Daily Morning Note – 15 July 2019
WEEKLY MARKET OUTLOOK WEBINAR
Register HERE for MONDAY’s 11.15am webinar.
Archived webinars available.
U.S. stocks set more records on Friday, racing in late trade to end in higher territory once again, after Federal Reserve Chairman Jerome Powell in two days of congressional testimony this week bolstered investor expectations for an interest-rate cut at the end of the month.
The Dow Jones Industrial Average gained 244.02 points, or 0.90%, at 27,332.10, while the S&P 500 index added 13.83 points, or 0.46%, at 3,013.75. The Nasdaq Composite index closed 48.10 points higher at 8,244.14, a gain of 0.59%.
Haw Par Corp Ltd
Recommended Action: Technical BUY
Since May 2019, Haw Par’s volatile movement has thrown many traders into confusion. However, based on the recent price movement, Haw Par has entered into a big bullish pennant.
Jason Marine Group Ltd – Trading at cash value with a potential recovery
Recommendation: Non-Rated, Last Done: S$0.135
Analyst: Phillip Research Team
– Trading at net cash and pays 3.7% dividend yield
– Reviving oil and gas ordering cycle for new vessels
– Bulk of problematic investments written off. Trading at a price to book of 0.5x.
Verizon Communications – Positive Wireless Momentum and 5G Optionality
Analyst: Edmund Xue
– Verizon (VZ) reported healthy service revenue growth in Q1 (+4.3% YoY). VZ is
the largest wireless operator in the U.S.
– 5G provides possible upside for VZ.
– Wireless market remains upbeat.
– We have a TECHNICAL BUY rating for VZ.
Phillip Singapore Strategy – Too hungry for yield
Analyst: Paul Chew
– We expect a range-bound market in 3Q19. Global economy still drifting lower
and market expectations of lower interest rates is too aggressive.
– Expect the trade dispute between U.S. and China to taper down. The 2020
elections is nearby and corporate America is pushing back against these
– We raised our weighting on financials this quarter for Phillip Absolute 10
Focus will be on Chinese data, trade tensions this week. The most important of that will be Q2 gross domestic product (GDP), an important barometer for measuring the effects of rekindled trade tensions between the US and China in May. According to a Bloomberg consensus forecast, growth in China is expected to slow slightly to 6.2 per cent year-on-year (yoy) from 6.4 per cent in Q1. China’s June retail sales, industrial production, unemployment data and home prices will also be out on Monday.
US proposes barring big tech companies from offering financial services, digital currencies. In a sign of widening scrutiny after Facebook Inc’s proposed Libra digital coin aroused widespread objection, the bill proposes a fine of US$1 million per day for violation of such rules. Such a sweeping proposal would likely spark opposition from Republican members of the house who are keen on innovation, and would likely struggle to gather enough votes to pass the lower chamber.
Huawei planning major job cuts in US: WSJ. The layoffs are expected at Huawei’s US-based research and development arm, Futurewei Technologies, the paper reported, citing unnamed people familiar with the situation. The unit currently employs 850 people at several labs in the United States, but hundreds of them could be laid off, the report said. Some of the company’s Chinese employees were given the option of keeping their jobs and returning home to work.
Hong Kong turmoil has millionaires eyeing other wealth havens like Singapore. Private bankers are being flooded with inquiries from investors in Hong Kong who are worried about the long-term effects of the political crisis in the Chinese city. While the Hong Kong government has shelved the controversial law that sparked the latest round of unrest – one that would have allowed criminal suspects to be transferred to the mainland for trial – a new tier of wealthy investors are setting up ways to move their money out of the former British colony more quickly, bankers and wealth managers said.
Junior miner, bullion-linked ETF on SGX rally on gold rush. Catalist-listed CNMC Goldmine Holdings – the first gold miner to snag a seat on the local bourse and also the largest – hit a year’s high three weeks ago and has been flirting around that level since. As well, volumes in the SGX-listed SPDR Gold Shares ETF doubled in June from the previous month. Spot gold prices have been rising and remained elevated above the critical breakout level of US$1,400 an ounce as at Friday.
Source: SGX Masnet, The Business Times, Bloomberg, Channel NewsAsia, Reuters, PSR
Webinar Of The Week
Clients of Phillip Securities can keep updated with Country Strategy and Singapore Sector Reports by logging into: www.poems.com.sg > STOCKS > Research
|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 “as 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.|
|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.|