Daily Morning Note – 24 August 2018
WEEKLY MARKET OUTLOOK WEBINAR
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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
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