Daily Morning Note – 23 January 2019

WEEKLY MARKET OUTLOOK WEBINAR

Register HERE for MONDAY’s 11.15am webinar.

Archived webinars available.

YOUR PHILLIP SUMMARY

Wall Street drops as economic outlook, corporate forecasts sour. The S&P 500, the Nasdaq and the Dow all posted their biggest one-day percentage drops since Jan 3.

Asian stocks followed their U.S. counterparts lower as rising pessimism that trade tensions with China will persist helped send technology and multinational companies tumbling. Treasuries held gains, oil fell and the dollar steadied.

Japanese and Australian shares slipped and futures in Hong Kong pointed to losses after all major U.S. benchmarks declined. Chipmakers dropped more than 3 percent, with every member of the Philadelphia Semiconductor Index in the red.

The Stoxx Europe 600 Index dipped after Switzerland’s UBS Group AG delivered disappointing results. The pound rose after U.K. data showed the jobs market remains resilient.



RESEARCH REPORT

Frasers Centrepoint Trust – Falling tenant sales hindrance to healthier reversions

Recommendation: NEUTRAL (Maintained), Last Done Price: SGD2.26

Target Price: SGD2.21, Analyst: Tara Wong

– 1Q19 NPI and DPU in line with our forecast. Improved NPI margins for
Causeway Point and Changi City Point (CCP), with the latter performing
exceptionally well.

– Secured refinancing and prepayment of certain 2019 borrowings and 2020
debt.

– Waning rental reversions for CCP and Northpoint North Wing. Flat samestore
tenant sales growth during the Sep-Nov 2018 period, declining in
excess of -1% YoY.

– Maintain Neutral with unchanged TP of S$2.21.

Singapore Healthcare Monthly – Public healthcare still in the lead

Recommendation: NEUTRAL (Maintained), Analyst: Tin Min Ying

– Singapore’s hospital admissions grew 4.3% YoY in Nov’18 with the public
sector taking a larger share.

– Singapore’s birth rate fell 4.9% YoY in Sep’18, the fourth month of
contraction.

– The number of Singapore citizens aged 65 and over grew 6.0% YoY in 2018,
unchanged from 6.0% YoY in 2017.

– Malaysia’s B40 Health Protection Fund scheme will provide insurance
protection for the bottom 40% of the population.

– Maintain NEUTRAL for the Singapore Healthcare Sector.


Keppel DC REIT – A good close to the year

Recommendation: Accumulate (Maintained), Last Close Price: $1.44

Target Price: $1.52 (previously $1.45), Analyst: Richard Leow

– Revenue and DPU were in line with expectations

– DPU growth was fuelled by portfolio expansion

– Maintain ACCUMULATE; new target price of $1.52 (previously $1.45)


BREAKING NEWS

Grand Venture Technology Limited was listed through a $13.2m IPO. Trading of shares to commence at 9 a.m. on 23 January.

Koufu Group Limited has attracted a strategic investor through a married deal.

The Offer by Exeo Global Pte. Ltd. for Declout Limited has been declared unconditional.

The application by 8Telecom International Holdings Co for more time to file its sustainability report has been rejected by the Singapore Exchange.


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

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.