Daily Morning Note – 15 July 2020


Asian stocks looked set to gain Wednesday as U.S. stock futures moved higher in overnight trading after Moderna said its coronavirus vaccine produced antibodies in all patients in an early trial, raising hopes for a faster economic recovery. Futures pointed to gains in Tokyo and Sydney, after the Dow jumped more than 500 points to post its best day in two weeks.


Hyphens Pharma closed 50% higher on Tuesday, following an announcement that its patent for Ceradan Advanced has been granted in the UK. Hyphens Pharma said its patent for Ceradan Advanced is also pending approval in 13 countries/regions, including Singapore, Malaysia, Vietnam, China, Europe and the US. Ceradan Advanced is a next‐generation emollient therapy scientifically formulated for eczema‐prone skin conditions. The company also announced the launch of two new products, Ceradan Gentle Cleanser and Ceradan Hand Lotion Sanitiser. They are available in retail pharmacies such as Guardian and Watsons in Singapore. The two new products are expected to contribute positively to the revenue and profitability of the group, Hyphens Pharma said.

Singapore’s fourth desalination plant, the Keppel Marina East Desalination Plant (KMEDP), started commercial operations on June 29. Keppel Infrastructure’s wholly-owned subsidiary Marina East Water will operate the plant for a 25-year concession period from 2020 to 2045, under the design, build, own and operate (DBOO) arrangement with national water agency PUB. KMEDP is Singapore’s first large-scale, dual-mode desalination plant, said Keppel Corp and PUB. It is capable of producing 137,000 cubic metres or about 30 million gallons of fresh drinking water per day. Keppel Infrastructure CEO Ong Tiong Guan said the new plant will also contribute to the group’s recurring income stream, bolstering its ability to create long-term value for stakeholders.

Nam Lee Pressed Metal Industries posted a 97% drop in net profit to S$125,000 for the half year ended March 31, from about S$4.1 million a year ago. Its gross profit fell due to slower progress of projects and a reduction in production output, while its other operating expenses rose due to a fair value loss on derivatives of S$1.7 million for the half year, compared to a loss of SS$0.2 million for H1 2019. Revenue for the half year fell 12 per cent to about S$58.1 million, from about S$66 million a year ago. This was due to a fall in revenue from the company’s aluminium segment after its factories in Malaysia closed from March 18 due to the Covid-19 pandemic-triggered movement control order in the country. Nam Lee said the group will continue to face challenges in the short term as a result of the Covid-19 pandemic, and expected its full-year revenue to be lower than the previous financial year’s.

Singtel associate Bharti Airtel, India’s second-largest wireless carrier, is set to announce a partnership with US telecommunications giant Verizon Communications as it seeks to expand offerings in the local market. Led by billionaire Sunil Mittal, Airtel has more than 320 million wireless phone subscriptions, compared with about 388 million for Jio. Vodafone Idea – a joint venture between UK’s Vodafone Group and the Aditya Birla Group – had about 290 million as of March.

Hong Leong Asia has again extended its bid to take over Malaysian cement maker Tasek Corporation. The deadline for its unconditional voluntary takeover offer for all remaining ordinary shares and preference shares has now been moved to 5pm on Aug 3, instead of the original deadline of 5pm this Friday. The company first sought to take over the Malaysia-listed Tasek last year, launching the offer on May 12. It now owns 97.09% of Tasek.

Source: SGX Masnet, The Business Times, Bloomberg, Channel NewsAsia, Reuters, PSR


Webinar Of The Week

Market Outlook: Market Outlook: SG Banking Monthly, SG Bonds Weekly and SG Strategy 3Q20 (with stock picks)

Date: 06 July 2020

For more on Market Outlook

Phillip Research in 3 minutes: #23- Yoma Strategic Holdings; Initiation

For more videos on Phillip in 3 Mins

Read the research report(s), available through the link(s) above, for complete information including important disclosures Important Information

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 揳s 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.
Confidentiality Note
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.


Contact us to Open an Account

Need Assistance? Share your Details and we’ll get back to you


This material is provided by Phillip Capital Management (S) Ltd (“PCM”) for general information only and does not constitute a recommendation, an offer to sell, or a solicitation of any offer to invest in any of the exchange-traded fund (“ETF”) or the unit trust (“Products”) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. You should read the Prospectus and the accompanying Product Highlights Sheet (“PHS”) for key features, key risks and other important information of the Products and obtain advice from a financial adviser (“FA“) pursuant to a separate engagement before making a commitment to invest in the Products. In the event that you choose not to obtain advice from a FA, you should assess whether the Products are suitable for you before proceeding to invest. A copy of the Prospectus and PHS are available from PCM, any of its Participating Dealers (“PDs“) for the ETF, or any of its authorised distributors for the unit trust managed by PCM.  

An ETF is not like a typical unit trust as the units of the ETF (the “Units“) are to be listed and traded like any share on the Singapore Exchange Securities Trading Limited (“SGX-ST”). Listing on the SGX-ST does not guarantee a liquid market for the Units which may be traded at prices above or below its NAV or may be suspended or delisted. Investors may buy or sell the Units on SGX-ST when it is listed. Investors cannot create or redeem Units directly with PCM and have no rights to request PCM to redeem or purchase their Units. Creation and redemption of Units are through PDs if investors are clients of the PDs, who have no obligation to agree to create or redeem Units on behalf of any investor and may impose terms and conditions in connection with such creation or redemption orders. Please refer to the Prospectus of the ETF for more details.  

Investments are subject to investment risks including the possible loss of the principal amount invested. The purchase of a unit in a fund is not the same as placing your money on deposit with a bank or deposit-taking company. There is no guarantee as to the amount of capital invested or return received. The value of the units and the income accruing to the units may fall or rise. Past performance is not necessarily indicative of the future or likely performance of the Products. There can be no assurance that investment objectives will be achieved.  

Where applicable, fund(s) may invest in financial derivatives and/or participate in securities lending and repurchase transactions for the purpose of hedging and/or efficient portfolio management, subject to the relevant regulatory requirements. PCM reserves the discretion to determine if currency exposure should be hedged actively, passively or not at all, in the best interest of the Products.  

The regular dividend distributions, out of either income and/or capital, are not guaranteed and subject to PCM’s discretion. Past payout yields and payments do not represent future payout yields and payments. Such dividend distributions will reduce the available capital for reinvestment and may result in an immediate decrease in the net asset value (“NAV”) of the Products. Please refer to <www.phillipfunds.com> for more information in relation to the dividend distributions.  

The information provided herein may be obtained or compiled from public and/or third party sources that PCM has no reason to believe are unreliable. Any opinion or view herein is an expression of belief of the individual author or the indicated source (as applicable) only. PCM makes no representation or warranty that such information is accurate, complete, verified or should be relied upon as such. The information does not constitute, and should not be used as a substitute for tax, legal or investment advice.  

The information herein are not for any person in any jurisdiction or country where such distribution or availability for use would contravene any applicable law or regulation or would subject PCM to any registration or licensing requirement in such jurisdiction or country. The Products is not offered to U.S. Persons. PhillipCapital Group of Companies, including PCM, their affiliates and/or their officers, directors and/or employees may own or have positions in the Products. Any member of the PhillipCapital Group of Companies may have acted upon or used the information, analyses and opinions herein before they have been published. 

This advertisement has not been reviewed by the Monetary Authority of Singapore.  


Phillip Capital Management (S) Ltd (Co. Reg. No. 199905233W)  
250 North Bridge Road #06-00, Raffles City Tower ,Singapore 179101 
Tel: (65) 6230 8133 Fax: (65) 65383066 www.phillipfunds.com