Daily Morning Note – 30 Sep 2019



Asia stocks traded lower Monday morning as investors await the release of the China Purchasing Managers’ Index expected later today.

In Japan, the Nikkei 225 slipped 0.36% as shares of index heavyweight and conglomerate Softbank Group plunged 2.99%. The Topix also shed 0.54%.

South Korea’s Kospi also declined 0.14%. Australia’s S&P/ASX 200 traded largely flat as the sectors were mixed.

Overall, the MSCI-Asia ex-Japan traded 0.1% lower.

Developments on the U.S.-China trade front will also be monitored. The White House is considering curbs on U.S. investments in China, according to a CNBC source. That included the possibility of blocking all American investments in Chinese companies,


Britain’s government knows the outline of what it sees as a possible deal to leave the European Union, Michael Gove, the minister in charge of planning for a no-deal Brexit, said on Sunday.

City Developments Limited (CDL) on Friday announced that it will compulsorily acquire the remaining shares for its London-listed subsidiary Millennium & Copthorne (M&C) held by shareholders who have not yet accepted the final offer of 685 pence per share.

THE Securities Investors Association (Singapore) or Sias clarified on Sunday in a statement that it does not, in fact, support the Hyflux restructuring agreement by potential white knight Utico at this stage as previously reported.

XMH Holdings will be disposing its 80 per cent shareholding interest in its loss-making subsidiary Z-Power Automation (ZPA) for a nominal sum of S$1 to individual Goo Koh Chai.

SECOND Chance Properties intends to undertake a proposed bonus issue of free warrants to subscribe for new shares in the company to raise a maximum of S$1.13 billion in gross proceeds.

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



Recommended Action: Technical BUY

CITIC Ltd (HK: 267) bearish momentum seems to be stalling based on the technicals. The stock may enter a bullish correction

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Venture Corporation Ltd

Recommendation: BUY

Target Price: $17.68

Analyst: Alvin Chia

– Exceptional margins and consistency in capturing a larger profit share of the industry.

– Healthy operating cash-flows and cash holdings to support 4.6% dividend yield.

– Valuation is attractive against its peers due to its superior ROE, margins and balance sheet.

– Beneficiary of the on-going electronics supply chain disruption in China.

– Initiate coverage with a BUY rating and a target price of S$17.68. Our valuation is based on a 14x PE multiple.

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