Daily Morning Note – 5 March 2019

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YOUR PHILLIP SUMMARY

U.S. stocks drop the most in a month, while evidence mounts that the trade war with China is taking its toll on the American economy. Here are some of the things people in markets are talking about.

Asian stocks are set to track U.S. shares lower as investors look for trade-deal details. The dollar strengthened and Treasury yields slipped. Futures pointed to equities opening weaker across the region after the S&P 500 Index declined the most in a month, though the benchmark did pare the worst of its losses late in the session. Chinese assets will be in the spotlight after a report China is planning to cut the value-added tax rate that covers the manufacturing sector to support growth. The yuan held gains on reports of an imminent trade deal.



RESEARCH REPORT

China Aviation (Singapore) Oil – Mixed blessing

Recommendation: BUY, Last Closing Price: S$1.30

Target Price: S$1.67, Analyst: Chen Guangzhi

– Supply and trading margins improved. Total supply and trading volume shrank.

– Pudong underperformed due to lower refuelling volumes and FX losses.

– The new management will focus on the bottom-line growth.


BREAKING NEWS

As at the close of Exeo Global’s buyout offer for Catalist-listed technology firm DeClout on Monday, the offeror had shares and valid acceptances representing about 95.04 per cent of the total issued shares, and about 94.64 per cent of the maximum potential issued shares in the company.

DBS Bank, announcing the launch of its locally incorporated subsidiary, DBS Bank India on Monday, said that its wholly-owned Indian unit plans to establish more than 100 customer touchpoints – a mix of branches and kiosks – across 25 cities in the next 12 to 18 months.

Frasers Logistics & Industrial Trust on Monday said that the real estate investment trust will be included in the FTSE EPRA/NAREIT Global Real Estate Index Series (Global Developed Index) from March 19, 2019. Robert Wallace, CEO of the manager, said the entry into the “leading benchmark index for institutional real-estate investors” is a “major milestone”. He added that this will further raise FLT’s trading liquidity and visibility to global investors.

Gold prices edged higher on Monday, after falling below the critical US$1,300 level to their lowest since Jan 25 in the previous session, as the US dollar softened on prospects of a trade deal between China and the United States.

Oil prices rose about 1 per cent on Monday as the United States and China appeared closer to ending a trade war that has slowed global economic growth while Opec ally Russia said it would ramp up its crude supply cuts.

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

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