Daily Morning Note – 15 Sep 2020

PHILLIP SUMMARY

Asian stocks looked poised to drift Tuesday after snapping two weeks of declines Monday. U.S. shares rose for a second day amid a flurry of deal activity, while the dollar weakened. Futures dipped in Japan and Australia and were little changed in Hong Kong. The S&P 500 touched a week high before paring gains, while the Nasdaq 100 Index broke a two-day slide. Positive vaccine comments from Pfizer’s CEO, which boosted Asian shares Monday, helped sentiment.

Treasuries were little changed. Elsewhere, the pound strengthened as U.K. Prime Minister Boris Johnson faced a rebellion in Parliament against legislation that would override key elements of the divorce treaty signed with the European Union. Oil was little changed around $37 a barrel.

BREAKING NEWS

CapitaLand subsidiary CapitaLand Treasury has priced its offering of S$800 million 2.90 per cent fixed-rate senior notes due 2032, which will be issued under the S$5 billion euro medium-term note programme established in 2019.

Mainboard-listed BM Mobility is to be delisted after the company failed to comply with conditions to be given an extension of time to resume trading, its judicial managers said in a Singapore Exchange filing on Monday. On July 29, 2019, the company had requested a suspension in the trading of its shares under Listing Rule 1303(3), for suspension in cases where the issuer is unable to continue as a going concern, or unable to demonstrate its ability to do so.

Unitholders of Accordia Golf Trust (AGT) on Monday voted overwhelmingly in favour for the proposed divestment of AGT’s interests in all its golf courses to its sponsor, Accordia Golf. In August, Accordia Golf announced that it was willing to fork out 65.2 billion yen (S$840.5 million) to buy over AGT’s 88 golf courses in Japan, an increase of 3.4 billion yen from the original purchase price offered in June. At the extraordinary general meeting held on Monday morning, 97.55 per cent, or unitholders of some 388 million units, voted in favour of the proposed divestment.

A subsidary of Sinarmas Land has entered into a strategic partnership with Mitbana, a joint-venture fund management company of Mitsubishi Corporation and Surbana Jurong to develop smart and sustainable transit-oriented developments (TODs) in Bumi Serpong Damai (BSD) City, Indonesia, Sinarmas Land and Mitbana said in a joint statement on Saturday. The Sinarmas Land subsidiary is Bumi Serpong Damai (Sinar Mas Land), a property developer in Indonesia which has developed more than 50 projects in the country. Its flagship town development is BSD City, located in Tangerang in Greater Jakarta.

Catalist-listed Singapore eDevelopment is being renamed Alset International, the company announced in a Singapore Exchange filing on Monday night. A special resolution on the name change was passed at an extraordinary general meeting held electronically on Sept 9, with the company then lodging the required statutory returns with the Accounting and Corporate Regulatory Authority of Singapore to effect the change.

The chairmen of UBS and Credit Suisse are exploring a potential merger to create one of Europe’s largest banks. Europe’s banking industry is under pressure to consolidate as the coronavirus pandemic adds to headwinds from negative interest rates. Spain’s CaixaBank and Bankia are exploring a merger to form the largest lender in the country and kickstart consolidation in one of the hardest-hit European economies during the pandemic.

Alibaba Group Holding is in talks to invest US$3 billion into Southeast Asian ride-hailing giant Grab Holdings, according to people familiar with the matter. The Chinese e-commerce giant, a sole investor in the round, will spend a portion of the funds to acquire some of the Grab stock held by Uber Technologies, one of the people said, asking not to be named as the discussions are private.

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

TECHNICAL PULSE

Keppel DC REIT

Analyst: Chua Wei Ren

Recommended Action: Technical BUY

Keppel DC REIT (SGX: AJBU) strong upside is set to continue despite a temporary break below the primary uptrend line starting from March to August 2020

>> Read more technical reports

RESEARCH VIDEOS

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Market Outlook: (PSR) Sembcorp Industries (Initiation), SG REIT Monthly, Asia Technical Outlook, SG Weekly

Date: 14 September 2020

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