Daily Morning Note – 19 July 2019

WEEKLY MARKET OUTLOOK WEBINAR

Register HERE for MONDAY’s 11.15am webinar.

Archived webinars available.

PHILLIP SUMMARY

U.S. stocks closed higher Thursday, recovering from early losses, after New York Federal Reserve President John Williams said the central bank’s wisest strategy is to cut interest rates at the first sign of economic distress when interest rates are already low.

The Dow Jones Industrial Average DJIA ended up 3.12 points at 27,222.97, the S&P 500 SPX rose 10.69 points, or 0.4%, to finish at 2,995.11 and the Nasdaq Composite Index COMP ended 22.04 points, or 0.3%, lower at 8,207.24. All three benchmarks halted a two-session skid.

Investors bid stocks slightly higher following comments from Williams. “When you have only so much stimulus at your disposal, it pays to act quickly to lower rates at the first sign of economic distress,” he said, in a speech at a research conference in New York.


TECHNICAL PULSE

Geely Automobile Holdings Ltd

Recommended Action: Technical BUY

Geely Automobile continued downward pressure may halt soon. The stock has formed a falling wedge formation- a strong bullish reversal pattern.

Read more technical pulse

BREAKING NEWS

US consumer comfort rises to fresh high amid robust job market. The Bloomberg Consumer Comfort Index climbed 0.9 point to 64.7 in the week ended July 14. Americans’ also reported stronger economic expectations, with that monthly gauge advancing to an eight-month high of 55 from 50.5.The weekly index advanced closer to its all-time high amid unemployment near a half-century low and the S&P 500 index surpassing the 3,000 level for the first time. US retail sales and factory output both topped estimates in June and could also be supporting greater optimism about the outlook for the world’s largest economy, while an anticipated Federal Reserve interest-rate cut could also aid growth.

Central banks should ‘act quickly’ during ‘distress’: Federal Reserve’s Williams. Central banks should move quickly to address economic pain when interest rates are already low, a senior Federal Reserve official said on Thursday.Wall Street took the remarks by John Williams – the influential vice-chairman of Federal Reserve’s monetary policy committee – as another sign the Fed is prepared to cut the benchmark lending rate later this month as insurance against an economic slowdown.

Oil falls about 2.5% as US Gulf production returns. Prices were further weighed down by economic concerns as US equities were on track for a third consecutive decline.Brent crude futures settled down US$1.73, or 2.7 per cent at US$61.93 a barrel.West Texas Intermediate crude futures were down US$1.48 a barrel, or 2.6 per cent at US$55.30.

Aims Apac Reit secures master tenant for Tuas property. A global medical device company, headquartered in the United States, will occupy the entire premises of approximately 268,000 square feet, said AA Reit’s manager Aims Apac Reit Management in a regulatory filing.The tenant has committed to a 10-year master lease on a triple net lease basis, with rental escalations every two years during the initial term, and options to renew the lease for up to a further 20 years after the expiry of the initial 10-year term.

Keppel Corp posts 39% fall in Q2 net profit. KEPPEL Corporation on Thursday posted 39 per cent lower net profit at S$153 million for the second quarter ended June, largely due to absence of gains from en bloc sales of development projects. In contrast, the conglomerate recorded S$249 million for its bottom line for the year-ago period, it announced in its financial results. Earnings per share, consequently, declined by the same magnitude of 39 per cent to 8.4 Singapore cents from 13.7 Singapore cents in the corresponding quarter a year ago.

SATS Q1 net slips 14.4% on macro headwinds. A WEAKER global economy put a dent in airport and food services provider SATS’ first-quarter net profit, which fell 14.4 per cent from the same period a year earlier to S$54.7 million.Revenue was S$465.1 million, up 5.8 per cent from the same period a year earlier, though growth in the gateway services and food solutions segments was partially offset by lower cargo revenue. Cargo volume handled in the first quarter was 1.6 per cent lower than in the same period a year earlier, due to “global trade uncertainties”, SATS said.

