Daily Morning Note – 29 January 2020
WEEKLY MARKET OUTLOOK WEBINAR
Stocks rose on Tuesday following the market’s biggest sell-off in more than three months as investors grapple with lingering fears over a possible coronavirus outbreak.
The Dow Jones Industrial Average jumped 187.05 points, or 0.7%, to 28,722.85, snapping a five-day losing streak. The S&P 500 climbed 1% to 3,276.24 while the Nasdaq Composite advanced 1.4% to 9,269.68. At its high of the day, the Dow was up more than 280 points.
ELITE Commercial Reit braved the choppy market to launch its initial public offering on Tuesday, pricing its units at £0.68 or S$1.21 per unit, which will translate to a forecast distribution yield of 7.1 per cent for 2020 and 7.2 per cent for 2022.
HYFLUX white knight Utico will raise the pot for adviser fees to S$50 million if it receives the support from all advisers for the Hyflux scheme and restructuring agreement (RA) at a court hearing set to take place on Jan 29, it said in a letter dated Jan 28 to the water treatment firm.
CATALIST-LISTED Transcorp Holdings has on Jan 17 signed a non-binding letter of intent with undisclosed investors to raise about S$1 million, its board of directors said on Tuesday.
MAPLETREE Logistics Trust (MLT) is looking to acquire an effective interest of 98.47 per cent in a freehold logistics property in Kobe, Japan, for some 22.2 billion yen (S$272.5 million), its manager said on Tuesday morning in a regulatory update.
IN response to the Wuhan virus spread in China, the manager of Sasseur Real Estate Investment Trust (Sasseur Reit) has temporarily shuttered four outlet malls owned by the trust in the country.
Source: SGX Masnet, The Business Times, Bloomberg, Channel NewsAsia, Reuters, PSR
Ascendas Real Estate Investment Trust
Recommended Action: Technical BUY
Ascendas (SGX: A17U) made a bullish comeback and based on the technicals, we expect Ascendas to break even higher.
Frasers Centrepoint Trust – Positive rental reversions kicking in
Recommendation: ACCUMULATE (Maintained), Last Done: S$2.86
Target Price: S$3.11, Analyst: Natalie Ong
– 1Q20 NPI and DPU in line with our forecast.
– Positive rental reversions of 5% for 1Q20. Revenue growth supported by continued positive rental reversions and improved occupancy
– Maintain ACCUMULATE with an unchanged TP of S$3.11. FCT is a beneficiary of necessity spending and the intensification of Woodlands and Punggol.
BHG Retail REIT – From strength to strength
Recommendation: Not Rated (Site Visit Note), Last Done: S$0.69
Target Price: NA, Analyst: Natalie Ong
– Active management keeps BHG’s community shopping malls relevant amidst e-commerce struggle
– A measured entry into China’s lucrative luxury sector
– SKP’s track record in the luxury-goods sector provides support and runway for the management and further expansion of luxury outlet segment within BHG REIT’s portfolio
Webinar Of The Week
Market Outlook: (PSR) Singapore Weekly & Technicals
Date: 20 January 2020
Phillip Research in 3 minutes: #16- JEP Holdings Ltd
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