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.
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
Webinar Of The Week
Market Outlook: : (PSR) DBS, ECWREIT, APAC Realty Ltd, PropNex, Singtel & SG Weekly
Date: 18 November 2019
Phillip Research in 3 minutes: #16- JEP Holdings Ltd
Updates summarised in 3 minutes
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