Daily Morning Note – 31 January 2020

WEEKLY MARKET OUTLOOK WEBINAR

PHILLIP SUMMARY

Stocks closed higher on Thursday after a sharp comeback late in the session erased earlier losses stemming from concerns around the coronavirus.

The Dow Jones Industrial Average gained 124 points, or 0.4%. At its low of the day, the Dow was down 244 points. The S&P 500 ended the day up 0.3%. The Nasdaq Composite also gained 0.3%.

BREAKING NEWS

OUE Commercial Real Estate Investment Trust (C-Reit) has registered a distribution per unit (DPU) of 0.84 Singapore cent for the fourth quarter ended Dec 31, up 12 per cent year-on-year.

ASCOTT Residence Trust’s (ART) distribution per stapled security (DPS) rose by 6 per cent to 2.27 Singapore cents for its fourth quarter ended Dec 31, from 2.15 Singapore cents a year ago.

(a-iTrust) third-quarter distribution per unit (DPU) rose 4 per cent year-on-year to 2.12 Singapore cents for the three months ended Dec 31, 2019.

CREATIVE Technology on Thursday said its net loss narrowed from US$4.92 million a year ago to US$2.8 million for the three months ended Dec 31.

PACC Offshore Services Holdings’ (POSH) application for delisting has been approved by the Singapore Exchange, the loss-making offshore support vessel operator said in a bourse filing on Wednesday night.

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

TECHNICAL PULSE

Technical Analysis: Hang Seng Index

Analyst: Chua Wei Ren, Strategy Report

– Hang Seng Index had a slow recovery from 2009 to 2018, which saw price briefly breaks the 2009 high of 32029.70, closing at 33484.10.

– The failure to sustain above 32029.70 indicates that the Hang Seng bullish momentum is weak.

– Gains in 2019 was limited as price fails to break above the 30000 psychological marks.

Read more technical reports

RESEARCH REPORTS

Singapore Exchange Limited – Deliberate Efforts to Grow

Recommendation: Neutral (Maintained), Last Done: S$8.74

Target Price: S$8.52, Analyst: Tay Wee Kuang

– SGX achieved 2Q20 revenue and net profit in line with our expectations.

– Positive business outlook expected across multiple segments; FICC grew 20% YoY, while DCI business grew a modest 4% YoY to S$26.7mn. The equities business came in flat.

– Acquired ‘Smart Beta’ index firm Scientific Beta for €186mn to propel DCI business.

– We maintain our NEUTRAL call with a revised TP of S$8.52. We peg our TP to 21.5x P/E, 1 SD below SGX’s 5-year mean. We will be expecting SGX’s acquisition plan to be EPS accretive in FY21. Our earnings forecast remains unchanged.

Read more research reports

Webinar Of The Week

Market Outlook: (PSR) Singapore Weekly & Technicals

Date: 20 January 2020

For more on Market Outlook

Phillip Research in 3 minutes: #16- JEP Holdings Ltd

Updates summarised in 3 minutes

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





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