Daily Morning Note – 24 August 2018

WEEKLY MARKET OUTLOOK WEBINAR

Register HERE for MONDAY’s 11.15am webinar.

Archived webinars available.

YOUR PHILLIP SUMMARY

On Thursday, U.S. and China enacted tariffs on $16 billion in each others’ goods, resulting in a decline in manufacturing and materials stocks. With most of the companies having reported their earnings this quarter, the trade dispute will likely create more market volatility ahead.

The S&P 500 fell 4.84 points, or 0.2%, to 2856.98, while the Dow Jones Industrial Average shed 76.62 points, or 0.3%, to 25656.98. The Nasdaq Composite sank 10.64 points, or 0.1%, to 7878.46, snapping a five-session winning streak.

Elsewhere, the Stoxx Europe 600 fell 0.2%. Japan’s Nikkei Stock Average finished up 0.2%, while Hong Kong’s Hang Seng was down 0.5%.


RESEARCH REPORT

Banyan Tree Holdings Limited – Increasingly going asset light

Recommendation: Accumulate (Maintained), Last Close Price: S$0.54

Target Price: S$0.73, Analyst: Tan Dehong

– Losses narrowed in the traditionally off-peak season due to lower operating
expenses.

– Lower total costs and expenses mainly due to deconsolidation of China
operations.

– Increase in forward bookings suggest tourism sentiment still healthy.

– Near term uncertainties for Thailand operations but we expect impact to be
transitional and short-term.

– Maintain ACCUMULATE with unchanged target price of S$0.73.


SHS Holdings Ltd – Growth engines intact

Recommendation: BUY (Maintained), Last Done Price: S$0.24

Target Price: S$0.29, Analyst: Alvin Chia

– Revenue weaker by 13% YoY

– The corrosion prevention segment is benefitting from the improved sentiment
in marine & offshore sector. The growth engines solar and modular are
gaining traction.

– Maintain BUY with an unchanged target price of S$0.29.



TECHNICAL PULSE

DBS Ltd – Daily timeframe – Bullish

– Strong bullish rejection off the 25.00 psychological support with increasing
volume suggests a high likelihood of a rebound higher next.
– Expect price to head higher next to test the 26.35 resistance area followed by
27.28.


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

BREAKING NEWS

United Tec Construction Pte. Ltd., a 60%-owned subsidiary of Lian Ben Group Ltd, has secured a contract from United Venture Development (Silat) Pte. Ltd. for a proposed residential flat development. The Contract is worth approximately S$278.5 million. The contract period shall be 42 months and is expected to commence in August 2018.



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

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.