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
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