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