Daily Morning Note – 3 June 2019


Register HERE for MONDAY’s 11.15am webinar.

Archived webinars available.


China’s government says it’s willing to work with the U.S. to end an escalating trade war, but blames President Donald Trump’s administration for the collapse in talks and won’t be pressured into concessions.

Asian stocks were poised to start the week on the back foot after the feud between the world’s two-largest economies grew over the weekend. The yen held near a six-month high.

President Donald Trump opened another potential front in his trade war on Friday, terminating India’s designation as a developing nation and thereby eliminating an exception that allowed the country to export nearly 2,000 products to the U.S.


Jardine Cycle and Carriage

Current Sentiment: BULLISH

Jardine C&C had an unexpected turn last Friday. It swiftly broke off the bearish flag and reversed immediately at the demand zone. This is the key indicator that the stock will continue its rally thereafter.


Singapore Telecom Sector – Restructuring and recovering

Recommendation: OVERWEIGHT (Maintained), Analyst: Alvin Chia

– Mobile and Pay-Tv revenues expected to be weak in 2019 and stabilise in 2020.

– Enterprise revenue to surge 20% in 2019 on the back of smart nation initiatives,
cyber-security and managed services.

– TPG achieved nationwide outdoor coverage in Singapore. Commercial launch is
expected to be in late 2019. ACCC opposes the merger of TPG and Vodafone.

– Singtel and NetLink remain our top picks in the sector. We like Singtel for its
recovering regional associates and NetLink for its stable 6% distribution yield.

– Maintain OVERWEIGHT on the Singapore Telecom sector.

Singapore Coal Monthly – Cooling down

Recommendation: HOLD, Analyst: Chen Guangzhi

– Room for 180mn tonnes of capacity cut in China during 2019-2020

– Indonesia and China coal associations collaborate in the coal mining sector

– Indonesia government rejects calls for DMO reduction

Real Estate Agencies (Sector Initiation) – Can have pie and eat it, too

BUY (Initiation), Analyst: Tara Wong

– Both PropNex and APAC Realty (operating under the ERA brand) have close to
half the number of real estate agents in Singapore and handled an average
c.85% of all property transactions (by no. of units) in 2018.

– High unleveraged return on capital, due to asset-light nature of business and
variable pay structure of most of the salesforce.

– Resilient even in industry downturns, matching or beating the movements of
the property market.

– Initiate coverage on APAC Realty Limited (BUY; TP S$0.65) and PropNex Limited
(BUY; TP S$0.63)

Read more research reports


China decries US tariff ‘coercion’ as trade rhetoric heats up. Beijing defends drawing up blacklist and FedEx probe as defence minister joins dispute

Too many unknowns leave China traders with no clue on stocks. How to put a price on a full-blown trade war has emerged as the key challenge for China’s stock investors.

US stock-index futures slid after China’s government blamed the US for the latest collapse in trade talks.

Pick your poison: For Fed, it’s higher inflation or an inevitable return to QE. The Great Recession ended a decade ago this month, but for the US Federal Reserve, the fallout has posed an era-defining choice: Either jolt Americans to expect higher inflation, or keep the printing press ready for the next economic slide.

The Federal Reserve is convening experts to discuss overhauling how the world’s most powerful central bank manages the US economy.

INDOFOOD Sukses Makmur has raised its buyout offer price for Indofood Agri Resources (IndoAgri) to 32.75 Singapore cents per share from 27.75 Singapore cents previously, the mainboard-listed company announced in a bourse filing on Sunday.

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

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

The information contained in this email and/or its attachment(s) is provided to you for information only and is not intended to or nor will it create/induce the creation of any binding legal relations. The information or opinions provided in this email do not constitute an investment advice, an offer or solicitation to subscribe for, purchase or sell the e investment product(s) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of this information. Investments are subject to investment risks including possible loss of the principal amount invested. The value of the product and the income from them may fall as well as rise. You may wish to seek advice from an independent financial adviser before making a commitment to purchase or investing in the investment product(s) mentioned herein. In the event that you choose not to do so, you should consider whether the investment product(s) mentioned herein is suitable for you. PhillipCapital and any of its members will not, in any event, be liable to you for any direct/indirect or any other damages of any kind arising from or in connection with your reliance on any information in and/or materials attached to this email. The information and/or materials provided “as is” without warranty of any kind, either express or implied. In particular, no warranty regarding accuracy or fitness for a purpose is given in connection with such information and materials.
Confidentiality Note
This e-mail and its attachment(s) may contain privileged or confidential information, which is intended only for the use of the recipient(s) named above. If you have received this message in error, please notify the sender immediately and delete all copies of it. If you are not the intended recipient, you must not read, use, copy, store, disseminate and/or disclose to any person this email and any of its attachment(s). PhillipCapital and its members will not accept legal responsibility for the contents of this message. Thank you for your cooperation.


Contact us to Open an Account

Need Assistance? Share your Details and we’ll get back to you


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.  

Investments are subject to investment risks including the possible loss of the principal amount invested. The purchase of a unit in a fund is not the same as placing your money on deposit with a bank or deposit-taking company. There is no guarantee as to the amount of capital invested or return received. The value of the units and the income accruing to the units may fall or rise. Past performance is not necessarily indicative of the future or likely performance of the Products. There can be no assurance that investment objectives will be achieved.  

Where applicable, fund(s) may invest in financial derivatives and/or participate in securities lending and repurchase transactions for the purpose of hedging and/or efficient portfolio management, subject to the relevant regulatory requirements. PCM reserves the discretion to determine if currency exposure should be hedged actively, passively or not at all, in the best interest of the Products.  

The regular dividend distributions, out of either income and/or capital, are not guaranteed and subject to PCM’s discretion. Past payout yields and payments do not represent future payout yields and payments. Such dividend distributions will reduce the available capital for reinvestment and may result in an immediate decrease in the net asset value (“NAV”) of the Products. Please refer to <www.phillipfunds.com> for more information in relation to the dividend distributions.  

The information provided herein may be obtained or compiled from public and/or third party sources that PCM has no reason to believe are unreliable. Any opinion or view herein is an expression of belief of the individual author or the indicated source (as applicable) only. PCM makes no representation or warranty that such information is accurate, complete, verified or should be relied upon as such. The information does not constitute, and should not be used as a substitute for tax, legal or investment advice.  

The information herein are not for any person in any jurisdiction or country where such distribution or availability for use would contravene any applicable law or regulation or would subject PCM to any registration or licensing requirement in such jurisdiction or country. The Products is not offered to U.S. Persons. PhillipCapital Group of Companies, including PCM, their affiliates and/or their officers, directors and/or employees may own or have positions in the Products. Any member of the PhillipCapital Group of Companies may have acted upon or used the information, analyses and opinions herein before they have been published. 

This advertisement has not been reviewed by the Monetary Authority of Singapore.  


Phillip Capital Management (S) Ltd (Co. Reg. No. 199905233W)  
250 North Bridge Road #06-00, Raffles City Tower ,Singapore 179101 
Tel: (65) 6230 8133 Fax: (65) 65383066 www.phillipfunds.com