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

Webinar Of The Week

Market Outlook: :(PSR) 2019-07-15 US weekly, China Weekly, Technical Analysis, Singapore 3Q19 Strategy

Date: 15 July 2019

For more on Market Outlook

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





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.

 

Contact us to Open an Account

Need Assistance? Share your Details and we’ll get back to you

IMPORTANT INFORMATION

This material is provided by Phillip Capital Management (S) Ltd (“PCM”) for general information only and does not constitute a recommendation, an offer to sell, or a solicitation of any offer to invest in any of the exchange-traded fund (“ETF”) or the unit trust (“Products”) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. You should read the Prospectus and the accompanying Product Highlights Sheet (“PHS”) for key features, key risks and other important information of the Products and obtain advice from a financial adviser (“FA“) pursuant to a separate engagement before making a commitment to invest in the Products. In the event that you choose not to obtain advice from a FA, you should assess whether the Products are suitable for you before proceeding to invest. A copy of the Prospectus and PHS are available from PCM, any of its Participating Dealers (“PDs“) for the ETF, or any of its authorised distributors for the unit trust managed by PCM.  

An ETF is not like a typical unit trust as the units of the ETF (the “Units“) are to be listed and traded like any share on the Singapore Exchange Securities Trading Limited (“SGX-ST”). Listing on the SGX-ST does not guarantee a liquid market for the Units which may be traded at prices above or below its NAV or may be suspended or delisted. Investors may buy or sell the Units on SGX-ST when it is listed. Investors cannot create or redeem Units directly with PCM and have no rights to request PCM to redeem or purchase their Units. Creation and redemption of Units are through PDs if investors are clients of the PDs, who have no obligation to agree to create or redeem Units on behalf of any investor and may impose terms and conditions in connection with such creation or redemption orders. Please refer to the Prospectus of the ETF for more details.  

Investments are subject to investment risks including the possible loss of the principal amount invested. The purchase of a unit in a fund is not the same as placing your money on deposit with a bank or deposit-taking company. There is no guarantee as to the amount of capital invested or return received. The value of the units and the income accruing to the units may fall or rise. Past performance is not necessarily indicative of the future or likely performance of the Products. There can be no assurance that investment objectives will be achieved.  

Where applicable, fund(s) may invest in financial derivatives and/or participate in securities lending and repurchase transactions for the purpose of hedging and/or efficient portfolio management, subject to the relevant regulatory requirements. PCM reserves the discretion to determine if currency exposure should be hedged actively, passively or not at all, in the best interest of the Products.  

The regular dividend distributions, out of either income and/or capital, are not guaranteed and subject to PCM’s discretion. Past payout yields and payments do not represent future payout yields and payments. Such dividend distributions will reduce the available capital for reinvestment and may result in an immediate decrease in the net asset value (“NAV”) of the Products. Please refer to <www.phillipfunds.com> for more information in relation to the dividend distributions.  

The information provided herein may be obtained or compiled from public and/or third party sources that PCM has no reason to believe are unreliable. Any opinion or view herein is an expression of belief of the individual author or the indicated source (as applicable) only. PCM makes no representation or warranty that such information is accurate, complete, verified or should be relied upon as such. The information does not constitute, and should not be used as a substitute for tax, legal or investment advice.  

The information herein are not for any person in any jurisdiction or country where such distribution or availability for use would contravene any applicable law or regulation or would subject PCM to any registration or licensing requirement in such jurisdiction or country. The Products is not offered to U.S. Persons. PhillipCapital Group of Companies, including PCM, their affiliates and/or their officers, directors and/or employees may own or have positions in the Products. Any member of the PhillipCapital Group of Companies may have acted upon or used the information, analyses and opinions herein before they have been published. 

This advertisement has not been reviewed by the Monetary Authority of Singapore.  

 

Phillip Capital Management (S) Ltd (Co. Reg. No. 199905233W)  
250 North Bridge Road #06-00, Raffles City Tower ,Singapore 179101 
Tel: (65) 6230 8133 Fax: (65) 65383066 www.phillipfunds.com