Daily Morning Note – 16 July 2019
WEEKLY MARKET OUTLOOK WEBINAR
Register HERE for MONDAY’s 11.15am webinar.
Archived webinars available.
PHILLIP SUMMARY
U.S. stocks eked out another round of records Monday, after closing at all-time highs last week, as investors digested second-quarter results from Citigroup and awaited a wave of second-quarter earnings.
The Dow Jones Industrial Average gained 27.13 points, or 0.1%, to set a new closing record of 27,359.16, the S&P 500 index added 0.53 point, or less than 0.1%, to end at 3,014.30. The Nasdaq Composite Index rose 14.04 points to reach 8,258.19, a 0.2% increase. All three major indexes scored intraday records in early activity, turned lower and then edged back into positive territory in late trade.
Citigroup Inc. said its second-quarter income rose 7% from a year ago, with profit at $4.8 billion, up from $4.49 billion a year ago and earnings come in at a better-than-expected $1.95, compared against consensus analysts’ expectations for $1.81 a share.
TECHNICAL PULSE
American Airline
Recommended Action: Technical LONG
American Airline’s bearish fall has come to a halt when prices broke out of the rising wedge since the start of June 2019. With that, the stock’s bullish trajectory is confirmed.
Kimberly Clark
Recommended Action: Technical LONG
Kimberly-Clark’s has been rising steadily and based on the Elliott wave count, the stock is leaving its 4th wave correction on a strong note when the stock’s price rebounded near the previous support at 132.69. This indicates a strong bullish movement.
Ford Motor
Recommended Action: Technical LONG
Ford Motor’s bullish rise since the start of Jan 2019 has hit some flats recently. However, based on the technicals, Ford may be breaking new highs again for 2019.
BREAKING NEWS
US-China trade officials to talk again ‘this week’: official. Top US and Chinese trade negotiators are due to speak by telephone in the coming days, but no face-to-face talks have been scheduled yet, US Treasury Secretary Steven Mnuchin said on Monday.That would be the second call in two weeks by senior officials from Washington and Beijing as the thaw in fraught trade negotiations continues.
China’s economy sputters with 6.2% growth in Q2. The world’s second-largest economy grew 6.2 per cent from April-June, its slowest growth rate on record and down from 6.4 per cent registered in the first three months of the year. “Uncertainty caused by the US-China trade war was an important factor and we think this will persist, despite the recent tariff truce,” said Tom Rafferty, an economist for China at The Economist Intelligence Unit.
SGX considers volatility controls for pre-open and pre-close trading. The proposed controls could be introduced as early as next year, depending on the feedback received.
Hyflux ‘progressing’ towards Utico deal for S$400m lifeline. HYFLUX’S potential white knight Utico is looking to take an 88 per cent stake in the troubled water treatment firm through S$300 million in equity injection and S$100 million in shareholder’s loan. Hyflux first mentioned Utico’s potential investment of S$400 million on May 3 but both parties are still working towards a binding agreement.
Suntec Reit acquires Adelaide office building. SUNTEC Reit has expanded its presence in Australia after acquiring the entire stake in a freehold Grade A office building in Adelaide, South Australia for A$148.3 million (S$141.4 million). This is its first foray into Adelaide. ARA Trust Management (Suntec), manager of the real estate investment trust (Reit), said in a media statement issued on Monday that the 12-storey property has an approximate net lettable area of 282,000 square feet and had undergone several rounds of refurbishment.
Koh Brothers unit snags S$668.2m PUB job. A SUBSIDIARY of Catalist-listed Koh Brothers Eco Engineering has bagged a S$668.2 million contract from national water agency PUB, boosting its parent company’s order book to over S$1 billion. The contract, awarded to Koh Brothers Building & Civil Engineering (KBCE) and its joint venture (JV) partner China Harbour (Singapore) Engineering, is for the construction of influent pumping stations at Tuas Water Reclamation Plant (TWRP) later this month.
Source: SGX Masnet, The Business Times, Bloomberg, Channel NewsAsia, Reuters, PSR
Webinar Of The Week
Market Outlook: :(PSR) 2019-07-15 US weekly, China Weekly, Technical Analysis, Singapore 3Q19 Strategy
Date: 15 July 2019
Clients of Phillip Securities can keep updated with Country Strategy and Singapore Sector Reports by logging into: www.poems.com.sg > STOCKS > Research
| Disclaimer |
| 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. |
| 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. |
