Daily Morning Note – 29 July 2019

WEEKLY MARKET OUTLOOK WEBINAR

Register HERE for MONDAY’s 11.15am webinar.

Archived webinars available.

PHILLIP SUMMARY

Stocks rose on Friday after strong earnings from tech giants like Alphabet and Intel and a better-than-expected GDP print pushed the S&P 500 to a new all-time high.

The S&P 500 gained 0.7% to close at 3,025.86, posting a record high. The Nasdaq Composite also hit an all-time high, rising 1.1% to 8,330.21. The Dow Jones Industrial Average closed 51.47 points higher, or 0.2%, at 27,192.45.


BREAKING NEWS

DBS Q2 profit jumps 17% to $1.6b, beating market estimates. The first Singapore bank to kick off the sector’s results, maintained its mid-single-digit per cent loan growth forecast for the full year. The bank’s net interest income rose by 9 per cent in the latest quarter as loans grew 5 per cent in constant-currency terms and net interest margin, a key gauge of profitability, improved six basis points to 1.91 per cent.

Temasek Holdings unit Heliconia Capital is investing S$5 million in Catalist-listed HC Surgical Specialists to support the medical services group’s regional expansion. Under a July 26 investment agreement, Heliconia will invest S$5 million via a three-year bond that’s convertible at its option into ordinary shares in HC Surgical. Heliconia will also receive a three-year option to subscribe for up to S$5 million of new ordinary shares in the firm.

iFast Corporation on July 27 reported net profit of S$2.45 million for the second quarter ended June 30, 2019, down 16.5 per cent from S$2.94 million in the year-ago period. iFast said the fall in net profit. Revenue dipped 0.9 per cent to S$30.6 million from S$30.9 million in the year-ago period. iFast attributed this to lower front-end commission income, as customers’ investment subscription in unit trusts fell amid weak investor sentiment.

The Fed is expected to cut interest rates for the first time in more than a decade Wednesday, a pre-emptive move as concerns rise about the impact of the trade wars and a slowing global economy. Friday’s July jobs report should show that the U.S. economy is still strong, with 170,000 nonfarm payrolls being added and an extremely low unemployment rate of 3.7%, according to Refinitiv.

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

TECHNICAL PULSE

PepsiCo INC

Recommended Action: Technical LONG

PepsiCo has just completed its 5th Minor phase rally wave. Based on the technicals, the expanding triangle corrective pattern is edging towards completion as the price level has hit the E leg of the bottom triangle pattern.

Read more technical pulse

TECHNICAL PULSE

Frasers Centrepoint Trust – All the right moves, in all the right places

Recommendation: ACCUMULATE (Upgraded), Last Done: S$2.68

Target Price: S$2.77, Analyst: Natalie Ong

– 3Q19 NPI and DPU in line with our forecast.

– Better performance despite softer retail sector outlook; higher portfolio
occupancy and positive rental reversions.

– Growth catalysts include FCT’s ROFR pipeline, heightened positioning of
Causeway Point, renewed strength in fringe retail rents and possible
acquisition of PGIM’s assets.

– Upgrade to ACCUMULATE with higher TP of S$2.77 (prev. S$2.31). Higher
target price due to the acquisition of Waterway Point (33.3% stake) and a
lower risk-free rate assumption.

JP Morgan – Supported by strong consumer spending

Analyst: Edmund Xue

– Consumer loan growth to hold up. Average loans were up 2% YoY, driven
largely by consumer credit card loans.

– Deposit repricing stabilising in response to a low interest rate environment.

– Mortgage loans growth held up by low mortgage interest rates.

Webinar Of The Week

Market Outlook: : 2019-07-22 ((PSR) Singapore REITs Monthly, Keppel DC, CapitaLand Comm Trust, China Weekly, SGweekly, US weekly & Technical Analysis)

Date: 22 July 2019

For more on Market Outlook

Clients of Phillip Securities can keep updated with Country Strategy and Singapore Sector Reports by logging into: www.poems.com.sg > STOCKS > Research

Read the research report(s), available through the link(s) above, for complete information including important disclosures Important Information





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IMPORTANT INFORMATION

This material is provided by Phillip Capital Management (S) Ltd (“PCM”) for general information only and does not constitute a recommendation, an offer to sell, or a solicitation of any offer to invest in any of the exchange-traded fund (“ETF”) or the unit trust (“Products”) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. You should read the Prospectus and the accompanying Product Highlights Sheet (“PHS”) for key features, key risks and other important information of the Products and obtain advice from a financial adviser (“FA“) pursuant to a separate engagement before making a commitment to invest in the Products. In the event that you choose not to obtain advice from a FA, you should assess whether the Products are suitable for you before proceeding to invest. A copy of the Prospectus and PHS are available from PCM, any of its Participating Dealers (“PDs“) for the ETF, or any of its authorised distributors for the unit trust managed by PCM.  

An ETF is not like a typical unit trust as the units of the ETF (the “Units“) are to be listed and traded like any share on the Singapore Exchange Securities Trading Limited (“SGX-ST”). Listing on the SGX-ST does not guarantee a liquid market for the Units which may be traded at prices above or below its NAV or may be suspended or delisted. Investors may buy or sell the Units on SGX-ST when it is listed. Investors cannot create or redeem Units directly with PCM and have no rights to request PCM to redeem or purchase their Units. Creation and redemption of Units are through PDs if investors are clients of the PDs, who have no obligation to agree to create or redeem Units on behalf of any investor and may impose terms and conditions in connection with such creation or redemption orders. Please refer to the Prospectus of the ETF for more details.  

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