Daily Morning Note – 6 June 2019
WEEKLY MARKET OUTLOOK WEBINAR
Register HERE for MONDAY’s 11.15am webinar.
Archived webinars available.
YOUR PHILLIP SUMMARY
Asian equity futures may open mixed, with Nikkei futures slightly up, while the Hang Seng may open down. U.S. stocks climbed on optimism Mexican tariffswill be avoided.
Treasuries rose as a weak private-jobs report bolstered bets the Fed will ease, outweighing solid service-industries figures. The spread between 2- and 10-year yields reached the widest since November.
The dollar rose against all G-10 currencies except the kiwi. Oil entered a bear market after U.S. supplies jumped the most in almost 30 years.
United Overseas Bank Ltd
Current Sentiment: Technical Buy
Singapore Banking Monthly – Slow but sustainable growth
Recommendation: Overweight (Maintained), Analyst: Tin Min Ying
– Singapore loan growth slowed further to 1.4% YoY. Consumer loans contracted for the first time in decades, hammered by persistent weakness in housing loans.
– Domestic deposits rose 7.1% YoY, held up by fixed deposit growth of 21.6% YoY, the fastest in almost twelve years. CASA deposits continues to contract at -1.1% YoY.
– 3-month SIBOR and SOR rose 6.2bps and 8.0bps to 2.007% and 2.052% respectively.
– Maintain the Singapore Banking Sector at Overweight. While the trade war affects investor sentiments in the near term, we believe the banks’ fundamentals remain intact to withstand risks and deliver growth on a sustained basis.
The European Central Bank will try to give an ailing euro zone economy a boost on Thursday and may even set the stage for more action later this year as an escalating global trade war saps growth and unravels the benefits of years of ECB stimulus.
Oil prices fell on Wednesday, with West Texas Intermediate crude futures (WTI) dropping to its lowest since January after US crude inventories unexpectedly surged, adding to concerns about slowing global growth.
Asian markets rose on Wednesday, tracking rallies on Wall Street after the US Federal Reserve chief indicated greater openness to lowering interest rates and acknowledged the impact of trade tensions on growth.
Wall Street stocks rose for a second straight session on Wednesday, with solid data on the US services sector offsetting a weak private sector hiring report.
Tokyo stocks opened higher on Wednesday extending rallies on Wall Street, as the US Federal Reserve chief signalled a greater openness to cutting interest rates.
CHALLENGER Technologies said on Tuesday night that the Singapore Exchange has no objection to its delisting, subject to compliance with listing rules.
SIX more mainboard-listed companies have announced their addition to the Singapore Exchange’s watch-list with effect from June 6, due to not meeting minimum trading price (MTP) requirements.
European stock markets crept higher on Wednesday as defensive shares gained ground, but rising tensions between Italy and the European Commission over the country’s debt dampened sentiment.
Source: SGX Masnet, The Business Times, Bloomberg, Channel NewsAsia, Reuters, PSR
Clients of Phillip Securities can keep updated with Country Strategy and Singapore Sector Reports by logging into: www.poems.com.sg > STOCKS > Research
|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.|
|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.|