Jones Industrial Average declined 103.88 points to finish its trading day at 25,439.39. The Nasdaq Composite, on the other hand, edged up by 0.1 percent to close at 7,426.95. The moves came on the back of U.S. retail sales in December coming in far below expectations – declining 1.2% in December, their biggest monthly drop since September 2009.


Singapore REITs Monthly – Monthly Tracker: February 2019

Analyst: Tara Wong

– FTSE S-REIT total return gained +7.5% YTD. Strongest gains from the Commercial sub-sector
(+9.06% YTD) and weakest showing at the Industrial sub-sector (+6.54%).

– Sector yield spread of 268bps over the benchmark 10-year SGS (10YSGS) yield dipped back
below the -1 standard deviation (SD) level as at end-January.

– 3m SOR continued to rise YTD, ending at 1.91% in January.

– Remain NEUTRAL on S-REITs sector. Sub-sector preferences: Office and Hospitality.

Centurion Corporation – Opportunities in Penang

Analyst: Natalie Ong

– Site visit note to Centurion’s Westlite Bukit Minyak Centralised Accommodation Transit –
Penang’s first workers’ dormitory

– Government support and policies in favour of worker dormitories

– Established track record in Malaysia

– Captive demand from medical device, automobile and E&E manufacturers


Singapore’s fourth-quarter economic growth missed estimates in the last stretch of 2018, shaving a fraction off its performance for the full year. Growth slowed to 3.2 per cent in 2018, from 3.9 per cent the year before, according to the Ministry of Trade and Industry (MTI) on Friday. Gross domestic product (GDP) expanded 1.9 per cent year-on-year in the fourth quarter, after expanding by 2.4 per cent the quarter before.

Apple appeared set to launch its streaming television service next month, calling on celebrities such as Jennifer Aniston, Reese Witherspoon and “Star Wars” director J.J. Abrams to join an event at its Silicon Valley headquarters.

Circles.Life has secured a round of funding led by venture capital player Sequoia India to launch in more than five countries in the next 18 months. Two markets have been confirmed for launch in 2019, with Taiwan in Q2 and Australia in Q3. Circles.Life, which leases network from telco M1, is looking to invest more than S$50 million in each new market.

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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