Daily Morning Note – 24 Oct 2019
WEEKLY MARKET OUTLOOK WEBINAR
Stocks in Asia looked primed for gains following an advance in U.S. equities, as earnings provided some optimism against a backdrop of concern for global economic growth. Equity futures in Japan, Hong Kong and Australia advanced, while the S&P 500 earlier added 0.3% and closed above the 3,000 level. While the picture isn’t uniformly positive, earnings season is dampening some fears that corporate outlooks are souring. About 80% of companies on the S&P 500 have topped expectations for profits, though Texas Instruments and Caterpillar both showed how uncertainty stemming from trade tensions and global economic weakness are making customers nervous. Treasuries yields rose off the lows of the session, while the dollar traded flat, and oil surged.
The International Monetary Fund on Wednesday cut its growth projection for Singapore to 0.5 per cent in 2019, down from an earlier estimate of 2 per cent in July, due to strong export headwinds and the downturn in the electronics cycle.
ST Engineering’s US marine subsidiary has been ordered following arbitration proceedings to pay US$18 million to a customer. Consequently, it would make a further provision of about S$14.2 million in the financial statements for the period ended Sept 30 as an adjusting subsequent event.
San Teh cash offer to delist extended to Nov 7. Singapore San Teh Real Estate, the offeror through which the Kao family is making the offer, together with concert parties controls or had agreed to acquire a total of 89.83 per cent of all shares in San Teh, as at 5pm on Oct 23.
Wing Tai Holdings’ net profit more than tripled to S$6.8 million for the first quarter ended Sept 30, thanks to a 20 per cent reduction in cost of sales and higher profits from associates and joint ventures.
Property Guru. abandoned its proposed flotation on the Australia Securities Exchange, citing uncertainty in the initial public offering market. People familiar with the deal said that the order book could not be filled even at the bottom end of the price range. The move to scrap the IPO was thus unsurprising, especially with no strategic investors coming in yet.
Source: SGX Masnet, The Business Times, Bloomberg, Channel NewsAsia, Reuters, PSR
CapitaLand Mall Trust – Sunlight through the clouds
Recommendation: NEUTRAL (Maintained) Last Done: S$2.62
Target Price: S$2.68, Analyst: Natalie Ong
– 3Q19 NPI and DPU in line with our forecast, with 3Q19/9M19 DPU forming 26.4%/76.4% of our DPU forecast.
– Higher occupancy and positive portfolio rental reversions, with YTD tenant sales falling less than RSI Ex. MV (-1.3% vs -1.8%1)
– Maintain Neutral with unchanged TP of $2.68.
Webinar Of The Week
Date: 21 October 2019
Phillip Research in 3 minutes: #16- JEP Holdings Ltd
|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.|
|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.|