Daily Morning Note – 23 January 2019
WEEKLY MARKET OUTLOOK WEBINAR
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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
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