Daily Morning Note – 25 Nov 2019

WEEKLY MARKET OUTLOOK WEBINAR

PHILLIP SUMMARY

The Dow climbed 0.4%, to close at 27,875.62. The S&P 500 gained 0.2% to end the day at 3110.29. The Nasdaq Composite advanced 0.2% to 8519.88. Stocks notched slight gains during Friday’s session, but trade uncertainty still led to the market’s first weekly drop since October. The S&P 500 ended the week lower by 0.3%.

President Donald Trump told Fox News that a trade deal between China and the U.S. was close. His comments came after Chinese President Xi Jinping said Friday that Beijing wants to work for a trade deal with the U.S. but is not afraid to “fight back.

U.S. business activity improved in both the manufacturing and service sectors in November, according to a report Friday from IHS Markit. The U.S. flash manufacturing PMI rose to 52.2 for the month, above expectations for 51.4 and the month prior’s 51.3. Manufacturers saw the biggest rise in new orders since April, “with goods producers signaling a further recovery from the slowdown seen earlier in the year,” IHS Markit said in a statement. The services PMI improved by one point from October to 51.6, ahead of expectations for a reading of just 51.0. The increase was driven by an uptick in new client demand and job creation, IHS Markit said.

BREAKING NEWS

THE executive chairman of mainboard-listed, Myanmar-focused investment holding company Yoma Strategic will still hold a stake of at least 25 per cent, even with recent investment plans by Philippine conglomerate Ayala Corp, the board disclosed on Sunday evening.

MAINBOARD-LISTED Procurri Corp has accepted a letter of intent from a would-be buyer of its third-party hardware maintenance business, the board said on Friday evening.

CATALIST-LISTED developer Hatten Land‘s plans to raise some S$5.1 million from a share placement will take a little longer than expected, the board disclosed on Saturday.

Hatten Land asked the bourse for, and was given, an extension of five market days – that is, until Nov 29 – to complete the placement of 56.5 million new shares to construction and property management businessman Yang Tse Pin’s Kingpin Investment Pte Ltd.

OFFSHORE and marine service provider Ezion Holdings is divesting two companies by Nov 30 to streamline its assets and cut costs, its board said in a bourse filing on Friday night.

THE mandatory offer for Catalist-listed ISEC Healthcare is “not fair but reasonable”, independent financial adviser CIMB Bank Berhad said, in an opinion released on Friday night.

Source: SGX Masnet, The Business Times, Bloomberg, Channel NewsAsia, Reuters, PSR

TECHNICAL PULSE

Capitaland Ltd

Recommended Action: Technical BUY

Capitaland Ltd (SGX: C31) bullish trend will likely continue based on the technical.

Read more technical reports

RESEARCH REPORTS

Singapore REITs Monthly – Monthly Tracker: November 2019

Recommendation: NEUTRAL (Maintained), Analyst: Natalie Ong

– FTSE S-REIT index return declined 2.2% MTD and gained 23.0% YTD. Strongest gains were from the Healthcare sector (1.46% MTD) and weakest showing from the Hospitality sector (-3.14% MTD).

– Sector yield spread grew 4bps MoM to 282bps, -0.96 standard deviation (s.d.) over the benchmark 10-year SGS (10YSGS) yield.

– 3-month SOR fell 6bps to 1.51% at 15 November 2019 versus 1.57% last month. Elevated P/NAVs expected to persist in the lower interest rate environment.

– Remain NEUTRAL on S-REITs sector. Sub-sector preferences: Commercial and Hospitality.

Read more research reports

Webinar Of The Week

Market Outlook: : (PSR) DBS, ECWREIT, APAC Realty Ltd, PropNex, Singtel & SG Weekly

Date: 18 November 2019

For more on Market Outlook

Phillip Research in 3 minutes: #16- JEP Holdings Ltd

Updates summarised in 3 minutes

For more videos on Phillip in 3 Mins

Read the research report(s), available through the link(s) above, for complete information including important disclosures Important Information





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This material is provided by Phillip Capital Management (S) Ltd (“PCM”) for general information only and does not constitute a recommendation, an offer to sell, or a solicitation of any offer to invest in any of the exchange-traded fund (“ETF”) or the unit trust (“Products”) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. You should read the Prospectus and the accompanying Product Highlights Sheet (“PHS”) for key features, key risks and other important information of the Products and obtain advice from a financial adviser (“FA“) pursuant to a separate engagement before making a commitment to invest in the Products. In the event that you choose not to obtain advice from a FA, you should assess whether the Products are suitable for you before proceeding to invest. A copy of the Prospectus and PHS are available from PCM, any of its Participating Dealers (“PDs“) for the ETF, or any of its authorised distributors for the unit trust managed by PCM.  

An ETF is not like a typical unit trust as the units of the ETF (the “Units“) are to be listed and traded like any share on the Singapore Exchange Securities Trading Limited (“SGX-ST”). Listing on the SGX-ST does not guarantee a liquid market for the Units which may be traded at prices above or below its NAV or may be suspended or delisted. Investors may buy or sell the Units on SGX-ST when it is listed. Investors cannot create or redeem Units directly with PCM and have no rights to request PCM to redeem or purchase their Units. Creation and redemption of Units are through PDs if investors are clients of the PDs, who have no obligation to agree to create or redeem Units on behalf of any investor and may impose terms and conditions in connection with such creation or redemption orders. Please refer to the Prospectus of the ETF for more details.  

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