Daily Morning Note – 19 September 2018

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YOUR PHILLIP SUMMARY

In the US, stocks rose on Tuesday as investors perceived the new tariffs as incremental with little impact on the US economy because of the staggered introduction of the tariffs. President Trump’s new tariffs on $200 billion Chinese goods will have 10% tax set to take effect next Monday on range of Chinese imports and the tax will rise to 25% at the end of 2018.

The trade war intensified as China retaliated by imposing tariffs on $60 billion of US goods which will take effect on 24 September 2018. Beijing still remains open to negotiate an end to the trade war.


RESEARCH REPORT

Combine Will International Holdings Ltd – Diversification out of China

Analyst: Alvin Chia

– Cost savings from cheaper labour cost in Indonesia

– Diversifying out of China gives Combine Will an edge over other vendors

– The current share price of $1.05 represents a PE of 10.2 based on 1H18
annualised earnings


TECHNICAL PULSE

Genting Sing Ltd – Daily timeframe – Bullish

– Price might be forming a bullish divergence here with the hammer rejection off
the 1.00 psychological round number suggesting for a rebound higher.

– Expect price to reverse higher next to test the 1.10 resistance area followed by
1.15.


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

BREAKING NEWS

China announced it will take retaliatory tariff action against US$60 billion of US goods, sharply escalating the trade war as the Trump administration considers imposing duties on virtually all Chinese imports.

U.S. Treasury yields rose sharply Tuesday after the United States and China each slapped a new round of tariffs on each other, with the 10-year yield hitting its highest level since May.

PCI Ltd’s controlling shareholder, Chuan Hup Holdings Ltd. has been approached by a third party about a potential transaction in connection with a potential transaction in relation to the securities of the company.

OUE Lippo Healthcare plans to acquire stakes in First Reit, and its manager Bowsprit for S$142m.

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

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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