Daily Morning Note – 31 May 2019


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Stocks rose on Thursday, regaining some of the losses from the previous session, but the market’s gains were kept in check as worries over the global economy and trade lingered. The Dow Jones Industrial Average closed 43.47 points higher at 25,169.88, led by McDonald’s and Coca-Cola. The S&P 500 climbed 0.2% to 2,788.86 as the real estate and tech sectors outperformed.

U.S. Trade Representative Robert Lighthizer sent a letter to congressional leaders on Thursday, kicking off the process of approving updates to the North American Free Trade Agreement.


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KSH Holdings posted a fall of 74.8 per cent in profit attributable to shareholders to S$7.67 million for the year ended March 31, 2019, down from S$30.4 million the year before, the construction, property development and property management group said on Thursday night. This was despite revenue rising 51.4 per cent to S$200 million from S$132.1 million the year before. Operating expenses rose 62.8 per cent to S$190.2 million, of which construction costs formed the bulk at S$168.1 million, 73.9 per cent higher than the year before.

IHH Healthcare Berhad saw profit attributable to shareholders rise 56 per cent to RM89.5 million (S$29.5 million) for the first quarter ended March 31, up from RM57.2 million in the year-ago period, it announced after market close on Thursday. Revenue for the quarter was RM3.64 billion, up 28 per cent year on year from RM2.86 billion.

Catalist-Listed Indonesian coal miner Resources Prima Group on May 30 responded to queries from Singapore Exchange Securities Trading (SGX-ST) on the termination of a coal-hauling service agreement with its subsidiary Energy Indonesia Resources (EIR), announced on May 15. On May 13, EIR had received a letter of termination from Coalindo Adhi Nusantara (CAN) regarding the coal-hauling service agreement, which had been signed in October 2017 and was to be effective from Nov 1, 2017 for a duration of two years.

Sunpower Group has secured a 77 million yuan (S$15.4 million) contract from a repeat customer, which is expected to have a positive impact on its FY 2019 and 2020 performance, the environmental protection solutions provider said on Thursday after market close. Under the manufacturing and services (M&S) contract with Jiangsu Hailun Petrochemical Co, Sunpower will provide heat exchanger equipment for an upgrading project at Jiangsu Hailun’s chemical production facility.

Watch-Listed USP Group saw a net loss attributable to owners of S$21.3 million for the year ended March 31, 2019, compared with a profit of S$47,000 the previous year. This was despite revenue rising 6.1 per cent to S$41 million, and gross profit rising 8.6 per cent to S$13.6 million. If not for one-off impairment and write offs, loss after tax from continuing operations would have been about S$1.4 million, narrowing from the previous year’s figure of S$2.6 million, said USP Group.

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

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