Daily Morning Note – 26 November 2018

WEEKLY MARKET OUTLOOK WEBINAR

Register HERE for MONDAY’s 11.15am webinar.

Archived webinars available.

YOUR PHILLIP SUMMARY

U.S. stocks closed lower Friday, pressured again by falling oil prices, which drove the indexes to weekly loses of more than 3.5%—the second straight week of declines.

The Dow Jones Industrial Average fell 178.74 points, or 0.7%, to 24,285.95, the S&P 500 index off 17.37 points, or 0.7%, at 2,632.56, while the Nasdaq Composite Index retreated 33.27 points to 6,938.98, a decline of 0.5%.

Markets were driven lower by pressure on oil. U.S. oil on Friday registered the worst day in about three years. January West Texas Intermediate crude slid $4.21, or 7.7%, to settle at $50.42 a barrel, representing the worst day since July 6 of 2015 and the lowest settlement since Oct. 9, 2017.

U.S. Treasury yields also fell Friday, following the drop in European debt yields, due to tepid economic data. The 10-year Treasury note yield gave up 1.6 basis points to 3.045%, its lowest since Sep. 17. The German 10-year bond yield fell 3.1 basis points to 0.339%. Trading in German government paper can influence yields for Treasuries as both share safe haven status among investors.

Bond yields fell across Europe after a raft of lackluster eurozone data. Germany’s gross domestic product fell by 0.2% in the third-quarter, the first negative reading since early 2015. And the eurozone composite purchasing manufacturer’s index for November slipped to 52.4, its lowest in nearly four years.

Source: Marketwatch

RESEARCH REPORTS

Golden Energy and Resources Ltd – Production on track but some headwinds

Recommendation: BUY(Maintained), Last Close Price: S$0.230

Target Price: S$0.360, Analyst: Chen Guangzhi

– Production surged 66% while coal prices slightly dropped.

– Multiple upward pressures on cash cost

– Bearish price outlook in the near term

Geo Energy Resources – A production miss

Recommendation: BUY (Maintained), Last Done Price: S$0.205

Target Price: S$0.245, Analyst: Chen Guangzhi

– Capital injection and coal prepayment from Macquarie Bank

– 4Q18 coal price outlook is weak

– 13mn tonnes production target for FY19


BREAKING NEWS

India’s government wants to discuss changes in the central bank’s governance structure at the Reserve Bank of India’s next board meeting, Economic Secretary Subhash Chandra Garg told ET Now.

Noble Group‘s US$3.5 billion restructuring has received time extensions for conditions crucial to the deal, which may now see completion pushed further till Dec 11, according to exchange filings on Sunday night.

LTC Corporation announced on Monday morning that it will go ahead with voting on its proposed delisting after receiving confirmation from the Singapore Exchange’s (SGX) regulation unit that it would be subject to existing voluntary delisting rules.

Source: SGX Masnet, Bloomberg, Reuters, The Business Times, Channel NewsAsia, Phillip Securities Research

Clients of Phillip Securities can keep updated with Country Strategy and Singapore Sector Reports by logging into: www.poems.com.sg > STOCKS > Research

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 “as 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.