Daily Morning Note – 27 Nov 2019

WEEKLY MARKET OUTLOOK WEBINAR

PHILLIP SUMMARY

U.S. stocks advanced to close at new all-time highs Tuesday, as investors focused on U.S.-China trade talks and an upbeat assessment of the economy from Federal Reserve Chairman Jerome Powell.

The Dow Jones Industrial Average rose 55.21 points, or 0.2% to 28,121.68, while the S&P 500 index rose 6.88 points, or 0.2% to 3,140.52 The Nasdaq Composite Index gained 15.44 points, or 0.2%, to close at 8,647.93. Volumes were expected to remain subdued ahead of Thursday’s Thanksgiving Day holiday, which will see U.S. markets closed, followed by an abbreviated trading session on Friday.

Stocks have been sensitive to developments in the long-running U.S.-China trade battle and have been largely in rally mode since October, after Washington and Beijing signaled they were working toward a partial deal aimed at resolving less controversial issues.

Meanwhile, Fed Chair Powell, in remarks Monday evening, outlined an optimistic view of the U.S. economy but signaled that low inflation would likely keep interest rates low.

In U.S. economic data, the trade deficit fell 6% to $66.5 billion, versus expectations of $70.3 billion, according to a MarketWatch poll of economists, but the U.S. is still likely to post the biggest trade deficit in 2019 in 11 years. Consumer confidence fell in November for the fourth month in a row. New-home sales fell in October to a seasonally adjusted annual rate of 733,000, from 738,000 in September.

BREAKING NEWS

SGX share price tumble at yesterday close due to MSCI rebalancing.

CATALIST-LISTED coffeeshop operator Kimly saw a 6 per cent fall in net profit to S$5.4 million for the fourth quarter ended Sept 30, on the back of lower revenue and higher income tax expense.

SEAFOOD restaurant operator Jumbo Group saw net profit rise 5.9 per cent to S$11.7 million for the full year ended Sept 30, 2019 despite a marginal decrease in revenue.

AGORAE Pte Ltd took home top honours at the Enterprise 50 (E50) Awards 2019 on Tuesday, a stunning achievement for the new entrant.

CANCER diagnostics company Biolidics has inked a definitive agreement with Japan-based healthcare group Sysmex to jointly develop a liquid biopsy cancer diagnostic test. A liquid biopsy is a test done on a sample of blood to look for cancer cells.

CHRISTMAS came early this year for companies that found themselves on the Singapore Exchange (SGX) Fast Track programme list.

OCBC Bank has priced A$500 million (S$463 million) of senior floating-rate green notes due 2022 under its US$30 billion global medium term note programme.

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

TECHNICAL PULSE

China Tower Corp Ltd

Recommended Action: Technical SELL

China Tower (HK: 788) relentless downtrend will continue.

Hong Kong Exchange & Clearing Ltd

Recommended Action: Technical SELL

HKEX (HK: 388) is expected to face a correction in the near term… the stock’s bearish momentum will persist.

Read more technical reports

RESEARCH REPORTS

Dasin Retail Trust – Mitigating the DPU gap

Recommendation: ACCUMULATE (Maintained), Last Close Price: S$0.84

Target Price: S$0.88, Analyst: Phillip Research Team

– 3Q19 NPI and DPU came in within our forecasts.

– The proposed acquisition of Shunde and Tanbei Metro Mall will lift underlying DPU by 4.3%.

– We lower our revenue and DPU forecasts to reflect the weakening RMB and retail outlook and incorporate the acquisition of Doumen (completed 12 September 2019), Shunde and Tanbei (TBC 1Q20) Metro Malls.

– Maintain ACCUMULATE with lower TP of S$0.88 (previously S$0.94).

Read more research reports

Webinar Of The Week

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

Date: 25 November 2019

For more on Market Outlook

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

Updates summarised in 3 minutes

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





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