Daily Morning Note – 3 September 2018

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YOUR PHILLIP SUMMARY

Stocks behaved sluggishly after a report Thursday suggested President Trump was planning to go ahead with tariffs on Chinese imports. Elsewhere in North America, reports that the U.S. and Canada were unable to reach a trade deal on Friday kept major indexes under pressure, although the S&P 500 erased its losses late in the session after officials said they would resume trade talks this week.

The Dow Jones Industrial Average fell 22.10 points (-0.1%) to 25,964.82 on Friday. The S&P 500 gained 0.39 point (+0.1%) to 2,901.52 while the Nasdaq Composite edged up 21.17 points (+0.3%) to 8,109.54.

In the foreign exchange market, India’s rupee and the Argentine peso recently hit record lows, while Turkey’s lira fell as much as 25% against the U.S. dollar for the month signals much distress in the emerging markets.


RESEARCH REPORT

800 Super Holdings Ltd – Oversold!

Recommendation: BUY (Upgraded), Last Close Price: $0.64

Target Price: $1.03 (previously $1.30), Analyst: Richard Leow

– FY18 revenue was within expectation

– Negative surprise of a 4Q18 loss dragged FY18 PATMI 25% lower than our
estimate

– One quarter of loss during ramp-up is not representative of normalised
business

– Overdone sell-down presents an opportunity to purchase mispriced stock

– Upgrade to BUY from Accumulate; new target price of $1.03 (previously
$1.30)


TECHNICAL PULSE

JSH USD Ltd – Weekly timeframe – Bullish

– The bullish rejection off the support area on the week ended 31/08/18
formed a hammer rejection signals a high likelihood of a reversal higher next.

– Expect the long-term uptrend to resume next for price to test the 37.50
resistance area followed by 42.29.


For more information and additional disclosures, refer to the link here.

BREAKING NEWS

U.S. President Donald Trump said on Saturday there was no need to keep Canada in the North American Free Trade Agreement and warned Congress not to meddle with the trade negotiations or he would terminate the trilateral trade pact altogether.

Qatar plans to invest billions of dollars more in Germany and will broaden its focus to the country’s medium-sized companies.

Ford Motor Co plans to drop production of some of its automobile models as part of a planned operational restructuring announced earlier this year.

Founder and CEO of JD.com Richard Liu was arrested Friday in Minnesota on a charge of criminal sexual conduct before being released a day later.

Unitholders of ESR-Reit on Friday approved a merger with Viva Industrial Trust.

FRASERS Logistics & Industrial Trust has acquired two prime industrial properties in Australia from Frasers Property Australia Pty Limited, a wholly-owned subsidiary of sponsor Frasers Property Limited for a total of A$62.6 million (S$62.3 million).

Tee Medical Services’ acquisition of the Medical Waste Treatment Business from SembCorp Environment Pte. Ltd. has been completed.

Golden Energy and Resources has completed the acquisition of 66.9998% of the issued and paid-up share capital of PT Golden Energy Mines Tbk (“GEMS”).

IMPERIUM Crown on Sunday said its subsidiary, Fei County Wonder Stone Characteristic Town Development, has signed a non-binding memorandum of understanding (MOU) with Sim Leisure Group (SLG) to collaborate to build Escape Theme Park at its Wonder Stone Park in Shandong, China.

AsiaMedic said on Sunday that its sales and purchase agreement (SPA) to acquire LuyeEllium Healthcare Co has lapsed.

OCBC Bank chief operating officer Ching Wei Hong will be the next chairman of electronic funds transfer group Nets, beginning Sept 1.



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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