Daily Morning Note – 26 Oct 2020


US stocks fell last week, breaking a three-week winning streak as the odds of passing a novel coronavirus relief bill before the Nov 3 presidential election were slim even as Covid-19 cases proliferated. Tech shares underperformed after Intel Inc. plunged more than 10%, dragging chipmakers lower.

Investors remain focused on Washington, where lawmakers are haggling over a financial spending bill to prop up the economy before the Nov. 3, though optimism that a deal will come at some point this year has helped drive Treasury rates higher in recent days. Concerns remain that rising virus cases will force additional business closures. The final presidential debate appeared to do little to alter the trajectory of a race that Democrat Joe Biden leads according to polls.

Growing coronavirus infections around the world continued to weigh on markets. U.S. cases exceeded 70,000 for the first day since late July. In Europe, governments have started deploying curfews and other restrictions more widely.


NANOFILM Technologies, the spin-off company of Nanyang Technological University (NTU) lodged its final prospectus, offering 77.2 million shares at S$2.59 each for placement in its initial public offering (IPO) for a total of S$470.1 million. Based on its placement price, Nanofilm’s market capitalisation will be about S$1.7 billion post-placement. The public offer opens at 6pm on Oct 23 and will close at noon on Wednesday.

Wealth management and brokerage platform iFast Corporation reported a net profit of S$6.2 million for the third quarter ended Sept 30, up 150.6 per cent from S$2.5 million in the year-ago period. The group’s “record high” earnings were achieved on the back of a 33.3 per cent year-on-year increase in gross revenue to S$45 million from S$33.8 million last year, as both its business-to-consumer (B2C) and business-to-business (B2B) divisions booked improvements in revenue contributions. iFast CEO Lim Chung Chun said the group would be launching new products and services in Malaysia and China by early 2021.

OXLEY Holdings said that the completion of construction works in its properties is expected to be delayed by four to six weeks because of the Covid-19 pandemic, with construction sites having ceased activities to varying degrees in Singapore and overseas.

GL Limited, a UK hotel sector player, recorded an unaudited net loss after tax of US$22.5 million for its first quarter ended Sept 30, reversing from a net profit after tax of US$12 million for the year-ago quarter, on the back of the Covid-19 outbreak.

ST ENGINEERING on Friday said it has signed a memorandum of understanding (MOU) with Montran Corporation focusing on the “digitalisation of critical payments and securities settlement systems” in the Asia-Pacific region. The partnership will see the establishment of a Centre of Excellence (COE) in Singapore, both companies said in a joint statement.

Property firm The Straits Trading Company will issue at par S$200 million worth of notes maturing on Oct 29, 2025. The unsubordinated and unsecured five-year notes carry a coupon of 3.75 per cent, the mainboard-listed firm said on Friday.

Credit card issuer American Express reported a nearly 40 per cent slump in quarterly profit, hurt by lower spending by its users, while it also set aside US$665 million for potential defaults. Net income fell to US$1.07 billion, or US$1.30 per share, for the third quarter ended Sept 30, from US$1.76 billion, or US$2.08 per share, a year earlier.

PayPal Holdings is exploring acquisitions of cryptocurrency companies including Bitcoin custodian BitGo, according to people familiar with the matter, a move that would expand its embrace of digital coins.

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


Keppel DC REIT – In anticipation of acquisitions

Recommendation: NEUTRAL (Maintained), Last Done: S$3.00

Target Price: S$2.91, Analyst: Natalie Ong

– 9M20 DPU of 6.73 cents in line, forming 71.3% of our FY20e DPU estimate.

– Portfolio metrics healthy: long WALE of 7.2 years, portfolio occupancy of 96.7% and interest coverage ratio of 12.7x. AEI and rental escalations to provide organic growth.

– Reiterate NEUTRAL with a higher DDM-based target price of S$2.91 from S$2.57 after incorporating S$500mn of acquisitions for 1Q21e. Despite strong metrics and future-ready asset classes, reiterate Neutral as we believe the market has priced in potential catalysts from acquisitions and STI inclusion. Prefer Ascendas REIT (AREIT SP, Accumulate, TP: S$3.63) in the sector.

Phillip Model Bond Portfolio – Review 26 October 2020

Credit Analyst: Timothy Ang

– The Phillip Model Bond Portfolio outperformed the benchmark for the month and displayed lower volatility in returns throughout. The total portfolio return was 1.1% vs the Singapore Fixed Income index total return of 0.3%

– In terms of portfolio return, 0.8% gains was from price appreciation while 0.3% was gained in yield.

– We maintain the portfolio holdings.

>> Read more research reports

HK Reports – Read up on our Hong Kong reports here


Webinar Of The Week

Market Outlook: Singapore REITS Monthly, US Election (Energy & Financials Sector Update), SG Weekly

Date: 19 October 2020

For more on Market Outlook

Updates summarised in 3 minutes

Phillip Research in 3 minutes: #26 – iX Biopharma Ltd; 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

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.


Contact us to Open an Account

Need Assistance? Share your Details and we’ll get back to you


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.  

Investments are subject to investment risks including the possible loss of the principal amount invested. The purchase of a unit in a fund is not the same as placing your money on deposit with a bank or deposit-taking company. There is no guarantee as to the amount of capital invested or return received. The value of the units and the income accruing to the units may fall or rise. Past performance is not necessarily indicative of the future or likely performance of the Products. There can be no assurance that investment objectives will be achieved.  

Where applicable, fund(s) may invest in financial derivatives and/or participate in securities lending and repurchase transactions for the purpose of hedging and/or efficient portfolio management, subject to the relevant regulatory requirements. PCM reserves the discretion to determine if currency exposure should be hedged actively, passively or not at all, in the best interest of the Products.  

The regular dividend distributions, out of either income and/or capital, are not guaranteed and subject to PCM’s discretion. Past payout yields and payments do not represent future payout yields and payments. Such dividend distributions will reduce the available capital for reinvestment and may result in an immediate decrease in the net asset value (“NAV”) of the Products. Please refer to <www.phillipfunds.com> for more information in relation to the dividend distributions.  

The information provided herein may be obtained or compiled from public and/or third party sources that PCM has no reason to believe are unreliable. Any opinion or view herein is an expression of belief of the individual author or the indicated source (as applicable) only. PCM makes no representation or warranty that such information is accurate, complete, verified or should be relied upon as such. The information does not constitute, and should not be used as a substitute for tax, legal or investment advice.  

The information herein are not for any person in any jurisdiction or country where such distribution or availability for use would contravene any applicable law or regulation or would subject PCM to any registration or licensing requirement in such jurisdiction or country. The Products is not offered to U.S. Persons. PhillipCapital Group of Companies, including PCM, their affiliates and/or their officers, directors and/or employees may own or have positions in the Products. Any member of the PhillipCapital Group of Companies may have acted upon or used the information, analyses and opinions herein before they have been published. 

This advertisement has not been reviewed by the Monetary Authority of Singapore.  


Phillip Capital Management (S) Ltd (Co. Reg. No. 199905233W)  
250 North Bridge Road #06-00, Raffles City Tower ,Singapore 179101 
Tel: (65) 6230 8133 Fax: (65) 65383066 www.phillipfunds.com