Daily Morning Note – 20 May 2020

PHILLIP SUMMARY

Stocks in Asia looked poised to track their U.S. peers lower after reports circulated that Moderna Inc.’s vaccine study, which was credited in part for Monday’s rally, didn’t produce enough critical data to assess its success. Treasuries gained.

Futures dropped in Japan, Hong Kong and Australia. Contracts on the S&P 500 edged higher after the U.S. gauge lost ground in the final hour of trading to end about 1% lower. Riskier assets had started the week on the front foot after the Moderna news fueled hopes for a coronavirus vaccine, but investors are struggling to maintain the optimism as they continue to monitor efforts to both contain the pandemic and restart economies. Crude oil slipped below $32 a barrel in New York, while the dollar edged lower.

BREAKING NEWS

Singapore Press Holdings (SPH) said in a business update on Tuesday that its “resilient finances” will withstand the impact of Covid-19. This comes as it has a strong balance sheet with a healthy cash buffer of more than S$800 million. It has also improved gearing ratios with cost management, and has no loans due till June 2021, said SPH, which owns The Business Times.

Singapore Press Holdings (SPH) announced in a regulatory filing on Tuesday that two of its subsidiaries have each applied to be placed under judicial management. The subsidiaries are info-tech firms StreetSine Technology Group and StreetSine Singapore, which have also applied for interim judicial managers to be appointed pending the determination of their applications. A pre-trial conference has been fixed for June 4; the hearing date has yet to be fixed.

Suntec Real Estate Investment Trust (Suntec Reit) has launched S$200 million worth of new five-year notes. The notes are expected to mature on May 27, 2025, Suntec Reit’s manager said in a filing on Tuesday. They will carry a coupon fixed at 2.60 per cent per annum, payable semi-annually in arrear. The issuer is Suntec Reit MTN, a wholly-owned subsidiary of Suntec Reit’s trustee, HSBC Institutional Trust Services (Singapore).

Catalist-listed manufacturer of disposable gloves UG Healthcare Corporation said in a regulatory update on Tuesday that its facilities are operating at “optimum production efficiency”, with the production capacity of 2.9 billion gloves per annum amid higher demand for gloves. The planned additional annual capacity of 300 million gloves will be added in FY2021 ending on June 31, 2021. Plans for further expansion of its production capacity will be announced in due course, said UG Healthcare.

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

TECHNICAL PULSE

Jardine Cycle & Carriage Ltd

Recommended Action: Technical BUY

Jardine Cycle & Carriage (SGX: C07) The second wave of the downtrend has been going on since prices broke support level at $28.69 on 28 Feb 2020…However, the stock’s selling momentum began to take a breather when the prices started going into a range-bound movement entering May.

>> Read more technical reports

RESEARCH VIDEOS

Webinar Of The Week

Market Outlook: (PSR) DBS, UOB, OCBC, FCT, CMT, CCT, Ascendas REIT, ART, CAPL, SSG, STRH, NLT, VMS & Phillip Singapore Weekly

Date: 11 May 2020

For more on Market Outlook

Phillip Research in 3 minutes: #21 – Singapore REITs Sector

For more videos on Phillip in 3 Mins

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





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.