Daily Morning Note – 24 September 2018

WEEKLY MARKET OUTLOOK WEBINAR

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Archived webinars available.

YOUR PHILLIP SUMMARY

The Dow Jones Industrial Average DJIA, +0.32% rose 75.67 points, or 0.3%, to 26,732, after logging its first all-time high on Thursday since Jan. 26. However, the S&P 500 SPX, -0.04% edged, lower, closing 1.27 points to 2,929.48, a rise of less than 0.1%, after the broad-market benchmark posted its first record since Aug. 29. The Nasdaq Composite Index COMP, -0.51% which remains about 2% below record levels, fell 41.28 points to 7,986.96, a decline of 0.5%.

For the week, the Dow is up 2.3% and on booked its biggest weekly percentage gain since July. The S&P 500 rose 0.9%. Both the Dow and the S&P recorded their second straight weekly gain, as well as their 10th positive week of the past 12. The Nasdaq ended with a 0.3% weekly fall.

Both the S&P and the Nasdaq have hit multiple records over the past few months, thanks in large part to the outperformance of technology and internet stocks.

Markets have been grinding higher in a low-volatility market for several weeks. The gains have largely been supported by improving economic data, which have pointed to strong economic fundamentals, particularly in contrast to other regions, where stocks have been struggling.


Source: MarketWatch.com

RESEARCH REPORT

Sembcorp Industries Ltd – Renewing portfolio and a spark in India

Recommendation: BUY, Last Done Price: S$3.03

Target Price: S$3.70, Analyst: Chen Guangzhi

– Singapore runs an integrated utilities facility with stable earning despite
general weakness from the power segment.

– An additional source of income from the sale of renewable credit to Facebook

– Utilities’ China benefited from seasonality in 1H18.

– Utilities’ India is turning around due to improvement in the power market.

Phillip Singapore Monthly – September 2018: Guessing the next crisis

Analyst: Paul Chew

– As we enter 10th anniversary of Lehman, rising U.S. Fiscal deficit is a possible
stress point.

– Inflationary pressure piling up in Singapore requiring for tighter monetary
policy

– As we head into U.S. mid-terms, expect more caution in October.


BREAKING NEWS

Qingjian Realty (South Pacific) Group said that it has sold 300 units at the JadeScape condo as at 2pm, Sunday, Sept 23. The average transacted price is S$1,700 per square foot. Under the first phase of sales, 480 of the development’s 1,206 residential units has been released.

Keppel Corp is considering a potential transaction of its stake in logistics and data centre arm Keppel Telecommunications & Transportation (Keppel T&T) and has asked Singapore Press Holdings (SPH) to take part in a possible transaction involving their stakes in listed telco M1, according to filings with the Singapore Exchange on Monday morning.

DBS Group Holdings, Southeast Asia’s largest lender, is expanding its fixed-income business in China in a bid to bring more first-time bond issuers to the offshore market.


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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