Daily Morning Note – 30 June 2020
PHILLIP SUMMARY
Stocks in Asia Pacific rose in Tuesday morning trade as investors await the release of China’s official manufacturing Purchasing Manager’s Index. The Nikkei 225 in Japan rose 1.75% in early trade, following its more than 2% slide on Monday. The Topix index also added 1.5%. In South Korea, the Kospi gained 1.39%. Meanwhile, the S&P/ASX 200 in Australia added 0.66%. Overall, the MSCI Asia ex-Japan index traded 0.33% higher. Investors await the release of China’s official manufacturing PMI for June, set to be released around 9:00 a.m. HK/SIN on Tuesday. Economists in a Reuters poll have a median forecast of 50.4 for the data print, above the 50 level that indicates expansion in activity.
BREAKING NEWS
SINGAPORE Press Holdings (SPH), which publishes The Business Times, is setting up a joint venture (JV) with Keppel Corporation to develop and operate data centre facilities at SPH’s Genting Lane property. In a regulatory filing yesterday, SPH announced that it will hold 40 per cent of the JV company, named Memphis 1, while units of Keppel will hold the remaining 60 per cent.
DBS on Monday launched a sustainable and transition finance framework and taxonomy, as it partners clients from key industries to transition to a low-carbon economy. The lender said it is the first Singapore bank to offer transition financing with its latest framework. It will evaluate the transitional qualities of the economic activities, and whether its clients have a strategy to adapt their businesses to be in line with the Paris Agreement.
LUXURY watch retailer The Hour Glass Group has clocked its best performance to date, having reported earnings of S$76.2 million for the full year ended March 31. The listed retailer’s net profit rose 8 per cent year on year, helped by stronger income in the first half of the financial year. In a regulatory filing on Monday, the company’s financial statements showed that after-tax profit jumped 26 per cent in the six months to last September. But in the second half of FY2020, net profit weakened by 3 per cent.
ASCOTT Residence Trust (ART) has announced the reset distribution rate of 3.07 per cent for the S$250 million perpetual issue that it has decided against redeeming on its first call date tomorrow. This rate is lower than the 4.68 per cent when the issue was launched, but marginally higher than what analysts had earlier estimated.
HH Healthcare sank into the red for the first quarter to March, weighed down by impairment on an investment in India and foreign currency translation losses. The Malaysia-registered hospital operator, which is dual-listed on both sides of the Causeway, reported a loss of RM319.8 million (S$104.3 million) for the FY2020 first quarter, against earnings of RM89.5 million a year ago. Loss per share was 3.9 sen, versus earnings per share of 0.78 sen for the preceding year.
Source: SGX Masnet, The Business Times, Bloomberg, Channel NewsAsia, Reuters, PSR
TECHNICAL PULSE
Genting Singapore Ltd
Analyst: Chua Wei Ren
Recommended Action: Technical SELL
Genting Singapore (SGX: G13) has broken below the support turned resistance level at $0.785 based on our report dated 11th June 2020.
>> Read more technical reports
RESEARCH REPORTS
SG Bonds Weekly – Week of 29 June 2020
Credit Analyst: Timothy Ang
– Markets await the Federal Reserve Chair Jerome Powell’s testimony on Wednesday, as well as key data on the Singapore economy later in the week
– Last week’s successful ST Telemedia bond issuance suggests our bond markets are still active and flush with liquidity
HK Reports – Read up on our Hong Kong reports here
RESEARCH VIDEOS
Webinar Of The Week
Market Outlook: (PSR) Yoma Strategic Holdings (Initiation), SG REITs Sector and Phillip Singapore Weekly
Date: 22 June 2020
Phillip Research in 3 minutes: #23- Yoma Strategic Holdings; Initiation
For more videos on Phillip in 3 Mins
| Disclaimer |
| 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 揳s 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. |
