Daily Morning Note – 16 Aug 2019
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PHILLIP SUMMARY
Stocks were mostly higher Thursday a day after recession fears caused one of the year’s worst selloffs.
Better-than-expected earnings from Walmart (NYSE:WMT) and a decent gain for Boeing (NYSE:BA) helped improve traders’ moods.
The S&P 500 rose 0.29%. The Dow Jones industrials added 0.39%. But the Nasdaq Composite suffered a small loss, mostly because of weakness in Cisco Systems (NASDAQ:CSCO), Netflix (NASDAQ:NFLX), Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT).
Oil prices were lower, with WTI crude falling 76 cents to $54.47 a barrel. Brent oil futures were off $1.41 to $58.07. Gold futures continued to climb, with the December contract settling at $1,531.10 an ounce.
The 10-2 Year Treasury Yield Spread widened slightly, although interest rates continued to fall. The 10-Year Treasury yield was 1.51%. The 2-Year yield was 1.484%.
BREAKING NEWS
The selloff on Yangzijiang Shipbuilding stock showed little signs of easing on Thursday following the lifting of a trading halt that was instituted on Aug 8. Shares in China’s largest non-state owned shipbuilder plunged 18 cents, or 17.3 per cent, to S$0.86, on hefty turnover of 129.3 million units – taking the stock to the top of the most actives list on the Singapore bourse.
UPSTREAM oil and gas firm KrisEnergy has filed for a six-month debt moratorium to seek court protection from creditors’ legal action while it restructures its debt totalling some US$476.8 million, it said late on Wednesday night. Keppel Corporation, as a creditor and shareholder of KrisEnergy, has also issued a statement confirming it supports the application and KrisEnergy’s management in formulating a restructuring plan.
The manager of CapitaLand Retail China Trust on Thursday announced the appointment of Lucas Loh, president, China, of CapitaLand group, as non-executive non-independent director and chairman of the executive Committee. Mr Loh, 53, oversees the business in China, a core geographical market for the group.
THE longtime group chief financial officer (CFO) of ComfortDelGro Corporation, Choo Chek Siew, will retire at the end of next month after serving in the role for 16 years. The 69-year-old veteran’s last day at the company will be Sept 30, the transport giant said on Wednesday evening.
Source: SGX Masnet, The Business Times, Bloomberg, Channel NewsAsia, Reuters, PSR
TECHNICAL PULSE
MTR Corp Ltd
Recommended Action: Technical BUY
MTR Corporation has broken into a ranging mode when the price had successive breaks below the uptrend line. The continued downward pressure has seen some light on Thursday as the stock enjoyed a spike at the open.
RESEARCH REPORTS
Dasin Retail Trust – Great step towards DPU uplift
Recommendation: ACCUMULATE (Maintained), Last Done: S$0.87
Target Price: S$0.94, Analyst: Phillip Research Team
– Revenue came in slightly below our, exacerbated by the depreciation of the RMB against SGD.
– Portfolio occupancy crept up 80bps from 97.6% to 98.3%. However, higher operating costs depressed NPI margins.
– The proposed acquisition of Domen Metro Mall will lift underlying DPU by 12.1%.
– Maintain ACCUMULATE with unchanged TP of S$0.94.
Webinar Of The Week
Date: 05 August 2019
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