Daily Morning Note – 25 June 2020
Asian stocks are set to drop after a tumble on Wall Street, where worries about a surge in virus cases in multiple U.S. states spurred a flight from riskier assets.
Equity futures in Japan and Australia pointed lower after the S&P 500 declined 2.6% and Treasuries advanced along with the dollar. U.S. stock futures opened to a modest drop. Data showed Florida and California set daily records for new cases, while Houston said its intensive-care unit beds are at 97% capacity. New York, New Jersey and Connecticut are requiring visitors from virus hot spots to self-quarantine. The tech-heavy Nasdaq Composite fell for the first session in nine.
The manager of Mapletree Industrial Trust (MIT) on Wednesday said its upsized private placement was 8.2 times covered at an issue price of S$2.80 – the top end of its issue price range of S$2.732 to S$2.80. Closing one day after launching on June 23, the exercise, whose upsize option was fully taken, will issue about 146.4 million new units, netting the real estate investment trust (Reit) gross proceeds of about S$410 million.
Yoma Strategic on Wednesday proposed to increase its existing shareholding and take a controlling interest in mobile payments firm Digital Money Myanmar (Wave Money) via a US$76.5 million deal.
Mainboard-Listed film production group mm2 Asia will be launching a new on-demand streaming platform offering movies in Singapore, with plans to expand into regional markets, it said in a bourse filing on Wednesday. The platform, Cathay CineHOME, will let consumers watch movies on a pay-per-view basis.
ST Group Food Industries Holdings announced on Wednesday that it will open 10 new food and beverage (F&B) outlets by September, in a push to expand its operations across its key geographical markets of Australia, New Zealand the United Kingdom.
Malaysian multi-channel duty-free and duty-paid retail group Duty Free International posted a net loss of RM9.1 million (S$3 million) for its fourth quarter ended Feb 29, 2020, reversing its net profit of RM10 million previously. But the group said in its statement that it has “ample liquidity to weather through Covid-19 challenges”.
Source: SGX Masnet, The Business Times, Bloomberg, Channel NewsAsia, Reuters, PSR
Mapletree Logistics Trust
Recommended Action: Technical SELL
Technicals indicate further correction ahead, we are switching our bullish stance turning bearish, albeit modestly.
Yoma Strategic Holdings Ltd. – Acquiring more Money
Recommendation: BUY (maintained), Last Done: S$0.300
Target Price: S$0.460 , Analyst: Tan Jie Hui
– Acquisition of Telenor’s 34.2% stake in Wave is at an attractive price of $76.5mn, a 20% discount to our projected valuation of Wave.
– Yoma will become the controlling shareholder of Wave through Wave Holdco at 63.7%. Yoma’s effective stake to increase up to 40.7% with a further US$25mn investment. We expect deeper collaboration and integration with Yoma’s other consumer businesses.
– Maintain BUY with an unchanged target price of $0.46.
HK Reports – Read up on our Hong Kong reports here
Webinar Of The Week
Date: 22 June 2020
|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 揳s 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.|