Daily Morning Note – 31 July 2018


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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

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