Daily Morning Note – 17 June 2019

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YOUR PHILLIP SUMMARY

Stocks in Asia poised to trade mixed on Monday as investors await a U.S. Federal Reserve meeting set to happen later in the week stateside.

Futures pointed to a lower open for shares in Japan. The Nikkei futures contract in Chicago was at 21,030, as compared to the benchmark Nikkei 225′s last close at 21,116.89.

Stocks in Australia, on the other hand hand, were set to see gains. The SPI futures contract was at 6,565.0, as compared to the ASX 200′s last close at 6,554.00.

Data released last Friday showed China’s industrial output growth in May slowing to a more than 17-year low, widely below expectations. That figure came in at 5%, as compared to expectations of a 5.5% growth from a year earlier by analysts polled by Reuters.


RESEARCH REPORT

Singtel Limited – Investor Day 2019

Recommendation: BUY (Maintained), Target Price: S$3.66

Last Done: S$3.33 Analyst: Alvin Chia

– Regional associates are improving. Telkomsel and Bharti Airtel expect
competition to stabilise. Globe says regulation is a hurdle in rolling-out new
base stations. AIS is anticipating subscriber growth.

– Heavy investments, competitive pricing and sports content helped Optus gain
market share.

– Window of opportunity for the 4th operator in Singapore has narrowed
considerably.

– There are plans to monetise the digital business in the next three years.

– Maintain BUY with unchanged target price of S$3.66. No changes to our
estimates. Singtel remains our top pick in the telecommunication sector.

BREAKING NEWS

Britain’s next prime minister clashed over Brexit strategy at their first debate on Sunday but the frontrunner, Boris Johnson, dodged the confrontation.

A nationwide Fox News poll released on Sunday shows President Donald Trump trailing former vice-president Joe Biden and no fewer than four other Democratic contenders as early campaigning for the 2020 election begins to gain steam.

Huawei‘s American chip suppliers, including Qualcomm and Intel, are quietly pressing the US government to ease its ban on sales to the Chinese tech giant, even as Huawei itself avoids typical government lobbying, people familiar with the situation said.

MERCURIUS Capital Investment is proposing to raise S$6 million by placing out shares to 12 individuals, including some existing shareholders.

Allied Tech on Friday said it has appointed PwC as its special auditor to investigate the circumstances surrounding certain transactions, including the placing of some S$33 million of funds with law firm JLC Advisors under escrow that reportedly went missing.

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

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 Important Information





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