Daily Morning Note – 28 August 2018

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YOUR PHILLIP SUMMARY

U.S. stocks rose to fresh all-time highs and the Peso rallied versus the Dollar as the Trump administration closed a new bilateral trade deal with Mexico, called The United States-Mexico Trade agreement, leaving behind the old NAFTA name. The new deal will last 16 years and will be reviewed every six years.

Bank shares surged, led by gains in Goldman Sachs, Morgan Stanley, Citigroup and J.P. Morgan Chase. In Asia, China’s central bank, the People’s Bank of China (PBOC), reintroduced a policy adjustment aimed at supporting the yuan on Friday. The move, coupled with US Federal Reserve Chairman Jerome Powell’s comments last Friday on “further, gradual” rate hikes, sent the Shanghai Composite up by 1.9 percent overnight.


RESEARCH REPORT

Geo Energy Resources Ltd – Higher start-up mining cost

Recommendation: BUY, Last Done Price: S$0.22

Target Price: S$0.34, Analyst: Chen Guangzhi

– 10mn tonnes of production target is on track.

– Cash cost will be higher this year.

– Look forward to a new offtake agreement and a new coal mine acquisition.


BREAKING NEWS

President Donald Trump on Monday claimed he’d made a major breakthrough in trade relations between the United States and Mexico – suggesting he’d reached a deal to replace the North American Free Trade Agreement (Nafta).

Oil prices edged up on Monday, supported by a strengthening equities market and news that the United States and Mexico agreed to overhaul the North American Free Trade Agreement (Nafta).

The board of Datapulse Technology on Monday announced the appointment of Aw Cheok Huat, a non-independent non-executive director, as the chairman of the board with effect from Aug 27, 2018.

CapitaLand on Monday said that it has agreed to sell to CapitaLand Mall Trust (CMT) its 70 per cent stake in Westgate – the retail component of an integrated retail and office development in Jurong – for S$789.6 million.



Source: SGX Masnet, Bloomberg, Reuters, The Business Times, Channel NewsAsia, Phillip Securities Research

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