Daily Morning Note – 28 Aug 2019

WEEKLY MARKET OUTLOOK WEBINAR

Register HERE for MONDAY’s 11.15am webinar.

Archived webinars available.

PHILLIP SUMMARY

Stocks in Asia edged up on Tuesday as investors watched closely for developments on the U.S.-China trade war following a recent escalation.

The Dow Jones Industrial Average more than erased a 155-point rally on Tuesday as a recession indicator from the bond market worsened and fears around the U.S.-China trade war weighed on equity trading.

Gold rose more than 1% on Tuesday as fears of a possible recession gripped investors following disappointing U.S. economic data and an ongoing U.S.-China trade dispute, while silver breached $18 for the first time in nearly two years.

Source: CNBC


BREAKING NEWS

Washington approved the US$3.3 billion sale of anti-ballistic missiles to Japan on Tuesday, following close behind a series of new ballistic missile tests by North Korea that could threaten the US ally. Japan will buy up to 73 of the Raytheon-made SM-3 Block IIA missiles, which are designed to be fired by the ship-board Aegis system to intercept incoming ballistic missiles, the Pentagon said.

New British finance minister Sajid Javid said on Tuesday he will announce an increase in public spending on health, education and the police next week, but he will stick with the budget rules drawn up by his predecessor.

The Brazilian central bank waded into the foreign exchange market on Tuesday in a rare sale of dollars on the spot market after the real slumped to its weakest level against the greenback in almost a year and within sight of its all-time low. The intervention marked the first time in 10 years that the bank had sold dollars on the spot market without using additional instruments or a commitment to repurchase.

British oil giant BP said Tuesday it will sell all of its Alaska operations for US$5.6 billion, exiting the state after 60 years to help meet divestment goals.

Global industrial gases and engineering group Linde broke ground on Tuesday for its upcoming US$1.4 billion integrated manufacturing complex in Singapore – the single largest investment in the company’s history. Slated for completion in early 2023, the complex will be located and integrated with Linde’s existing gasification facility on Jurong Island, and will quadruple Linde’s production capacity of hydrogen and synthetic gas in Singapore.

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

TECHNICAL PULSE

Ping An Healthcare and Technology Co Ltd

Recommended Action: Technical SELL

Ping An Health (HK: 1833) strong bullish momentum is waning. We expect the stock to be locked within a range.

Read more technical pulse

RESEARCH REPORTS

ARA Asset Management Limited – Rapidly growing real estate manager

Credit View, analyst – Timothy Ang

ARA Asset Management Limited (ARA) is a global integrated real assets fund manager. As at 30 June 2019, Gross Assets Managed by ARA Group and its Associates is more than S$83bn across over 100 cities in 23 countries.

(+) Stable income operating model

(+) Established stakeholders

(-) Depressed interest coverage ratio when including perpetual bond payments

(-) Private company, possible re-listing


CITIC Securities Co., Ltd. – Leading brokerage company in different business

Analyst: Jieyuan Zheng, Chua Wei Ren

– CITICS reported 1H19 net profit of RMB 6.4bn, up 15.8% YoY.

– 1H19 revenue of RMB 28.39bn, up 4.59% YoY, of which the securities trading revenue increased 3.76 % YoY to RMB 10.4mn.

– Overall, we are positive on CITICS due to: 1) its leading positions in asset management and investment banking business; 2) Competitive on the newly launched Kechuang board. CITICS currently trades at 0.99 P/B and 15.1 P/E.


Read more research reports

Webinar Of The Week

Market Outlook: : (PSR) Golden Energy and Resources Ltd, CapitaLand Limited, Singapore REITs Monthly, Phillip US/China Weekly, Phillip Singapore Weekly & Technical Outlook

Date: 26 August 2019

For more on Market Outlook

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.