Daily Morning Note – 16 October 2018

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YOUR PHILLIP SUMMARY

Major benchmarks closed lower Monday as tech weakness prevented stocks from holding on to earlier gains. Investors also remained cautious following last week’s equity-market rout, sparked in part by rising U.S. interest rates.

Nasdaq was the worst performer of the three after large-cap tech shares including Apple Inc. AAPL, -2.14% Alphabet Inc. GOOGL, -1.62% GOOG, -1.61% Microsoft Corp. MSFT, -1.80% and Amazon.com Inc. AMZN, -1.55% all fell more than 1%.

Other key events this week:

  • China’s new yuan loans may have risen to 1.36 trillion yuan ($196 billion) in September from August’s 1.28 trillion yuan as officials sought to buoy economic growth. On Tuesday, consensus is for CPI to pick up to 2.5 percent growth and PPI to slow to 3.6 percent.
  • Third-quarter GDP for China comes Friday, with headline growth forecast to slow to 6.6 percent year on year from 6.7 percent, in addition to last month’s retail sales and factory output.
  • Minutes from the Federal Reserve’s latest policy meeting are due on Wednesday, with investors focused on projections for further interest rate rises.

Source: MarketWatch, Bloomberg

BREAKING NEWS

NETS on Monday launched PayCollect, an online billing and collections service for businesses to issue invoices and collect payments electronically.

Asian Healthcare Specialists disclosed on Monday that it has entered an investment agreement with Vanda 1 Investments, which is managed and controlled by Temasek Holdings unit Heliconia Capital Management.

A 90 per cent-owned unit of Rex International Holdings will divest its 20 per cent participating interest in the Barents Sea licence PL850 to an external third party.

Starhub chief executive officer Peter Kaliaropoulos said the company is looking to pare costs even further by sharing infrastructure after announcing he would trim the company’s workforce by about 12 per cent.

Chinese biotech firm Innovent Biologics is looking to raise up to US$422 million in its Hong Kong IPO, according to sources.

Hyflux has obtained in-principle approval from Maybank for an extension of the Oct 15 deadline by which it should find a buyer for its Tuaspring integrated water and power plant and execute a binding purchase agreement.

8Telecom International Holdings entered into an agreement with Tai Yang Technology on Monday after the market closed to formally terminate an earlier announced share subscription agreement.

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

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