Daily Morning Note – 26 Aug 2020

PHILLIP SUMMARY

The S&P 500 and the Nasdaq hit all-time closing highs on Tuesday, but a drop in Apple stock capped gains from positive developments in US-China trade and fresh progress in the medical battle against the coronavirus pandemic.

The Dow, which has yet to reclaim its February high, ended the session lower.

Apple Inc weighed heaviest on all three indexes, its stock retreating 0.8 per cent days ahead of its four-to-one stock split.

That split, which will reduce Apple’s weight in the Dow, prompted a reshuffle in the blue-chip industrial average, with Salesforce.com replacing ExxonMobil, Amgen taking Pfizer’s spot, and Raytheon Technologies ousted by Honeywell International.

BREAKING NEWS

Amcorp Global, formerly known as Tee Land, gave notice of recording three consecutive years’ of losses on Tuesday after the market close. Based on audited full-year consolidated accounts, the firm has run up pre-tax losses for the last three financial years, said Amcorp. Its six-month average daily market cap as of Aug 25 was S$79.5 million.

Tramore Global’s mandatory conditional cash offer for Tee International has closed, with valid acceptances of 24.66 per cent as at 5.30pm on Tuesday. After Tramore Global took a 36.8 per cent stake in Tee International, it made the offer for the remaining shares in the firm, in compliance with the Singapore Code on Takeovers and Mergers. The offer price of 3.38 Singapore cents per share represented a 25.19 per cent premium over the three-month volume-weighted average price (VWAP) per share, but a 33.73 per cent discount to the 12-month VWAP per share.

Mirach Energy has been given further deadline extensions for its annual general meeting (AGM) and financial statements, subject to certain conditions, the watch-listed firm announced in a Singapore Exchange filing on Tuesday night. The company has received a further – and final – extension of time to Sept 4, from Aug 3 previously, to publish its annual report for FY2019, so that external auditors BDO can finalise the audit of its FY2019 financial statements.

Sales of new homes leapt 13.9 per cent in July compared to the prior month, demolishing expectations as the US housing market continues to heat up, according to government data released Tuesday. The sales pace surged to an annual rate of 901,000 homes sold, more than 36 per cent above July 2019, helped by very low borrowing rates.

Singapore and Indonesia will begin discussions on a “reciprocal green lane” to allow essential travel to gradually resume in a manner that safeguards public health and safety in both countries. This was one of the areas of discussions when Indonesian Minister of Foreign Affairs Retno Marsudi met Singapore’s Minister for Foreign Affairs Vivian Balakrishnan on Tuesday, said the Ministry of Foreign Affairs in a statement on Tuesday.

Gold‘s record-setting rally is set to give wings to the largest initial share sale by an Indian jeweller, helping it overcome tumbling demand in the second-biggest consuming nation. Kalyan Jewellers India said Monday it plans to raise as much as 17.5 billion rupees (S$322 million) through a public listing as it banks on the long-term appeal of gold, a staple of Indian weddings and a popular investment option in the country.

Crude oil prices rose to a five-month high on Tuesday as US producers shut most offshore output in the Gulf of Mexico ahead of Hurricane Laura even as rising coronavirus cases in Asia and Europe capped gains.

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

TECHNICAL PULSE

AEM Holdings Ltd

Analyst: Chua Wei Ren

Recommended Action: Technical SELL

AEM Holdings (SGX: AWX) impulse intermediate phase has come to an end after a failure to continue a potential extended 5th wave which was promising initially after prices broke out of the bullish flag.

SATS Ltd

Analyst: Chua Wei Ren

Recommended Action: Technical SELL

SATS Ltd (SGX: S58) unexpected strong upside has been fulfilled based on our previous report dated 21st August. However, as we have mention in that report that the strong resistance zone is a targeted sell-zone and based on the technical, we have arrived sooner than expected.

>> Read more technical reports

RESEARCH VIDEOS

Webinar Of The Week

Market Outlook: Hyphens, Dasin, CDL, Singtel, SREITs and Banking Monthly, Bonds Weekly and more

Date: 24 August 2020

For more on Market Outlook

Phillip Research in 3 minutes: #25 – Prime US REIT; Initiation

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





Disclaimer
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.
Confidentiality Note
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.