Daily Morning Note – 23 July 2018

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RESEARCH REPORTS

CapitaLand Mall Trust – Baby steps towards a recovery
Recommendation: Neutral (Maintained), Last Close Price: S$2.16
Target Price: S$2.05, Analyst: Tan Dehong
– 2Q18 NPI/DPU within our estimates.
– 10-15bps valuation capitalisation rate compression despite rising interest
rates.
– More tenant sectors seeing sales turnaround in 2Q18.
– Overall tenant sales still slow to recover, down 0.2% YoY in 1H18, dragged by
slower F&B sales, the biggest tenant sector within the portfolio.
– Maintain Neutral with unchanged TP of S$2.05.


TECHNICAL PULSE

UOB Ltd – Weekly timeframe – Bullish
– Despite price breaking below the 26.00 psychological support intra-week, the
bulls succeeded in closing back above the 26.00 level in the week ended
20/07/18 signals some sign of strength.
– Thus with the current bullish rejection off the 26.00 support area, expect price
to turn back into the long-term uptrend to test the 27.20 resistance followed
by 28.46.

For more information and additional disclosures, refer to the link here.

BREAKING NEWS

The Dow Jones Industrial Average slipped 0.03 percent, or 6.38 points, to close at 25,058.12, the S&P 500 shed 0.09 percent to end at 2,801.83 and the Nasdaq Composite inched lower by 0.07 percent to 7,820.20.

The 30-year Treasury bond broke above 3 percent and hit its highest level since late June, on news of Trump’s criticism of the Fed’s monetary policy-making decisions. The short-term two-year note yield climbed to 2.595 percent, while the benchmark 10-year note yield rose to 2.891 percent.

Trade war escalations get riled up again, with Trump tweeting that “China, the European Union and others have been manipulating their currencies and interest rates lower.” Trump mentioned in a recent interview that he was prepared to impose tariffs on all Chinese imports to the US if he had to.

KEPPEL Offshore & Marine (Keppel O&M) has secured two contracts with a combined value of about S$70 million, for respective work in Brazil and in Singapore.

Dozens of Apple customers have had hundreds of dollars each drained from their bank accounts, after being billed for purchases they did not make on their iTunes accounts. The victims that Channel NewsAsia spoke to said the charges were deducted from their accounts at DBS and OCBC.

GOLDEN Springs Group (GSG) has sold a 75 per cent stake in Gold Coin Management Holdings to Pilmico International, a subsidiary of Aboitiz Equity Ventures (AEV), in a deal which values the livestock feed producer at US$550 million.

CROWN Group is considering listing its Indonesia business on the Singapore bourse. A listing of its Australian operations also on the local bourse could be on the cards in the future.

Source: SGX Masnet, Bloomberg, Reuters, The Business Times, Channel NewsAsia, Phillip Securities Research

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

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