Daily Morning Note – 2 Dec 2019



Stocks in Asia were set for a muted start to December as investors weighed data on China’s economy that showed a bright spot for manufacturing and the latest news on the trade front. Australian bond yields rose.

S&P 500 futures edged up and contracts pointed marginally higher in Tokyo and Hong Kong. The S&P 500 Index dipped on Friday. On U.S.-China trade: the Global Times reported that China’s government wants tariffs to be rolled back as part of the phase one trade deal with the U.S. Oil recovered a sliver of Friday’s slide after Iraq said OPEC and its allies will consider deeper production cuts.

Indian businesses are worried about repercussions should they criticize Prime Minister Narendra Modi’s administration, billionaire Rahul Bajaj said in a rare display of a corporate leader expressing reservations about the government publicly.


Underpinned by a global hunt for yield, Singapore’s real estate investment trusts are having a bumper year in deal-making as well as fundraising. The mantra that bigger is better will continue to drive capital market activity in the sector, analysts say.

A CONSORTIUM comprising Far East Organization, Sekisui House and Sino Group has sold 92 units at One Holland Village Residences. These units were sold between Nov 21, when preview sales at the 296-unit project began, and 6pm on Dec 1.

MAPLETREE Investments has successfully closed a new Australian private commercial trust at about A$654 million (S$608 million) in total fund equity. MASCOT Private Trust (MASCOT) is fully invested at closing and owns 10 Grade A office assets that are strategically located in key Australian gateway cities – Sydney, Melbourne, Adelaide, Brisbane and Perth – with a total asset value of about A$1.4 billion.

Black Friday hit a record US$7.4 billion in US online sales as many shoppers spent the day clicking instead of lining up to buy.

Apple and Microsoft are leading the record market rally in 2019. The two have amassed a collective $819 billion in market cap this year, leading the Dow Jones Industrial Average to all-time highs. If those gains were stripped from the Dow, the blue-chip index would be nearly 1,100 points lower than its current level, according to data compiled by CNBC last week.

The Dow slipped 112.59 points, or 0.40% to close at 28,051.41. The S&P 500 pulled back 0.40% to 3,140.98. The Nasdaq Composite fell 0.46% to end the day at 8,665.47. Stocks fell in a shortened trading session but still posted their best monthly performance since June.

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


CapitaLand Limited – Investor Day 2019

Recommendation: BUY (Maintained); Last done: S$3.68

TP: S$4.20; Analyst: Natalie Ong

– Deleveraging on track – CAPL achieved their 2019 divestment target of S$3bn, which is aimed at helping the group lower post-ASB acquisition gearing of 0.73x to 0.64x by end-2020

– Value-driven business model – investment decisions guided by their Business Strategy of Scale, Focus, Balance, Agility

– Target to achieve double-digit return on equity across cycles via three growth engines

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Market Outlook: : (PSR) Singapore Exchange Limited, Comfort Delgro, SATS & REITs Monthly

Date: 25 November 2019

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