Daily Morning Note – 20 March 2020
WEEKLY MARKET OUTLOOK WEBINAR
PHILLIP SUMMARY
U.S. stock futures slid in early Asian trading Friday after a another volatile session on Wall Street and the dollar added to its gains, pointing to unrelenting stress even as policy makers strengthen efforts to contain the coronavirus crisis.
Futures were higher in Hong Kong and Australian stocks gained after the S&P 500 Index closed slightly higher Thursday. Japan markets are shut Friday for a holiday. The dollar continued its charge higher as the recent dash for cash showed little sign of easing, while Treasury yields dipped. Crude dipped after a record surge Thursday; U.S. President Donald Trump said he would get involved in the oil price standoff at the “appropriate time.”
BREAKING NEWS
MALAYSIA-BASED Top Glove Corporation on Thursday posted a 9.3 per cent rise in net profit to RM115.7 million (S$38 million) for its second quarter ended Feb 29, 2020, from RM105.8 million a year ago. This came on the back of higher revenue from stronger nitrile glove sales, a slight rise in other operating income and narrowed taxation.
MICRO-MECHANICS (Holdings) has reduced operational activities at its factories in Penang and California to a minimum due to government measures to combat the spread of the novel coronavirus, it said on Thursday. Malaysia’s movement control order, which lasts from March 18 to March 31, includes a shutdown of business premises except for those in essential services.
MAINBOARD-LISTED Soilbuild Construction Group has won a contract from Soilbuild Reit to build a warehouse development in Pioneer. The contract will either be worth approximately S$75.8 million based on a plot ratio 1.0 design scheme for a contract period of 14 months, or around S$78.2 million upon approval from the relevant authorities to convert the plot ratio to a 1.32 design scheme for a contract period of 16 months, said the group in a statement on Thursday.
CATALIST-LISTED precision engineering firm Allied Technologies is closing its operations in Malaysia from March 18 to March 31 to comply with the government’s movement control order. In a bourse filing on Thursday, the company said that its Malacca and Johor Bahru offices will remain contactable, while all business support functions will be run from its main office in Singapore.
BREADTALK Group has launched a consent solicitation exercise (CSE) to get noteholders’ approval to waive a technical default for S$100 million 4 per cent fixed-rate notes due 2023, the company said on Wednesday. The food and beverage player is seeking to waive breaches of the consolidated tangible net worth covenant and the consolidated total borrowings to consolidated tangible net worth covenant.
Source: SGX Masnet, The Business Times, Bloomberg, Channel NewsAsia, Reuters, PSR
TECHNICAL PULSE
Tencent Holdings Ltd
Recommended Action: Technical BUY
Tencent (HK: 700) sell-off near 420.00 signals an end of the intermediate phase of the impulse 5-wave momentum. However, based on our technical and wave analysis, the stock will see a short term rebound.
RESEARCH REPORTS
China 2020 Outlook – After COVID-19, a stronger recovery is coming
Analyst: Zheng Jieyuan
– The COVID-19 outbreak in China is beginning to be under control, with limited new cases recently. We expect the economy to recover in 2Q20.
– We are OVERWEIGHT on the China brokerage and infrastructure sectors due to the improvement of daily stock turnover and favourable policies for brokerage companies and increasing issuance of special bonds for infrastructure.
HK Reports – Read up on our Hong Kong reports here
RESEARCH VIDEOS
Webinar Of The Week
Market Outlook: (PSR) City Development Limited, CapitaLand Limited, Dasin, EC World, REITS & Banking Monthly, SG Weekly & Technicals
Date: 16 March 2020
Phillip Research in 3 minutes: #19 – Singapore Banking Sector Update
For more videos on Phillip in 3 Mins
| 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 揳s 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. |
