Daily Morning Note – 27 February 2019

WEEKLY MARKET OUTLOOK WEBINAR

Register HERE forMONDAY’s 11.15am webinar.

Archived webinars available.

YOUR PHILLIP SUMMARY

Stocks fell in choppy trading Tuesday as investors digested the release of weaker-than-expected Home Depot earnings, mixed economic data and testimony from the top-ranked Federal Reserve official.

Stocks in Asia were set to see opening gains on Wednesday following comments from U.S. Federal Reserve Chairman Jerome Powell.

Palladium broke past $1,550 for the first time on Tuesday on the back of intensifying supply deficit, while gold dipped slightly after U.S. Federal Reserve Chairman Jerome Powell reiterated patience in further rate hikes.

Oil futures steadied on Tuesday on signs that OPEC plans to maintain production cuts despite pressure from U.S. President Donald Trump, whose comment criticizing rising crude prices sent the market into a tailspin a day earlier.

Source: CNBC


BREAKING NEWS

Creditors are due to file proof by Friday of the obligations that Hyflux owes them, putting the company’s S$2.7 billion unsecured debt load under an even brighter spotlight. The firm this month unveiled a proposal to impose 75 to 90 per cent haircuts on unsecured creditors, following a tumble triggered by an ill-timed expansion into energy in recent years. Singapore’s debt market has inflicted deep losses on unsecured creditors since the oil-market slump in late 2013, as a myriad of companies followed shipbuilders and charterers into distress.

Best World reported late on Tuesday a 28.9 per cent rise in net profit for its fourth quarter from a year ago, on a surge in revenue and higher gross margins. The stronger results come amid what it cites as a transition from an export model to a franchise model in its China market. Net profit for three months ended Dec 31, 2018 stood at S$28.1 million, compared to a net profit of S$21.8 million. The results translate to earnings per share of 5.12 Singapore cents, against earnings per share of 3.96 Singapore cents.

Food court operator Koufu lifted its fourth-quarter net profit by 3.7 per cent on higher sales, the group said on Tuesday. Net profit for the three months ended Dec 31, 2018 stood at S$7.51 million, compared with a net profit of S$7.24 million posted the same period a year ago. The results translate to earnings per share of 1.35 Singapore cents, against earnings per share of 1.50 Singapore cents. Revenue in the fourth quarter of 2018 was up 5.3 per cent from a year ago to S$57.05 million.

UOL Group on Tuesday posted a 51 per cent drop in group net profit to S$433.7 million for the year ended Dec 31 from S$880.2 million in the preceding year, due mainly to a S$535.6 million gain recognised upon the consolidation of the United Industrial Corporation group (UIC) in FY2017. Excluding this one-off gain, net profit would have risen 26 per cent. Group revenue climbed 13 per cent to S$2.4 billion in FY2018 due mainly to the full-year consolidation of revenue of the expanded group.

Singtel has signed a master services agreement with China Mobile International Ltd to collaborate on accelerating enterprise adoption of Internet of Things (IoT) in the Asia-Pacific region. China Mobile International is a wholly owned subsidiary of state-owned telco giant China Mobile. Both companies will enable each other’s enterprise customers to seamlessly deploy their IoT devices installed in cars, consumer electronics and industrial equipment across China and Singapore, they said in a joint media statement on Tuesday.

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

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.