Daily Morning Note – 22 April 2020

PHILLIP SUMMARY

U.S. stock futures pointed to modest gains at the open on Wednesday, following recent weakness in markets aggravated by oil’s massive decline.

Dow futures rose 40 points, indicating a gain of about 0.3% at the open. The S&P 500 and Nasdaq Composite were also slated to open higher, with gains of 0.3% and 0.6%, respectively. The West Texas Intermediate contract for June delivery rebounded in evening trading, popping 15% to above $13 a barrel.

BREAKING NEWS

UNITED Overseas Bank (UOB) on Tuesday evening announced that it will offer pre-approved loans of up to S$200,000 to ease the short-term liquidity woes of small businesses hit by the novel coronavirus fallout.

THE manager of Keppel DC Reit on Tuesday said that it expects demand for its service to hold up in the Covid-19 pandemic as data centres support mission-critical operations.

SINGAPORE Press Holdings (SPH) on Tuesday reported higher bookings year-on-year for its purpose-built student accommodation (PBSA) properties in the UK at around 60 per cent.

SEMBCORP Marine (SembMarine) has received a government order to stop all onsite work with effect from Tuesday, until May 4 or the end of the “circuit-breaker” period. The stop-work order follows the steep rise in the number of confirmed Covid-19 cases among workers in dormitories.

KEPPEL Pacific Oak US Reit (KORE) on Monday posted a 16.1 per cent increase in its distributable income to US$14.4 million for the first quarter this year, up from US$12.4 million a year ago.

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

TECHNICAL PULSE

UMS Holdings Ltd

Recommended Action: Technical SELL

Despite UMS Holdings (SGX: 558) recovery, the technical indicates still point to a resumption of the bearish trend

Shopify Inc

Recommendation: Technical SELL

Shopify Inc (US: SHOP) may end its strong bullish upside after the stock prices show signs of a strong reversal based on the technicals

Read more research reports

RESEARCH REPORTS

Singapore Banking Note – Impact of Hin Leong Trading default

Analyst: Tay Wee Kuang
– Hin Leong Trading (Pte.) Ltd. (HLT) filed for bankruptcy on 17 April after it was discovered the company failed to report US$800mn worth of losses arising from derivatives trading.

– HLT has a total of more than US$3.6bn in secured debt owed to 23 different lenders with only US$700mn in assets.

– Local lenders DBS, OCBC and UOB each has exposure of US$290mn, US$240mn and US$140mn to HLT respectively.

– Earnings of local banks will be impacted by up to 7% as a result of additional provisioning.

Read more research reports

HK Reports – Read up on our Hong Kong reports here.

RESEARCH VIDEOS

Webinar Of The Week

Market Outlook: (PSR) SIA Capital Raising Exercise (Bonds), Banking Monthly, REITS Monthly, China Monthly, Technicals & Singapore 2Q20 Equity Strategy

Date: 13 April 2020

For more on Market Outlook

Phillip Research in 3 minutes: #19 – Singapore Banking Sector Update

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





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