Daily Morning Note – 20 Sep 2019
WEEKLY MARKET OUTLOOK WEBINAR
PHILLIP SUMMARY
The Dow Jones Industrial Average gave up a 100-point gain and the S&P 500 held steady just under its all-time high on Thursday as investors checked their optimism about renewed U.S.-China trade talks.
The Dow finished the day down 52.29 points at 27,094.79 as gains in Microsoft and UnitedHealth weren’t enough to offset losses in Boeing and Walt Disney. The S&P 500 closed around flatline at 3,006.79 thanks to gains in health-care and materials stocks and weakness in industrials and energy. The tech-heavy Nasdaq Composite gained less than 0.1% to close at 8,182.88.
By the closing bell, the S&P 500 was 0.7% away from its record high despite a lackluster week on Wall Street. The Dow and S&P 500 are down 0.4% and 0.02% for the week, respectively.
BREAKING NEWS
Embattled water firm Hyflux and three of its subsidiaries on Thursday applied to the court for a further two-month extension of their debt moratorium, until November. The applications for this extension will be heard at a court hearing on Sept 30, when its previous extension will expire, Hyflux said in a bourse filing late on Thursday night.
Tee International announced on Thursday that it has received a 60-day extension from the Singapore Exchange (SGX) to conduct its Annual General Meeting (AGM) by Nov 29 and release its Q1 results for the financial year 2020 by Dec 13. This comes as the company revealed on Sept 8 that it is looking into unauthorised transactions of S$6.55 million made by subsidiaries, allegedly under the instruction of chief executive Phua Chian Kin. On Sept 13, it appointed PricewaterhouseCoopers Risk Services as an external investigator.
INVESTORS still holding on to shares of the formerly SGX-listed Noble Group will need to register with the appointed trustee by Dec 20 to receive their shares in the unlisted entity, Noble Group Holdings (NGH). NGH was formed in the second half of 2018, after the embattled Noble Group underwent restructuring. Unlike the powerful commodities trader, NGH operates on a much smaller scale as an energy products and industrial raw materials supply chain manager.
Amid a lower-for-longer interest rate environment, Singapore real estate investment trusts (S-Reits) are fast ramping up their acquisitions worth billions of dollars, market watchers say. Just this week alone, three S-Reits have announced equity financing to partially fund their acquisitions – Keppel DC Reit raised S$478.2 million to fund its proposed acquisition of two data centres worth about S$587 million, Mapletree Industrial Trust (MIT) secured S$400 million to acquire a US$1.4 billion data centre portfolio together with Mapletree Investments, and Manulife US Reit on Thursday said it plans to raise US$142.1 million to finance its US$198.8 million acquisition of a Class A office building in Sacramento, California.
UOB (China) became the first foreign bank to open a branch in Guangdong’s Zhongshan City on Thursday, as it continues its expansion plans in the Greater Bay Area (GBA) with a total of seven branches to date. The new UOB Zhongshan branch will tap the group’s expertise to provide businesses in the GBA with a suite of domestic and cross-border financial services. These include cash management, foreign exchange hedging, term loans, project and supply chain financing, and foreign direct investment advisory services.
The eight Singapore-listed stocks under the enlarged CapitaLand group generated higher average returns than their regional and global peers in the year to date (YTD), while also significantly outpacing broader benchmarks, the Singapore Exchange (SGX) said on Thursday. They averaged a 3.3 per cent total return in the quarter to Sept 18, bringing their average total return to 28.2 per cent in 2019 YTD.
Manulife US Real Estate Investment Trust (Manulife US Reit) on Thursday said it intends to raise about US$142.1 million via a private placement and preferential offering to partially fund its US$198.8 million acquisition of a Class A office building in Sacramento, California.
Property developer OUE Limited has inked agreements to sell Oakwood Premier OUE Singapore, its luxury serviced residences and hotel business along Shenton Way, for S$289 million in total. The buyers are joint venture firms formed by Hong Kong financial services firm AMTD Group and hotel operator Dorsett Hospitality International. Dorsett is wholly-owned by Hong Kong-listed property giant Far East Consortium International (FEC).
Mail and logistics firm Singapore Post (SingPost) said on Thursday that its six-month sale process for its US e-commerce businesses Jagged Peak and TradeGlobal has closed with “no acceptable offers”.
Mainboard-listed Samko Timber’s unit PT Sempurna Graha Abadi (SGA) will buy a 51 per cent stake in PT Sumber Graha Maluku (SGM), and will pay up to US$20.7 million to SGM’s parent company PT Barito Wanabinar Indonesia (BWI).
Source: SGX Masnet, The Business Times, Bloomberg, Channel NewsAsia, Reuters, PSR
TECHNICAL PULSE
City Development Ltd
Recommended Action: Technical SELL
City Developments (SGX:C09) is expected to head into a bearish correction based on the technicals
Webinar Of The Week
Market Outlook: : (PSR) Singapore Banking, Clearbridge Health Limited, Micro-Mechanics, Singapore Weekly, US Weekly, China Weekly, Technicals
Date: 09 September 2019
Phillip Research in 3 minutes: #14- Singapore Banking Sector
Updates summarised in 3 minutes
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 “as 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. |
