Daily Morning Note – 4 Aug 2020

PHILLIP SUMMARY

Asian stocks looked poised for gains Tuesday after a technology-fueled rally in the U.S. amid positive economic data and the potential for further stimulus. The dollar held gains.

Futures pointed higher in Japan, Australia and Hong Kong. S&P 500 contracts were little changed. Earlier, the Nasdaq 100 reached a record as traders sought out companies poised to do best in a stay-at-home economy. Apple Inc. set an all-time high and Microsoft Corp. gained as it tried to salvage a deal for the U.S. operations of TikTok. The dollar rebounded following its worst July in a decade and Treasuries fell across the curve as data showed U.S. manufacturing expanded in July at the fastest pace since March 2019.

BREAKING NEWS

CapitaLand on Monday said that it and other shareholders have, through a series of transactions, divested an aggregate 40 per cent equity stake in Guangzhou Kai Ke Xing Mao Real Estate Development (GKK) to an unrelated purchaser for RMB395.7 million (S$78.6 million). CapitaLand held its stake in GKK through its wholly-owned subsidiary, CLC Investment Seven.

Suntec Reit announced on Monday that its office development, Olderfleet, at 477 Collins Street in Melbourne, Australia, received practical completion on July 31, 2020. Suntec Reit co-owns the development with Australian property firm Mirvac. Chong Kee Hiong, chief executive of the manager, said that with income commencement from this month, the development will enhance the Reit’s income and improve its earnings and distribution to unitholders, with the long weighted average lease expire of about 11 years and annual rental escalations of between 3.5 per cent and 4 per cent.

The manager of Lippo Malls Indonesia Retail Trust (LMIRT) said on Monday that it had completed the divestment of Binjai Supermall for 262 billion rupiah (S$24.5 million). In accordance with the revised conditional sale-and-purchase agreement, 10 per cent of the consideration has been deposited in an escrow account to be held for up to 90 days, pending the assignment or novation of at least 80 per cent of the tenant leases of the Binjai Property from vendor to the purchaser.

Hyphens Pharma on Monday said that it has procured all rights, titles and interests in the trademarks of hair-loss products CG 210 and CG4S from Legacy Healthcare (Switzerland) for Singapore and Malaysia, paving the way for it to sell and distribute the CG 210 product series and the CG4S shampoo in the two countries. The pharmaceutical and consumer healthcare group said that skin health is a focus area for Hyphens, and that the latest additions complement its other brands such as Ceradan and TDF Derma Formula in its “proprietary brands” segment by adding scalp care to its dermatology portfolio.

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

TECHNICAL PULSE

Sheng Shiong Group Limited

Analyst: Chua Wei Ren

Recommended Action: Technical Sell

Sheng Siong Group (SGX: OV8) bullish upside has been going strong but recent technicals suggest that the stock may enter into a short term correction to its nearest support before continuing its rally.

>> Read more technical reports

RESEARCH VIDEOS

Webinar Of The Week

Market Outlook: Market Outlook: SG Banking Monthly, SG Bonds Weekly and SG Strategy 3Q20 (with stock picks)

Date: 06 July 2020

For more on Market Outlook

Phillip Research in 3 minutes: #25 – Prime US REIT; Initiation

For more videos on Phillip in 3 Mins

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





Disclaimer
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 揳s 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.