Daily Morning Note – 28 Aug 2020
Wall Street ended in a mixed fashion on Thursday following the Federal Reserve’s major inflation policy change, with the S&P posting a new record but the Nasdaq retreating.
The benchmark Dow Jones Industrial Average rose 0.6 per cent at the close to 28,492.27, while the broad-based S&P 500 posted its fifth straight record rising 0.2 per cent to 3,484.55.
But the Nasdaq snapped its streak of five back-to-back records retreating 0.4 per cent to finish at 11,926.16.
The day’s major development was the Fed’s decision to lessen the priority on fighting inflation in favor of maximising employment for low-income families.
Eagle Hospitality Trust has rejected allegations by its sponsor, Urban Commons (UC), that EHT’s subsidiaries are in breach of agreements in which UC entities are master lessees. In a Singapore Exchange filing on Thursday, the Reit’s managers called the allegations baseless, and said that the master lessors – EHT subsidiaries – have issued a response letter on Aug 25, refuting and/or rejecting all the allegations.
IHH Healthcare, in results announced Thursday, sank further into the red for its second quarter ended June 30, as it posted a net loss of RM120.6 million (S$39.5 million), compared to the RM185 million profit a year ago. This was attributed to lower operating performance and the realisation of foreign exchange loss of RM94.8 million from the translation of non-Turkish lira borrowings.
SIA Engineering Company (SIAEC) has acquired the remaining 35 per cent stake in former joint-venture company Heavy Maintenance Singapore Services (HMSS), it announced on Thursday after the market close.
Oil prices eased on Thursday as the market expected a quick recovery for production platforms shuttered ahead of a hurricane that churned through the Gulf of Mexico and slammed Louisiana.
Contracts to buy US previously owned homes increased for a third straight month in July as the housing market continues to outperform the broader economy, which has been hammered by the Covid-19 pandemic. The National Association of Realtors said on Thursday its Pending Home Sales Index, based on contracts signed last month, rose 5.9 per cent to 122.1 last month. Contracts increased in all four regions last month.
Source: SGX Masnet, The Business Times, Bloomberg, Channel NewsAsia, Reuters, PSR
Thai Beverage PCL
Analyst: Chua Wei Ren
Recommended Action: Technical BUY
Thai Beverage (SGX: Y92) downside has turned impulsive after the stock broke below the neckline resistance of the double top weeks ago. However, recent technicals indicate that the stock is taking a pause in the bearish downside and heading for a correction upwards.
Webinar Of The Week
Date: 24 August 2020
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