Daily Morning Note – 27 March 2019


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Stocks in Asia were set to slip at Wednesday’s market open despite overnight gains on Wall Street. The S&P 500 Index gained for the first time in three sessions, getting a boost from technology shares. Though, a patent ruling against Apple pushed the counter lower, and weighed on benchmarks.

The gains on Wall Street were trimmed, but the benchmark 10-year Treasury yield rose. The benchmark rate sat at about 2.42 percent on Tuesday afternoon. Gold retreated on Tuesday from more than three-week highs in the previous session after the dollar rebounded. The dollar index was up 0.17 percent.


Netlink NBN Trust – The fibre landlord

Recommendation: ACCUMULATE(Initiation), Last Done: S$0.825

Target Price: S$0.89, Analyst: Alvin Chia

– Sole network provider of residential fibre broadband in Singapore
– Stable and recurrent cash-flows from a customer base of 1.3mn
– Future growth from NBAP and non-residential end-user connections
– We initiate coverage on NLT with a target price of S$0.89. We used a DCF approach in
our valuation because of the regular stream of cash generated from NLT’s fibre business.
Our valuation is based on a WACC of 6% and a terminal growth rate of 1%.


US new-home groundbreakings fell in February by the most in eight months on a drop in single-family homes, suggesting buyers and builders remain wary despite higher wages and a drop in mortgage rates.

The number of pipeline and storage terminal projects proposed to move shale to the US Gulf Coast has dwindled amid steps by oil producers to pare exploration spending.

Japanese Prime Minister Shinzo Abe’s cabinet approved regulations for gambling resorts, the first of which could open in Osaka as soon as 2024 and provide a new source of tax revenue.

DBS Bank and Singapore Airlines (SIA) signed a Memorandum of Understanding (MoU) on Tuesday to enable a seamless banking and travel customer experience for travellers by enhancing digital capabilities across various platforms.

Metro Holdings announced on Tuesday that it has launched and priced S$165 million in aggregate principal amount of 4.3 per cent notes due 2024.

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

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