Daily Morning Note – 24 Sep 2020
PHILLIP SUMMARY
Wall Street stocks tumbled on Wednesday as a September selloff resumed amid worries over a coronavirus second wave and an increasingly contentious US presidential election. The Dow Jones Industrial Average ended down 1.9 per cent, or 525 points, at 26,764.25.
The broad-based S&P 500 dropped 2.4 per cent to 3,236.92, while the tech-rich Nasdaq Composite Index shed 3.0 per cent to 10,632.99.
Investors are also disappointed that Washington lawmakers haven’t reached an agreement on more stimulus and uneasy over speculation that the US presidential election could drag on due to slow vote counts or legal challenges, he said. The Business Roundtable on Wednesday joined a chorus of groups and lawmakers calling for more stimulus spending, saying the failure to act risks “long-term damage” to the US economy.
BREAKING NEWS
Accordia Golf Trust (AGT) entered into a foreign-exchange forward contract on Wednesday over the sale of its interests in all its golf courses, the manager has said. The contract for 25.2 billion yen (S$327.8 million), or 38.7 per cent of the price tag in the divestment deal with the trust’s sponsor, comes after the manager’s earlier announcement that it was not planning for any arrangements to hedge the purchase value.
Sabana Shari’ah Compliant Industrial Real Estate Investment Trust (Sabana Reit) on Wednesday urged unitholders to read a forthcoming scheme document before they decide how they will vote on the planned merger with ESR-Reit.
LHN Ltd, a real estate management service provider, has inked a deal to buy the car park of Bukit Timah Shopping Centre for S$16.2 million, through a 40 per cent stake in a joint-venture (JV) company set up on Wednesday.
Catalist-listed seafood restaurant chain No Signboard Holdings resigned on Wednesday, the board said in a late-night bourse filing. Ivan Khua, 45, stepped down over “current and future business and other commitments” that could make it difficult for him to continue with his duties, the filing said.
IHS Markit US business activity nudged down in September, with gains at factories offset by a retreat at services industries, suggesting a loss of momentum in the economy as the third quarter draws to a close and the Covid-19 lingers.
Companies have made only “modest” use of the Federal Reserve’s Main Street Lending Program, but credit is pretty broadly available to them already, and the US central bank isn’t planning any “major” changes to make it more broadly available, Fed Chair Jerome Powell said on Wednesday.
Oil prices edged higher on Wednesday, supported by US government data that showed crude and fuel inventories dropped last week, though concerns about the ongoing coronavirus pandemic capped gains.
European stocks rose on Wednesday, as a rebound in beaten-down travel stocks and gains for Adidas and other sports names took the edge off data that highlighted an uneven path for economic recovery in the euro zone.
Source: SGX Masnet, The Business Times, Bloomberg, Channel NewsAsia, Reuters, PSR
TECHNICAL REPORTS
Ping An Insurance Group Co of China Ltd
Analyst: Chua Wei Ren
Recommended Action: Technical SELL
Ping An Insurance (HK: 2318) has been on a weak upside momentum after prices fails to clear above HKD$90.00 in July, which is also the highest in Q3. Technical also suggest that the stock is heading for further downside
>> Read more technical reports
RESEARCH VIDEOS
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