Daily Morning Note – 24 October 2018

WEEKLY MARKET OUTLOOK WEBINAR

Register HERE for MONDAY’s 11.15am webinar.

Archived webinars available.

YOUR PHILLIP SUMMARY

Asian markets fell across the board in on Tuesday as investors remained cautious amid rising global tensions. A Chinese official told American investors at a meeting that Beijing did not “fear” a trade war with Washington.

Overnight on Wall Street, the Dow Jones Industrial Average declined by 126.93 points to close at 25,317.41, while the S&P 500 slid by 0.4 percent to end at 2,755.88. Oil fell to the lowest level since August after Saudi Arabia pledged to meet any supply shortfall that materializes from Iranian sanctions. Ongoing concern over Italy’s fiscal situation helped drive 10-year Treasury yields as low as 3.11 percent amid heavy futures volume.


BREAKING NEWS

US revokes visas for Saudis involved in Khashoggi killing. The United States announced on Tuesday that it was revoking visas of nearly two dozen Saudi officials involved in the killing of journalist Jamal Khashoggi, in the toughest action to date against its longtime ally. Secretary of State Mike Pompeo said the United States has “identified at least some of the individuals” behind the death of the Washington Post opinion writer in Saudi Arabia’s Istanbul consulate.

Oil slumps 5% as global equities tumble, Saudi supply assurances. Oil prices plunged about 5 per cent on Tuesday to two-month lows as a sell-off in global equity markets raised worries about demand growth and after Saudi Arabia said it could supply more crude quickly if needed, easing concerns ahead of US sanctions on Iran. Brent crude futures fell 4.3 per cent, or US$3.39, to settle at US$76.44 a barrel after plunging 5 per cent to US$75.88, the lowest since Sept 7.

Singtel to invest US$250m in Airtel Africa; funding round includes Temasek, Warburg Pincus, Softbank. Singtel will invest US$250 million in Airtel Africa Ltd in an effort to tap the continent’s burgeoning use of mobile money and mobile wallets. The investment forms part of US$1.25 billion in global funding which the African telco has secured from international investors, which includes Singapore investment firm Temasek Holdings, American private equity firm Warburg Pincus and Softbank Group International.

SHS unit racking up damages over delay in Bangladesh solar power project. The delay in delivering a solar power project in Bangladesh has led an SHS Holdings subsidiary to default on key agreements, the board of directors said on Tuesday. HDFC SinPower could accrue up to US$912,500 in liquidated damages over its failure to complete a 50-megawatt plant by Apr 18, under agreements with the Bangladesh Power Development Board (BPDB) and the Ministry of Power, Energy and Mineral Resources.

Mapletree Industrial Trust to resume distribution reinvestment plan for Q2. This means unitholders can choose to receive their distributions declared in the form of units or cash or a combination of both, so they can buy new units without incurring additional transaction-related costs.

Temasek’s first retail bond just over 8 times subscribed. The public offer of the up to S$200 million 5-year 2.7 per cent bond closed on Tuesday at 12 noon, and valid applications received totalled S$1.68 billion representing a subscription rate of just over eight times, Temasek said in a press release.

Trek 2000 board warns of expected Q3 loss. Trek 2000 International is expected to report losses for the three months and nine months to Sept 30, the board said in a profit warning on Tuesday. The group could sink into the red on lower sales revenue and a shrinking gross profit margin, said the board, citing a preliminary assessment of financial results that will be publicly released by Nov 7.

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.