Daily Morning Note – 28 November 2018
WEEKLY MARKET OUTLOOK WEBINAR
Register HERE for MONDAY’s 11.15am webinar.
Archived webinars available.
YOUR PHILLIP SUMMARY
Stocks bounced back from early losses to close higher Tuesday. Gains in so-called defensive sectors helped to offset anxieties that a near-term resolution to trade tensions between the U.S. and China remain elusive. (DJIA +0.4%; SPX +0.3%; COMP +0.01%)
Apple Inc. shares dropped 0.2% after President Donald Trump said during The Wall Street Journal interview that tariffs could also be placed on iPhones and laptop computers imported from China if the U.S. decides to put tariffs on additional goods.
President Trump and China’s Xi Jinping will meet over dinner Saturday evening in Buenos Aires, marking a pivotal moment in the escalating trade war between the world’s two largest economies.
South Korea has profited so much from the explosion in demand for semiconductors that its economy is now vulnerable to any downturn in the market for these tiny electronic components. They now account for more than 21 percent of exports and two-thirds of earnings at Korea’s biggest company, Samsung Electronics Co. The firm is the nation’s largest private employer and its revenue is equivalent to 15 percent of annual economic output.
Source: Marketwatch, Bloomberg
Thai Beverage PLC – A hangover from every beverage
Recommendation: Reduce (Maintained), Last Close Price: S$0.63
Target Price: S$0.57 (previous S$0.62), Analyst: Paul Chew
– 4Q18 revenue and net profit were below expectations by 17% and 38%. Spirits
volume collapsed and beer business swung into a net loss in weighted down by
falling revenues and surging interest expense.
– Maintain REDUCE with lower SOTP-derived TP of S$0.57 (previously S$0.62) as
we trim our FY19e earnings by 7%.
President Donald Trump and China’s Xi Jinping will meet over dinner Saturday evening in Buenos Aires, marking a pivotal moment in the escalating trade war between the world’s two largest economies.
Federal Reserve officials are moving into a more unpredictable phase of policy-making after two years of removing economic stimulus in regular, quarterly intervals.
Federal Reserve Vice Chairman Richard Clarida said the central bank’s gradual approach to interest-rate hikes is appropriate as U.S. monetary policy gets closer to its optimal longer-run setting.
Oil prices dipped on Tuesday, weighed down by uncertainty over the US-China trade war and signs of increased global crude production, but losses were limited by expectations that crude exporters would agree to cut output at an upcoming Opec meeting.
Mainboard-listed yarn supplier China Gaoxian Fibre Fabric Holdings announced on Tuesday night that its wholly owned subsidiary Zhejiang Huagang Polyester Industrial Co will lease out hostel units and part of its production plant in Zhejiang Province for a total annual rent income of 4.9 million yuan (S$971,354).
Source: CNBC, Bloomberg, Reuters, The Business Times, Phillip Securities Research
Clients of Phillip Securities can keep updated with Country Strategy and Singapore Sector Reports by logging into: www.poems.com.sg > STOCKS > Research
|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.|