Daily Morning Note – 27 Nov 2019
WEEKLY MARKET OUTLOOK WEBINAR
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.
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
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.
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).
Webinar Of The Week
Date: 25 November 2019
Phillip Research in 3 minutes: #16- JEP Holdings Ltd
|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.|
|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.|