Daily Morning Note – 19 June 2018

WEEKLY MARKET OUTLOOK WEBINAR

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Archived webinars available.

RESEARCH REPORTS

ETF Model Portfolio – May 2018 Update
Analyst: Pei Sai Teng
– The delay in the formation of the Italian government rattled European markets last month and
“italexit” risk remain high.
– G7 summit ended early for Trump as he visited Singapore for the Trump-Kim Summit.
– Trade war risk turned higher as U.S. slapped tariffs on Chinese goods and China retaliating with
tariffs on U.S. products.

Land Transport Sector – Surge in TDVL issued portends a Taxi revival
Analyst: Richard Leow
– Positive data point for TDVL issued
– Maintain Overweight on the Land Transport sector, on the positive industry restructuring and the
worst being over for the Taxi industry
– Maintain Accumulate on ComfortDelGro; unchanged target price of $2.69


TECHNICAL PULSE

CityDev Ltd – Daily timeframe – Bullish
– There seemed to be a RSI bullish divergence forming after price closed strongly on 18/06/18
despite breaking a new 11-month low.
– Expect price to rebound higher to test the 11.78 resistance area followed by 12.33.

For more information and additional disclosures, refer to the link here.

BREAKING NEWS

Global stocks ended lower on Monday as investors eyed an escalating trade dispute between the United States and China while oil prices rose on bets that an OPEC production increase would be smaller than expected. The Dow Jones Industrial Average fell 0.41% to 24,987.47, the S&P 500 lost 0.21% to 2,773.87 and the Nasdaq Composite added 0.01% to 7,747.03. The energy sector was the S&P 500’s second most positive boost with a 1.1% increase.

Anxiety about global trade spurred demand for currency safe havens, such as the Japanese yen and Swiss franc. The yen strengthened 0.09% versus the greenback. The Swiss franc notched a 0.3% increase against the greenback and a 0.2% gain versus the euro.
The U.S. Senate passed a $716 billion defense policy bill on Monday, backing President Donald Trump’s call for a bigger, stronger military but setting up a potential battle with the White House over Chinese telecommunications firm ZTE Corp.

GameStop Corp is holding talks with private equity firms about a potential transaction after receiving buyout interest.

German authorities arrested current Audi Chief Executive Rupert Stadler as part of a probe into emissions test cheating.

Singapore home sales jumped to the highest in nine months in May, underscoring signs the city-state’s property market is recovering.

Astrea IV’s Class A-1 bonds has risen to 102.9 on its first trading day.

Envictus International Holdings is undertaking a rights cum warrants issue of up to 113.5 million new shares at an issue price of S$0.16 for each rights share with up to 113.5 million free detachable warrants.

Kingsmen Creatives has been awarded contracts worth S$29 million for fabrication and construction works for the Formula 1 Singapore Grand Prix.

Soilbuild Group Holdings has won the tender for the collective sale of the 89-unit residential development along Balestier Road, Kemaman Point, with a bid of S$143.88 million.

Lian Beng Group has snagged a contract worth S$95.8 million for the construction of a condominium at Flora Drive.

Sysma Holdings has secured a S$37.7 million contract with Oxley Amber for the construction of a residential development in Pasir Panjang.

No Signboard Holdings has acquired the remaining 20% stake in Danish Breweries for S$400,000.

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

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