Daily Morning Note – 31 July 2018


Register HERE for MONDAY’s 11.15am webinar.

Archived webinars available.


Ascendas REIT – Operationally stable
Recommendation: Accumulate (Maintained), Last Close Price: $2.75
Target Price: $2.96 (unchanged), Analyst: Richard Leow
– Gross revenue and DPU were within expectation
– Overall portfolio remains operationally stable
– Lower YoY DPU due to one-off distribution last year
– Maintain Accumulate; unchanged target price of $2.96

Land Transport Sector – Taxi turnaround in sight
Analyst: Richard Leow
– Maintain Overweight on the Land Transport sector, on the positive industry
restructuring and the worst being over for the Taxi industry
– Maintain Accumulate on ComfortDelGro; unchanged target price of $2.69

Singapore Exchange Ltd – A Pause in SGX-NSE Dispute
Recommendation: BUY (Maintained), Last Done Price: S$7.57
Target Price: S$8.93, Analyst: Tin Min Ying
– Revenue was within expectations and PATMI was 3.7% lower than expected
due to higher OPEX from legal fees incurred in relation to SGX-India
derivatives injunction and consolidation of Baltic Exchange.
– Derivatives business continues to drive revenue growth; volume surged 20%
YoY. FX futures achieved a record high of 14.3mn contracts, almost double of
– Final dividend of 15 cents per share proposed (4Q17: 5 cents ordinary, 8 cents
– Change in dividend policy from the percentage of net profit, to one based on
an absolute amount. Quarterly dividends of 7.5 cents/share will be paid
starting from 1Q19.


A third straight bludgeoning for tech stocks drives Nasdaq to 3-week closing low. The Nasdaq Composite Index COMP, -1.39% shed 107.41 points, or 1.4%, to 7,630. The S&P 500 SPX, -0.58% gave up 16.22 points, 0.6%, to 2,802.60, with technology stocks by far the weakest industry, down 1.8%, among the broad-market benchmark’s 11 sectors. DJIA, -0.57% fell 144.23 points, or 0.6%, to 25,306.83.

Oil Rises On Tight Supply Outlook. U.S. West Texas Intermediate crude futures (WTI) rose $1.44, or 2%, to settle at $70.13 a barrel. WTI rose on expectations that U.S. inventories fell last week and worries that an outage at a Syncrude facility in Canada will not be solved as soon as expected, traders said.

US Secretary of State Pompeo warns against IMF bailout for Pakistan that aids China. In an interview with CNBC television, Mr Pompeo said the United States looked forward to engagement with the government of Pakistan’s expected new prime minister, Imran Khan, but said there was “no rationale” for a bailout that pays off Chinese loans to Pakistan.

Trump says willing to meet with Iran leaders ‘any time’. US President Donald Trump said Monday he is happy to meet with Iran’s leaders “any time” and without preconditions, one week after tensions soared between Washington and Tehran.

China’s cabinet vows tough penalties in vaccine scandal case. China has already ordered the arrest of 18 people at Changsheng Bio-technology Co Ltd, the vaccine maker at the heart of the scandal, including its chairwoman Gao Junfang. A meeting of the State Council chaired by Premier Li Keqiang on Monday said enterprises and individuals should be severely punished and banned from the pharmaceutical industry for life.

E-commerce startup Synagie prices IPO at S$0.27 to raise net proceeds of S$9.8m. The IPO comprises a placement tranche of 39.2 million shares and a public offer of 3.8 million shares. Synagie will be listed on the Catalist board of the Singapore Exchange, with a market cap of S$70.7 million immediately upon its debut.

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

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