Daily Morning Note – 21 Nov 2019

WEEKLY MARKET OUTLOOK WEBINAR

PHILLIP SUMMARY

Strategists say there’s still a chance for a phase one trade deal between the U.S. and China, even as the stock market sold off on skepticism the two nations could come together.

The bond market had already been reflecting sinking prospects for a deal as yields fell in recent sessions. The Dow Jones Industrial Average fell as much as 258 points on Wednesday after a Reuters story quoted trade sources saying a deal may not be completed this year.

BREAKING NEWS

The Singapore economy staged a recovery in the third quarter, growing 0.5 per cent compared with the same period last year, according to figures released by the Ministry of Trade and Industry (MTI) on Thursday (Nov 21). This is slightly higher than the 0.2 per cent expansion in the previous quarter, revised upwards from 0.1 per cent growth.

City Developments Limited (CDL), CapitaLand Limited (CapitaLand) and Ascott Residence Trust (Ascott Reit) have teamed up to redevelop the Liang Court site1 into an integrated development following the proposed sale by CDL Hospitality Trusts (CDLHT) of its total interest in Novotel Singapore Clarke Quay, subject to the approval of CDLHT’s unitholders at its extraordinary general meetings, to the 50:50 CDL-CapitaLand joint venture entities and CDL. Concurrently, Ascott Reit will sell part of its interest in Somerset Liang Court Singapore2 to CDL.

CapitaLand on Wednesday said that it will sell the The Star Vista for S$296 million to Rock Productions, the business arm of New Creation Church (NCC).

Ascendas India Trust (a-iTrust) on Wednesday said it has raised S$150 million in gross proceeds from its upsized private placement, which was 4.1 times subscribed.

Alibaba Group Holding raised about US$11 billion in a long-awaited Hong Kong stock sale, braving the worsening political unrest gripping the city and potentially gaining favour in Beijing.

The billionaire frontman of Thailand‘s anti-military bloc was stripped of his MP status on Wednesday over a media shareholding case, a court ruling that could lead to him being banned from politics and jailed for up to 10 years.

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

TECHNICAL PULSE

Mandarin Oriental International Ltd

Recommended Action: Technical BUY

Mandarin Oriental International Ltd (SGX: M04) sentiment is turning more positive and based on the recent technicals.

Read more technical reports

RESEARCH REPORTS

ComfortDelGro Corp Ltd – Overseas growth opportunities to offset cost pressures

Recommendation: ACCUMULATE (Maintained), Last Close Price: S$2.36

Target Price: S$2.56 (prev TP: S$2.99), Analyst: Edmund Xue

– Revenue and PATMI were below our expectations.

– Revenue growth of 1.1% YoY was due to the bus acquisitions in Australia and the UK.

– Railway margins depressed by higher operating and maintenance costs for rail operations and increasing DTL fixed charges by LTA.

– Competitive pressures remain for the taxi business despite stabilising fleet size.

– Maintain ACCUMULATE with a lower target price of S$2.56 (previous target price: $2.99). Our PATMI for FY19e is lowered by 2.3%.

– Maintain ACCUMULATE with a lower target price of $5.36 (prev. S$5.47). Our PATMI for FY19e is cut by 2.4%.
>> Read more research reports

Read more research reports

Webinar Of The Week

Market Outlook: : (PSR) DBS, ECWREIT, APAC Realty Ltd, PropNex, Singtel & SG Weekly

Date: 18 November 2019

For more on Market Outlook

Phillip Research in 3 minutes: #16- JEP Holdings Ltd

Updates summarised in 3 minutes

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





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This material is provided by Phillip Capital Management (S) Ltd (“PCM”) for general information only and does not constitute a recommendation, an offer to sell, or a solicitation of any offer to invest in any of the exchange-traded fund (“ETF”) or the unit trust (“Products”) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. You should read the Prospectus and the accompanying Product Highlights Sheet (“PHS”) for key features, key risks and other important information of the Products and obtain advice from a financial adviser (“FA“) pursuant to a separate engagement before making a commitment to invest in the Products. In the event that you choose not to obtain advice from a FA, you should assess whether the Products are suitable for you before proceeding to invest. A copy of the Prospectus and PHS are available from PCM, any of its Participating Dealers (“PDs“) for the ETF, or any of its authorised distributors for the unit trust managed by PCM.  

An ETF is not like a typical unit trust as the units of the ETF (the “Units“) are to be listed and traded like any share on the Singapore Exchange Securities Trading Limited (“SGX-ST”). Listing on the SGX-ST does not guarantee a liquid market for the Units which may be traded at prices above or below its NAV or may be suspended or delisted. Investors may buy or sell the Units on SGX-ST when it is listed. Investors cannot create or redeem Units directly with PCM and have no rights to request PCM to redeem or purchase their Units. Creation and redemption of Units are through PDs if investors are clients of the PDs, who have no obligation to agree to create or redeem Units on behalf of any investor and may impose terms and conditions in connection with such creation or redemption orders. Please refer to the Prospectus of the ETF for more details.  

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The information provided herein may be obtained or compiled from public and/or third party sources that PCM has no reason to believe are unreliable. Any opinion or view herein is an expression of belief of the individual author or the indicated source (as applicable) only. PCM makes no representation or warranty that such information is accurate, complete, verified or should be relied upon as such. The information does not constitute, and should not be used as a substitute for tax, legal or investment advice.  

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250 North Bridge Road #06-00, Raffles City Tower ,Singapore 179101 
Tel: (65) 6230 8133 Fax: (65) 65383066 www.phillipfunds.com