Daily Morning Note – 16 April 2018

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RESEARCH REPORT

Offshore & Marine Monthly – Extended soft conditions
Analyst: Chen Guangzhi
– Banks as de facto owners of vessels prolonging the supply imbalance
– Upstream production activities recover modestly but still depressed
– Offshore support vessels market is still in a predicament
– The rally of oil price will speed down as glut is coming back

Singapore Consumer Monthly – Set for stronger growth in 2018
Recommendation: Overweight (Maintained), Analyst: Soh Lin Sin
– Rosier picture in Hong Kong, Singapore, Philippines and Vietnam; Impending
elections in Malaysia, Indonesia and Thailand could reignite consumer
sentiment
– Thailand’s beer demand declines for the 5th month post-excise tax in Sep-17;
Will review assumptions for ThaiBev after release of March and April data
– FNN should benefit from the fast-growing dairy market in Vietnam
– We maintained our OVERWEIGHT view on Singapore Consumer Sector


TECHNICAL PULSE

Chip Eng Seng Ltd – Daily timeframe – Bullish
– The recent bullish follow through especially the bullish break on 13/04/18
succeeded in closing price above the 1.00 psychological round number and
pullback line signals the start of the next wave higher.
– Expect the uptrend to continue for price to test the 1.040 resistance area followed
by 1.070.

For more information and additional disclosures, refer to the link here.

BREAKING NEWS

U.S. equity index futures rose on Sunday as financial market trading resumed for the first time since the United States, Britain and France hit Syria with missile strikes in retaliation for a suspected poison gas attack. Russian President Vladimir Putin, in a phone call to his Iranian counterpart, warned that the world will see ‘chaos’ if Syria is attacked again.

China aims to establish a free trade zone in Hainan by 2020 and will encourage multinationals to set up their international and regional headquarters there, as part of plans to open up the province’s economy to foreign investors.

Malaysia’s longest-serving prime ministerDr Mahathir Mohamad has been announced as a candidate for the Langkawi parliament seat in his home state of Kedah in the general elections.

The Industrial and Commercial Bank of China’s Singapore branch (ICBC) is launching investment banking services here. On the other hand, Deutsche Bank has been asked by European Central Bank supervisors to calculate the potential costs of winding down its investment banking operations.

United Overseas Bank (UOB) has entered into an agreement with Beijing-based financial technology firm Pintec Technology Holdings to set up a joint venture company, Avatec.ai, that will offer credit services and solutions, primarily in South-east Asian countries.

Singapore’s competition commission has announced interim measures for the Grab-Uber deal while it continues to investigate the acquisition. It also said the Uber platform will terminate on May 7.

Also in Singapore, Rivercove Residences saw nearly 80 per cent of its 628 units sold at an average price of S$965 psf for the executive condominium (EC)’s first ballot and booking exercise, which has been successfully completed.

Mainboard-listed Delfi Limited on Friday said it has entered an agreement to purchase the licence to the Van Houten brand of chocolates and cocoa products from Hershey Singapore for US$13 million.

Datapulse’s board called dissident shareholders’ proposal to declare an interim dividend of 20 Singapore cents per share before June 14 if they gain board control “an eleventh-hour manoeuvre to solicit support at the coming EGM” in a Singapore Exchange (SGX) announcement on April 15.

Memstar Technology has been reminded by the Singapore Exchange (SGX) to arrange for its de-listing. The company said that it will keep shareholders updated on any material developments.

Source: SGX Masnet, The Business Times, ChannelNewsAsia, Bloomberg, Phillip Securities Research

Clients of Phillip Securities can keep updated with Country Strategy and Singapore Sector Reports by logging into: www.poems.com.sg > STOCKS > Research

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

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