Daily Morning Note – 24 August 2018


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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%.


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

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

– 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.


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

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


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

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