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





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.

 

Contact us to Open an Account

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

IMPORTANT INFORMATION

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