Daily Morning Note – 22 May 2019


Register HERE for MONDAY’s 11.15am webinar.

Archived webinars available.


Asian stocks looked set to track an advance in U.S. equities and Treasury yields climbed as investors showed some willingness to buy riskier assets despite the ongoing trade turmoil. The dollar edged up.

Donald Trump delayed blacklisting Huawei on concerns it could disrupt China trade talks. Asia equities are in the green following a rebound in U.S. stocks as the trade war remains in focus.


DBS Bank Ltd

Current Sentiment: BEARISH-RANGING

DBS has retested and broken the uptrend line for the 2nd time yesterday and most likely the market will continue its bearish correction. Despite turning lower, the market still has potential to rally as the 2 demand zone confluence strongly with the 78.6% and 88.6% of the Fibonacci retracement level.

To further add on, the 200 Simple moving average is trending near the 1st demand zone and this may be a clue that market may find itself at that level to rally. So do watch out for that level.


CNMC Goldmine Holdings Limited – Ongoing output improvement

Recommendation: BUY, Last Closing Price: S$0.20

Target Price: S$0.31, Analyst: Chen Guangzhi

– 1Q19 production well improved YoY but underperformed QoQ

– Several expansion plans to boost output and lower operating costs

– Most expansion plans are on track

Singapore REITs Monthly – May 2019

NEUTRAL (maintained); Analyst: Tara Wong

– FTSE S-REIT Index gained +9.9% YTD. Strongest gains from the Commercial
sub-sector (+14.0% YTD) and weakest showing at the Industrial sub-sector

– Performance in April: Best performer – Lippo Malls Indonesia Retail Trust
(+11.9%), Worst performer – Suntec REIT (-5.6%)

– Sector yield spread of 241bps over the benchmark 10-year SGS (10YSGS)
yield dipped further below the -1 standard deviation (SD) level as at end-

– 3m SOR inched back up to 1.97% at end-April from 1.93% at end-March.

– Remain NEUTRAL on S-REITs sector. Sub-sector preferences: Office and

United Overseas Bank Limited – UOB Corporate Day 2019

Recommendation: ACCUMULATE (Maintained), Last Close Price: S$24.8

Target Price: S$30.9 (unchanged), Analyst: Tin Min Ying

– UOB shared some of its key strategies to expand revenue mix outside
Singapore to close to 50%.

– Digitisation to drive the next leg of efficiency improvement with a cost-toincome
ratio of 42% in 3 years (1Q19: 44.6%).

– Most interesting was the new Digital Bank app called “TMRW” in Thailand.
It will be ASEAN’s first mobile-only Digital Bank with 500 kiosks in Bangkok.

– Maintain Accumulate with an unchanged target price of S$30.90. We
maintain our existing earnings forecasts.

Read more research reports


Chinese ambassador says Beijing ready for further trade talks. hinese Ambassador to the United States Cui Tiankai said on Tuesday that Beijing was ready to continue trade talks with Washington. “China remains ready to continue our talks with our colleagues to reach a conclusion. Our door is still open,” Mr Cui said in an interview on Fox News Channel. No further trade talks between top Chinese and US negotiators have been scheduled since the last round ended on May 10.

May to ask lawmakers to vote on a second Brexit referendum. British Prime Minister Theresa May said her government will include in her Withdrawal Agreement Bill a requirement for lawmakers to vote on whether to hold another Brexit referendum. “I recognise the genuine and sincere strength of feeling across the House on this important issue,” Mrs May said. “The government will therefore include in the Withdrawal Agreement Bill at introduction a requirement to vote on whether to hold a second referendum.”

US existing home sales unexpectedly fall in April. US home sales unexpectedly fell in April amid persistent weakness in the lower-priced segment of the market, which has experienced an acute shortage of properties. The National Association of Realtors said on Tuesday existing home sales fell 0.4 per cent to a seasonally adjusted annual rate of 5.19 million units last month. March’s sales pace was unrevised at 5.21 million units.

Oil little changed as US-Iran dispute supports, trade war weighs. Oil futures were steady on Tuesday as the prospect of mounting US-Iran tensions disrupting supply was offset by concerns that a lengthy trade war between Washington and Beijing would limit crude demand. Brent crude futures settled at US$72.18 a barrel, gaining 21 cents. US West Texas Intermediate (WTI) crude futures settled at US$62.99 a barrel, down 11 cents ahead of the front month contract for June delivery expiring on Tuesday. The July contract settled at US$63.13 a barrel.

Acromec unit to build, operate waste-to-energy plant for Chew’s Agriculture poultry farm. Specialist engineering firm Acromec’s 80 per cent owned unit will build, own and operate a waste-to-energy power plant at Chew’s Agriculture’s new poultry farm at Neo Tiew Road, off Lim Chu Kang. The power plant – which would be Acromec’s first – is meant to boost recurring income and diversify the company’s business into renewable energy, it announced on Tuesday.

Pacific Radiance JV gets US$2.78m in HK arbitration for failed vessel delivery. A joint-venture of offshore marine company Pacific Radiance on Friday announced that it has been awarded about US$2.78 million plus interest as part of arbitration against two Chinese shipyard groups, Shanghai Waigaoqiao Shipbuilding & Offshore and China Shipbuilding Trading (Shanghai). They had failed to deliver two platform supply vessels as part of two 2013 shipbuilding contracts.

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

Clients of Phillip Securities can keep updated with Country Strategy and Singapore Sector Reports by logging into: www.poems.com.sg > STOCKS > Research

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

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.


Contact us to Open an Account

Need Assistance? Share your Details and we’ll get back to you


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.  

Investments are subject to investment risks including the possible loss of the principal amount invested. The purchase of a unit in a fund is not the same as placing your money on deposit with a bank or deposit-taking company. There is no guarantee as to the amount of capital invested or return received. The value of the units and the income accruing to the units may fall or rise. Past performance is not necessarily indicative of the future or likely performance of the Products. There can be no assurance that investment objectives will be achieved.  

Where applicable, fund(s) may invest in financial derivatives and/or participate in securities lending and repurchase transactions for the purpose of hedging and/or efficient portfolio management, subject to the relevant regulatory requirements. PCM reserves the discretion to determine if currency exposure should be hedged actively, passively or not at all, in the best interest of the Products.  

The regular dividend distributions, out of either income and/or capital, are not guaranteed and subject to PCM’s discretion. Past payout yields and payments do not represent future payout yields and payments. Such dividend distributions will reduce the available capital for reinvestment and may result in an immediate decrease in the net asset value (“NAV”) of the Products. Please refer to <www.phillipfunds.com> for more information in relation to the dividend distributions.  

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.  

The information herein are not for any person in any jurisdiction or country where such distribution or availability for use would contravene any applicable law or regulation or would subject PCM to any registration or licensing requirement in such jurisdiction or country. The Products is not offered to U.S. Persons. PhillipCapital Group of Companies, including PCM, their affiliates and/or their officers, directors and/or employees may own or have positions in the Products. Any member of the PhillipCapital Group of Companies may have acted upon or used the information, analyses and opinions herein before they have been published. 

This advertisement has not been reviewed by the Monetary Authority of Singapore.  


Phillip Capital Management (S) Ltd (Co. Reg. No. 199905233W)  
250 North Bridge Road #06-00, Raffles City Tower ,Singapore 179101 
Tel: (65) 6230 8133 Fax: (65) 65383066 www.phillipfunds.com