Daily Morning Note – 23 May 2019

WEEKLY MARKET OUTLOOK WEBINAR

Register HERE for MONDAY’s 11.15am webinar.

Archived webinars available.

Please ignore the ComfortDelGro report summary issued in error within the 17 May 2019 edition of Morning Note. We apologise for the error. Thank you for your understanding.

YOUR PHILLIP SUMMARY

Asian stocks looked set for modest declines after U.S. equities slipped and Treasuries climbed amid ongoing trade-war tensions. The dollar steadied after Federal Reserve minutes reiterated its patient stance on policy.

Trade tensions between the U.S. and China are starting to pull foreign-exchange markets into the arena. Yet far from embracing their currencies as a weapon, many countries are being forced to take a defensive posture against the almighty dollar.


TECHNICAL PULSE

Wilmar International Ltd

Current Sentiment: BULLISH

Wilmar bullish has come to a halt and base on the technical factors presented, the market has identify 3 area of value which the market will most likely to rebound after the correction.



RESEARCH REPORT

Banyan Tree Holdings Limited – Plagued by one-offs

Accumulate (Maintained); Target price: S$0.76, Last close: S$0.54

– Revenue and PATMI below our expectations due to under-forecasted one-offs
and continued weakness in Thailand. Excluding other income, PATMI would
have risen c.50%.

– One-offs from reduced stake in BTAC and disposal of Seychelles portfolio to
continue into the rest of FY2019.

– Effective cost measures across the board, with total costs and expenses
declining -23%.

– Forward bookings edged back up after a decline in 1Q19, up 11% YoY for 2Q19
(+6% YoY for Thailand market and +26% YoY for Non-Thailand markets).

– Hotel investments segment still suffering from Thailand underperformance,
stemming from the inventory shortage from ongoing renovations at flagship
resort Banyan Tree Phuket.

– Long-term growth catalysts remain intact. Focus would be the continued buildup
in fee-based income and property sales. 53 hotels under the Banyan Tree
umbrella of brands are slated to open from 2019 to 2022.

– Maintain ACCUMULATE with unchanged target price of S$0.76.

Read more research reports

BREAKING NEWS

Federal Reserve says economic risks have receded. Risks to the US economic outlook, including trade uncertainty and Brexit, have receded but are still present, the US Federal Reserve said on Wednesday. And with inflation pressures still muted the central bank can afford to be patient before deciding on any further rate moves, according to the minutes of the April 30-May 1 policy meeting, when the Fed left the key lending rate unchanged.

US judge says Qualcomm violated antitrust law; appeal planned, shares plunge. Qualcomm Inc illegally suppressed competition in the market for smartphone chips by threatening to cut off supplies and extracting excessive licensing fees, a US judge ruled, a decision that could force the company to overhaul its business practices. The decision issued late Tuesday night by US District Judge Lucy Koh in San Jose, California, caused Qualcomm shares to plunge 11 per cent on Wednesday.

MAS, ABS set up steering group for better conduct among banks in S’pore. A steering group has been set up to foster more rigorous culture and conduct practices among banks in Singapore, said the Monetary Authority of Singapore (MAS) and the Association of Banks in Singapore (ABS) on Wednesday. The Singapore regulator has been intensifying its supervision of financial institutions in the past two years, including conducting culture and conduct surveys at several banks, as well as thematic inspections of incentive structures.

SingHaiyi posts 47.6% rise in Q4 net profit to S$9.74m. Real estate group SingHaiyi on Wednesday announced that Q4FY19 net profit rose 47.6 per cent year-on-year to S$9.74 million. Revenue declined 67.6 per cent to S$9.84 million mainly due to the decrease in revenue recognised for the completed executive condominium project, The Vales, and the private condominium, City Suites. Earnings per share came to 0.228 Singapore cent versus 0.209 cent previously.

Yongnam inks agreement for proposed placement of convertible bonds. Yongnam Holdings has entered into a placement agreement to raise capital by placing out up to S$15 million worth of redeemable convertible bonds. The maturity date of the non-listed bonds is two years from the issue date, and the bonds will bear interest at a rate of 7 per cent per annum, payable every six months. The conversion price of S$0.179 represents a premium of approximately 6.55 per cent to the prevailing market price of the shares prior to the signing of the placement agreement.

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.

 

Contact us to Open an Account

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

IMPORTANT INFORMATION

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