Daily Morning Note – 23 Sep 2019



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.


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


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


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

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


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