Daily Morning Note – 18 Oct 2019

WEEKLY MARKET OUTLOOK WEBINAR

PHILLIP SUMMARY

Asian stocks looked set for a cautious start Friday ahead of a slew of economic data coming from China. U.S. equities posted modest gains amid mostly positive earnings reports. Futures edged up in Tokyo, were lower in Australia and flat in Hong Kong.

The S&P 500 Index fluctuated for most of Thursday around the 3,000 level, as Morgan Stanley became the latest big bank to defy expectations for weak growth. Doubts over whether a Brexit deal can win approval whipsawed the pound, while treasuries edged lower and the dollar declined.

The focus Friday moves to the latest reading on the health of China’s economy with the release of third-quarter GDP, September industrial production and retail sales data. Elsewhere, oil turned positive hours after a U.S. government report showed large declines in fuel inventories, outweighing a bigger-than-expected crude build.



BREAKING NEWS

SINGAPORE Press Holdings (SPH) will cut 5 per cent of staff from its media group, it said on Thursday, as the company posted a 23.4 per cent decline in net profit for the full year ended Aug 31.

KEPPEL Corp’s third-quarter net profit fell 30 per cent to S$159 million from a restated S$227 million a year ago, led by the absence of gains from divestment of a commercial development in Beijing and higher net interest expense.

SINGAPORE regulators are poised to award four 5G telecom licences, two more than previously planned, as Minister for Communications and Information S Iswaran called for bids for the high-tech new spectrum on Thursday.

The leading American maker of electronic cigarettes, Juul Labs, announced on Thursday it is suspending sales of some flavoured vaping products in the United States, as the US government prepares a nationwide ban.

CapitaLand, Razer clinch first enterprise 5G grants by non-telcos.

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

RESEARCH REPORTS

SREITs Monthly – Monthly Tracker: October 2019

Recommendation: NEUTRAL (Maintained), Analyst: Natalie Ong

– FTSE S-REIT index return gained 1.3% MTD and 25.1% YTD. Strongest gains were from the Industrial sector (+3.7% MTD) and weakest showing at the Healthcare (-0.9% MTD).

– Performance in September: Best – Keppel DC REIT (+13.5%), Worst – MapleTree North Asia Trust (-7.5%)

– Sector yield spread compressed MoM to 245bps, -1.5 standard deviation (s.d.) over the benchmark 10-year SGS (10YSGS) yield.

– 3-month SOR fell 40bps to 1.57% at 16 October 2019 versus 1.75% last month. Elevated P/NAVs expected to persist in the lower interest rate environment.

– Remain NEUTRAL on S-REITs sector. Sub-sector preferences: Office and Hospitality.

Read more research reports

Webinar Of The Week

Market Outlook: : (PSR) 2019-10-14 SG Q4 Strategy, Phillip Absolute 10, China Strategy, Technicals

Date: 14 October 2019

For more on Market Outlook

Phillip Research in 3 minutes: #14- Singapore Banking Sector

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





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.