Daily Morning Note – 2 July 2020

PHILLIP SUMMARY

Asian stocks looked set to follow U.S. shares higher with modest gains after positive vaccine developments and better-than-expected manufacturing data tempered concern over a jump in coronavirus cases. Treasuries and the dollar fell.

Futures rose in Japan and Australia, with Hong Kong due to reopen after a holiday. U.S. futures opened little changed after the S&P 500 rose for a third day and the Nasdaq Composite jumped to a record. An early trial of an experimental shot from Pfizer Inc. and BioNtech SE showed it was safe, and prompted patients to produce antibodies. Earlier, equities came off session highs after California and Arizona reported their biggest daily virus case increases and Houston’s intensive-care units exceeded full capacity.

BREAKING NEWS

KOUFU Group has proposed to acquire Deli Asia, Delisnacks, Dough Culture and Dough Heritage for about S$22 million. The four companies make up the Deli Asia group, one of Koufu’s biggest suppliers of fried food and dough products, said the mainboard-listed firm, which operates and manages food courts, coffee shops and a mall. The Koufu group will fund the purchase price using its internal resources, including net proceeds received from the company’s initial public offering.

THE manager of Ascendas Real Estate Investment Trust (A-Reit) on Wednesday announced an agreement to buy a new logistics property in Sydney, Australia, for A$23.5 million (S$21.1 million). The acquisition will be accretive to A-Reit’s distribution per unit. A-Reit has purchased a 26,632 sq m piece of freehold land in the Yennora suburb of Sydney, an industrial precinct, from an entity called Larapinta Project. Larapinta will also develop the property, which is expected to be completed in the second quarter of 2021.

ESR-REIT has secured two new tenants at 8 Tuas South Lane. Collectively, the new tenants have leased 284,700 square feet (sq ft) at the property, the industrial Reit’s (real estate investment trust) manager said on Tuesday. The tenants are global logistics provider Pacific Integrated Logistics, and Royal’s Engineering & Trading (S), a local company in the construction industry specialising in plumbing and electrical works.

WITH international travel still largely on hold, the Singapore Airlines (SIA) group has stored four more aircraft Down Under, taking the number of planes parked in Australia to 22. In recent days, the group has sent two double-decker Airbus A380s belonging to the parent airline and two Boeing 787-8 planes owned by budget arm Scoot to the Asia Pacific Aircraft Storage facility in Alice Springs, The Business Times has learnt.

COAL producer Geo Energy Resources on Tuesday said it has engaged legal advisers in response to news reports about a potential dispute over a proposed deal in Indonesia. Media outlets reported that the current or former ultimate controlling shareholders of Titan Infra Energy (TIE) filed a legal claim in the Jakarta courts against, among others, TIE and its major subsidiaries, Victor Tanuadji, as well as two Geo Energy subsidiaries – Geo Ventures Global (GVG) and Geo Coal International (GCI) – for acting against the interests of TIE shareholders.

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

TECHNICAL PULSE

Singapore Exchange Ltd

Analyst: Chua Wei Ren

Recommended Action: Technical SELL

Singapore Exchange Ltd (SGX: S68) had a strong bearish runaway gap on the 28th of May, the selling should persist until the well-supported $8.00 level. However, recent technicals suggest that this psychological support may be broken soon.

>> Read more technical reports

RESEARCH VIDEOS

Webinar Of The Week

Market Outlook: (PSR) Yoma Strategic Holdings (Initiation), SG REITs Sector and Phillip Singapore Weekly

Date: 22 June 2020

For more on Market Outlook

Phillip Research in 3 minutes: #23- Yoma Strategic Holdings; Initiation

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Read the research report(s), available through the link(s) above, for complete information including important disclosures Important Information





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