Daily Morning Note – 23 Sep 2019

WEEKLY MARKET OUTLOOK WEBINAR

PHILLIP SUMMARY

Stocks fell Friday on news that Chinese officials were cutting short their visit to the U.S., dampening hope around trade negotiations between the two countries.

The Dow Jones Industrial Average closed 159.72 points lower, or 0.6% at 26,935.07. The S&P 500 pulled back 0.5% to 2,992.09. The Nasdaq Composite dropped 0.8% to 8,117.67.

The U.S. dollar rose against a basket of currencies on Friday, putting it on track for its first weekly increase in three, prompted by hopes of progress in U.S.-China trade talks and that the Federal Reserve would not lower rates aggressively.



BREAKING NEWS

Hong Kong police again clashed with protesters in various parts of the city, with firefighters called in to put out blazes set by the demonstrators in the 16th week of pro-democracy protests.

The Formula One Singapore Grand Prix recorded its second highest attendance in the night race’s 12-year history, having pulled in 268,000 attendees over three days – despite the hazy weather.

An event of default on a loan granted to PACC Offshore Services Holdings’ (Posh) joint venture has triggered a cross-default under a second loan facility by another lender to the joint venture.

8TELECOM International Holdings has entered into a binding term sheet to issue 3 per cent equity-linked convertible notes worth up to S$10 million maturing in 2021.

SHS Holding Ltd updated on 22 September 2019 on its Bangladesh solar project – the HDFC has entered into various contracts with certain EPC contractors with a view to supporting the application for an extension of the Extended Planned Commercial Operations Date by the Ministry of Power. Payment for the EPC contracts will be on a deferment basis. The contractors’ payments under the EPC Contracts are to be made by HDFC, and the EPC contractors will have no recourse against any other entity within the Group.

Geo Energy to Scale-Up Coal Business and Acquire Two Producing Mines for US$25.0 million. Geo Energy to acquire a 100% stake in PT Titan Global Energy (“TGE”) and an effective interests of 51% in each of the two producing mines PT Bara Anugrah Sejahtera (“BAS”) and PT Banjarsari Pribumi (“BP”) from PT Titan Infra Energy (“TIE”) 1 and PT Jaya Utama Indonesia (“JUI”) for US$25 million (the “Consideration”)

Source: The Business Times, SGX, PSR

TECHNICAL PULSE

Singapore Technologies Engineering Ltd

Recommended Action: Technical BUY

ST Engineering (SGX: S63) is expected to resumes it bullish rally based on the technicals

Read more research reports

RESEARCH REPORTS

Ctrip.com International, Ltd. – One-stop travel company with addressable global market

Analyst: Zheng Jieyuan, Chua Wei Ren

– Ctrip reported 2Q19 net revenue of RMB 8.7bn, up 19% YoY – of which accommodation reservation revenue increased 21% YoY to RMB 3.4bn, and packaged-tour revenue increased 25% YoY to RMB 1.1bn.

– 2Q19 gross margin was flat at 79% as compared to 80% in 2Q18.

– We are positive on Ctrip due to the large addressable global online travel agent market, its leading position in China and unique core competencies. Ctrip currently trades at P/E of 36.8 and P/B of 1.2.

Costco Wholesale Corporation – Strong margins and international growth

Analyst: Edmund Xue, Chua Wei Ren

– Costco (COST) will be able ride on its loyal customer base (~90% renewal rate), global growth opportunity (average 5% constant-currency growth YoY), strong gross margins (average of 13% for the past 10 years) and continued expansion of its store base.

– Robust international comps.

– Strong comps for major product categories.


– We have a TECHNICAL BUY rating for COST.

Webinar Of The Week

Market Outlook: : (PSR) Singapore Banking, Clearbridge Health Limited, Micro-Mechanics, Singapore Weekly, US Weekly, China Weekly, Technicals

Date: 09 September 2019

For more on Market Outlook

Phillip Research in 3 minutes: #14- Singapore Banking Sector

Updates summarised in 3 minutes

For more videos on Phillip in 3 Mins

Read the research report(s), available through the link(s) above, for complete information including important disclosures Important Information





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