Daily Morning Note – 3 April 2019

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YOUR PHILLIP SUMMARY

The Dow Jones Industrial Average DJIA, -0.30% fell 79.29 points, or 0.3%, to 26,179.13, weighed down in large part by a weak earnings report from Walgreens Boots Alliance Inc. WBA, -12.81% The S&P 500 index SPX, +0.00% rose 0.05 point to 2,867.24, while the Nasdaq Composite Index COMP, +0.25% rose 19.78 points, roughly 0.3%, to 7,832. Stocks got off to a strong start after a purchasing index reading for China pointed to the first expansion in activity in the country’s manufacturing sector in four months, which was followed by a stronger-than-expected reading for the Institute for Supply Management’s U.S. manufacturing index.



BREAKING NEWS

Oil hits 2019 high as supply squeeze looms. Brent nears US$70/barrel. Oil prices on Tuesday hit their highest level so far in 2019, with Brent crude approaching US$70 a barrel, on the prospect that more sanctions against Iran and further Venezuelan disruptions could deepen an Opec-led supply cut. Brent futures reached a session peak at US$69.52 a barrel, the highest since Nov 13. The global benchmark rose 36 cents, or 0.52 per cent, to settle at US$69.37 a barrel. US West Texas Intermediate (WTI) crude rose 99 cents, or 1.61 per cent, to settle at US$62.58 a barrel, after touching US$62.75, its highest level since Nov. 7.

Tritech subsidiary signs agreement for 727m yuan project in China. The project involves the construction, upgrading and expansion of a sewage treatment plant and associated sewage pipe networks. It was awarded by an authority in Laifeng county, Hubei province in China.

Ntegrator bags S$58.6m contract from repeat customer. The contract involves the installation of pipelines and manholes, the installation, maintenance and diversion services for infrastructure cables, and the service provision and maintenance of business services across the eastern, western and central parts of Singapore. The project commenced on April 1, 2019 and covers a two-year period, with an option to extend for a further period of one year.

Nam Cheong’s auditors can’t conclude whether group can be assessed on going concern basis. The auditors, Foo Kon Tan LLP, said Nam Cheong’s statements were prepared on a going concern basis, premised on a key assumption that there are no claims from creditors, primarily the Non-Fujian Group Shipyards. Nam Cheong has yet to terminate the contracts with the shipyards or restructure the debts owing to the shipyards, which are reasonably likely to have a material effect on its financial condition and operations, said the auditors.

CNMC Goldmine says unmined gold resources at Sokor mine up 26%. Catalist-listed CNMC Goldmine Holdings said an annual independent review found its flagship Sokor project in Malaysia’s Kelantan state had a resource estimate 914,000 ounces of gold in the ground as at end-Dec 2018.

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

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