Daily Morning Note – 3 August 2018

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YOUR PHILLIP SUMMARY

Apple Inc. became the first U.S.-based company with a market value of $1 trillion, four decades after it was co-founded by Steve Jobs in a Silicon Valley garage. Shares of the consumer-technology giant rose 2.9 percent to close at $207.39 in New York on Thursday, giving it a market capitalization of $1.002 trillion.

Equity futures signaled gains for Japan, Chinaand Hong Kong. Tech companies lifted U.S. stocks as the gains in Apple overshadowed broader concerns on trade tensions. Exporters such as Boeing Co., 3M Co. and DowDuPont Inc. weighed on the Dow Jones Industrial Average after Donald Trump asked his trade representative to consider hiking tariffs on $200 billion of Chinese goods.

Wall Street’s main regulator is boosting its scrutiny of brokerages that deal in cryptocurrencies, according to two people familiar with the matter, the latest sign that authorities want to know more about a burgeoning market that they fear might be full of misconduct.


RESEARCH REPORTS

Y Ventures Group Ltd – Building a platform of platforms
Recommendation: BUY(Upgraded), Last Done Price: S$0.50
Target Price: $0.70, Analyst: Alvin Chia
– Luminore 8 Pte Ltd, a Y Ventures subsidiary, has launched a US$50m Initial
Coin Offering (ICO) to fund the development of a global buying platform called
AORA. It will allow users to purchase consumer products online using
cryptocurrency.
– We upgrade our NEUTRAL recommendation to BUY with an unchanged target
price of S$0.70. Our upgrade is due to the recent price weakness. AORA is in
its early stages, thus we are not changing our fundamental view on the Group.
However, if successful, the contribution will be tremendous.

China Aviation (Singapore) Oil – Margin improvement from underlying business
Recommendation: BUY, Last Done Price: S$1.53
Target Price: S$2.00, Analyst: Chen Guangzhi
– Total volumes grew together with margin improvement
– More modest growth in profits from associates due to Pudong’s
underperformance
– The acquisition of Navires Aviation Limited is expected to generate synergies


BREAKING NEWS

Bank of England raises interest rates for the second time since the financial crisis The Monetary Policy Committee voted unanimously for an increase in rates from 0.5 to 0.75 percent.

Apple shares reached the historic $1 trillion market value Thursday, hitting the $207.05 price that was needed to get to the milestone. The tech giant is the first publicly traded U.S. company to reach a $1 trillion market capitalization.

SEC Steps up crypto scrutiny and is seeking specific information about fees generated from trading, financing and initial coin offerings.

UOB on Friday reported a 28 per cent rise in net profit for the second quarter, lifted by stronger overall operating income. Net profit for the three months ended June 30, 2018 stood at S$1.08 billion, up from S$845 million.

Sembcorp Industries on Friday posted a second-quarter net profit of S$81.9 million, up 46.8 per cent from S$55.8 million last year, thanks to higher contributions from its utilities and urban development segments.

Perennial Q2 profit halves to S$8.6m with Capitol fully consolidated.

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

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

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