Daily Morning Note – 18 March 2020

WEEKLY MARKET OUTLOOK WEBINAR

PHILLIP SUMMARY

U.S. stock futures dropped and the yen advanced in early Wednesday trading in Asia, retracing some of the previous day’s moves as traders continue to test where fundamental valuations lie amid rapidly changing news flow.

Australian bond yields climbed after a tumble in Treasuries Tuesday. At one point rates on U.S. 10- and 30-year bonds shot up more than 36 basis points, their biggest one-day increases since 1982. Futures were higher in Japan and Hong Kong after the S&P 500 Index gained 6%, though Australian shares opened lower. As the Trump administration moves toward a big fiscal package, Treasury Secretary Steven Mnuchin warned the coronavirus could send U.S. unemployment up to 20% without government intervention.

BREAKING NEWS

SINGAPORE Airlines (SIA) on Tuesday announced a fresh round of flight cuts as travel restrictions continue to surface amid the global Covid-19 pandemic. The latest suspensions mean that the carrier will operate at only half the capacity that had been originally scheduled up to end-April, said the carrier in a statement. SIA is expecting to make further cuts to its capacity given the growing scale of the border controls globally and its “deepening impact” on air travel.

MOODY’S Investors Service has placed its A3 issuer rating on mainboard-listed Genting Singapore on review for a downgrade, the credit rating agency said in a research note on Monday. The review follows Malaysia’s announcement that it is restricting movement nationwide for two weeks from March 18 to fight the Covid-19 pandemic.

SASSEUR Real Estate Investment Trust’s (Sasseur Reit) manager on Tuesday reported “encouraging” first-day reopening sales at its outlet malls reopened since they were shuttered amid the coronavirus outbreak. The four malls in China brought in sales totalling 11.5 million yuan (S$2.3 million) on their respective reopening dates, a 129 per cent increase from the corresponding dates a year ago.

HOSPITALITY group Banyan Tree Holdings has formed a 50-50 joint venture (JV) with Myanmar Treasure Hotel & Resort Group (Htoo Hospitality) to initially manage 17 of the latter’s hotel properties. Htoo Hospitality is the hospitality division of Myanmar business tycoon U Tay Za’s Htoo Group of Companies. It currently owns 15 hotels and resorts, with two in the pipeline.

MAGNUS Energy Group saw its net loss narrow to S$1.2 million for its second quarter ended Dec 31, 2019, from S$1.9 million a year ago. This came as the oil and gas firm saw a drop in its cost of sales and a rise in other operating income for the quarter, according to its financial results released on Tuesday just after midnight

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

RESEARCH REPORTS

Technical Analysis: Singapore Banks -The banks had a massive sell-off in a similar fashion

Analyst: Chua Wei Ren

– The 3 largest banks in Singapore was not spared the massive sell-off in early March 2020.

– Technical analysis suggests that the sell-off is far from over given the momentum.

– Wave analysis indicates that the bearish impulse is going strong on a larger time frame.

– The initial bearish correction has now turn into an impulsive leg. Any form of rebound is to be taken as a correction, more selling is expected.

– Our analysis of the 3 banks below, will provide the technical support or rebound levels.

Read more technical reports

HK Reports – Read up on our Hong Kong reports here

RESEARCH VIDEOS

Webinar Of The Week

Market Outlook: (PSR) City Development Limited, CapitaLand Limited, Dasin, EC World, REITS & Banking Monthly, SG Weekly & Technicals

Date: 16 March 2020

For more on Market Outlook

Phillip Research in 3 minutes: #18 – Singapore Budget 2020

Updates summarised in 3 minutes

For more videos on Phillip in 3 Mins

Read the research report(s), available through the link(s) above, for complete information including important disclosures Important Information





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