Daily Morning Note – 28 Sep 2020


U.S. equity-index futures began the week with modest gains and stocks in Asia were on course to open marginally higher as investors weighed further signs of recovery in China against more virus outbreaks in some parts of the world.

Currencies began the week with muted moves, with the dollar steady against most G-10 peers early Monday. S&P 500 futures ticked up after the gauge rose on Friday, when equity-index futures in Japan and Australia edged higher. Crude oil slipped.


The sale of Bedok Point by Frasers Centrepoint Trust (FCT) at S$108 million had raised questions from shareholders given that it was acquired at S$129 million. In response to shareholder queries ahead of FCT’s extraordinary general meeting (EGM), the manager of FCT said that the mall’s size constraint and the lack of direct connectivity to key transportation nodes limited its ability to be the dominant mall within Bedok Town Centre.

The acquisition of Thye Hong Centre by Lian Beng’s subsidiary SLB Development had raised questions over whether the move was an indicator that the group will be able to resume distributing dividends going forward. No final dividend was declared by Lian Beng for its FY20 ended May 31 “so as to retain funds for working capital requirements of the group in view of the uncertainty due to Covid-19 pandemic”, said the group in its financial statements.

Catalist-Listed Synagie Corporation has been actively seeking opportunities to expand its insurtech business, said the group in response to shareholder’s queries ahead of its extraordinary general meeting. Among upcoming acquisitions and new deals include its partnership with leading computer manufacturers to bundle or package the group’s accidental damage protection solutions and third-party administration services in major government tenders for the supply of laptops and tablets.

Mainboard-listed Addvalue Technologies is in favour of raising funds through private placements given that it is faster and more certain than a rights issue unde the current “challenging capital market conditions aggravated by the Covid-19 pandemic”. The communications technology products developer had issued several private placements that are lower than market prices, prompting shareholders’ to query why the company has not considered giving a rights issue with the same discount price to shareholders.

Independent director of Catalist-listed oil and gas-related company Teho International, Kelvyn Oo, is assisting the Commercial Affairs Department (CAD) with investigations in relation to health-care provider New Silkroutes Group. The CAD is reportedly looking into a possible offence under Chapter 289 of the Securities and Futures Act, which regulates activities and institutions in the securities and derivatives industry.

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


Technical Analysis: Singapore Stocks – Weakness is displayed after 2,500 support invalidated

Analyst: Chua Wei Ren

– Positive news of renewed U.S fiscal spending spurs the STI to close on a positive note on last Friday.

– Despite a rise, Prices remain below 2,500 level and it indicate weakening momentum.

– Prices may have a short term rebound before embarking on a continue sell-down in Q42020 to complete wave (v).

Technical Analysis: U.S Market – Still in a bullish trend

Analyst: Chua Wei Ren

– The U.S markets had a positive relief on last Friday closing after a 3 week continuation downside.

– Despite a strong downside, the bullish trend is still intact but we have lower our target levels in the short term for all three major U.S index from our 7th September report.

– There will be further correction before a rebound happen.

>> Read more technical reports


SG Bonds Weekly – Week 40

Credit Analyst: Timothy Ang

– Asian bond spreads widened significantly mainly on concerns of China Evergrande Group’s bond maturities.

– Centurion invited holders of its existing S$60 million 5.5% due-2022 notes to exchange them for new 3.5-year notes at a premium and/or to sell them for cash at par.

– OCBC Bank priced a S$200,000,000 3.00% Perpetual Capital Securities first callable in 2030.

>> Read more research reports

HK Reports – Read up on our Hong Kong reports here


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