Daily Morning Note – 26 Nov 2019



Major U.S. stock-market benchmarks ended Monday’s session at records as investors remained attuned to developments in the U.S.-China trade relationship and cheered a wave of merger activity.

The Dow Jones Industrial Average advanced 0.68% to end at 28,066.47, while the Nasdaq Composite, climbed 1.3%, to 8,632.49. The S&P 500 index SPX ended higher at 3,133.64, a gain of 0.8%.

Analysts said investors remain sensitive to headlines around U.S.-China trade talks, with remarks Saturday by Robert O’Brien, the U.S. national security adviser, in the spotlight. O’Brien told reporters at a security conference in Halifax that a “phase-one” deal between the U.S. and China by the end of the year still appeared possible, Reuters reported, while also warning that the U.S. would not “turn a blind eye to what’s happening in Hong Kong or what’s happening in the South China Sea, or other areas of the world where we’re concerned about China’s activity.”

On the economic front, the Chicago Fed’s national activity index for October fell to a reading of negative-0.71, from negative-0.45 in the previous month. The Dallas Fed manufacturing index rose to a negative-1.3 in November from negative-5.1 in October.


CREDIT ratings agency Moody’s Investors Service has changed its outlook on Frasers Hospitality Trust (FHT) to negative from stable, while affirming its Baa2 issuer ratings.

MINDCHAMPS PreSchool has collaborated with one of Australia’s top theatre schools, Actors Centre Australia, to open a performing arts preschool in Singapore.

Asian airlines are cautious about the outlook for 2020 after trade disputes undermined confidence and led to economic growth below initial forecasts this year, the head of the Association of Asia Pacific Airlines (AAPA) said on Monday.

AIMS APAC Reit (AA Reit) and its joint venture partner, Stockland, have secured a new agreement with its existing master tenant Optus Administration, for a further 12-year term at the Optus Centre property in Macquarie Park, New South Wales, Australia.

A CONSORTIUM led by mainboard-listed First Sponsor has partnered Australia’s ICD Property to redevelop the iconic City Tattersalls Club (CTC) project in Sydney.

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


Singapore Airlines Ltd

Recommended Action: Technical BUY

SIA (SGX: C6L) technicals signal that the stock may head for a bullish breakout after trading in a prolonged range.

DBS Group Holdings Ltd

Recommended Action: Technical SELL

DBS Group (SGX: D05) technicals suggest that the stock may head lower despite having upbeat recovery.

Read more technical reports


Thai Beverage PLC – Beer losing (from) interest

Recommendation: REDUCE (Downgraded), Last Done: S$0.89

Target Price: S$0.80, Analyst: Paul Chew

– Revenue and earnings were below our forecast. Earnings suffered from less fair value gains in associate Frasers Property (FPL) and beer division losses.

– Volumes were healthy for spirits and beer but gross margins suffered. More than 100% of 4Q19 PATMI is from the spirits division.

– Dividends for the year raised by 23% to Bt0.48 (S$0.021).

– Downgrade to REDUCE. We lowered our SOTP-derived TP to S$0.80 as we cut FY20e earnings by 5%. Our margins interest expense estimates have been raised. Outlook for FY20e is dependent on government support for farm income. Earnings from Sabeco will be under pressure from interest expenses and contribution to the group will be minimal

Read more research reports

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Market Outlook: : (PSR) Singapore Exchange Limited, Comfort Delgro, SATS & REITs Monthly

Date: 25 November 2019

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

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

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