Daily Morning Note – 16 Sep 2019

WEEKLY MARKET OUTLOOK WEBINAR

PHILLIP SUMMARY

Over the weekend, drone attacks hit the heart of Saudi Arabia’s oil production facilities in Abqaiq and Khurais claimed by Yemen’s Houthi rebels. Half the country’s oil production was halted due to fire damage and an assessment of the situation is due on Monday, Saudi energy ministry officials said.

National oil company Saudi Aramco is attempting to restore about a third of its crude output by Monday following the attacks, the Wall Street Journal reported Sunday.

Investors also watch for developments on the U.S.-China trade front, with high-level talks between the two economic powerhouses expected in the coming weeks.

China industrial production data for August, expected to be released at 10:00 a.m. HK/SIN, will be watched for clues of the impact of the ongoing trade war between Beijing and Washington. Industrial output growth saw an expected drop to a more than 17-year low in July.



BREAKING NEWS

Singapore’s Aug container throughput fell 0.7% YoY according to the statistics released by the Maritime and Port Authority.

Keppel DC REIT the acquisition of announced two data centre in Singapore and launched an equity fund raising exercise. The proposed acquisitions of 99% Interest in Keppel DC Singapore 4 and 100% Interest in 1-Net North DC, will increase the REIT’s assets under management by 30.7% to $2.58 billion. The Manager intends to fund the acquisitions with proceeds from a fully underwritten equity fund raising exercise of approximately $473.8 million comprising a combination of a private placement and preferential offering, as well as debt.

Oil prices surged more than 15 per cent to their highest level in nearly four months at the open on Sunday after an attack on Saudi Arabia’s oil facilities on Saturday that knocked out more than 5 per cent of global oil supply. Brent crude futures jumped more than 19% to a session high of US$71.95 a barrel at the opening, while US crude futures surged more than 15% to a session high of US$63.34 a barrel.

President Donald Trump, in series of Twitter posts, says the U.S. has reason to believe it knows the culprit of an attack on Saudi oil infrastructure, and is “locked and loaded” depending on verification. He announced on Sunday that he has authorised the release of oil from US strategic reserves after drone attacks cut Saudi Arabia’s crude production by half.

Mainboard-listed engineering group Tee International announced late last Friday that its board has been informed by the company’s controlling shareholder, Phua Chian Kin, that he has received offers for the shares in the company held by him.

Q&M Dental embarks on Asian brand-building journey. It will continue to pursue organic expansion in Singapore, Malaysia, China as well as make regional push into Southeast-Asia within 3 years.

REA Group has fired a shot across the bow of ASX aspirant PropertyGuru, warning the south-east Asian rival it is coming to its home market of Singapore. The warning to PropertyGuru comes as the Paul Bassat-backed property technology company considers a listing in Australia, and underscores the intense competition for market dominance in south-east Asia where growth in real estate is being fueled by a growing middle class and urbanisation.

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

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Market Outlook: : (PSR) Singapore Banking, Clearbridge Health Limited, Micro-Mechanics, Singapore Weekly, US Weekly, China Weekly, Technicals

Date: 09 September 2019

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