Daily Morning Note – 5 Sep 2019


Register HERE for MONDAY’s 11.15am webinar.

Archived webinars available.


Stocks in Asia looked primed to start Thursday on the front foot, after a broad rally in global equities amid an improvement in investor sentiment. The dollar dropped the most since June. Futures signaled gains for shares in Japan and Australia, and Hong Kong contracts pointed lower after a 4% surge Wednesday when Carrie Lam formally withdrew legislation to allow extraditions to China. U.S. stocks closed higher and Treasuries slipped. The pound surged as Britain’s parliament rejected Prime Minister Boris Johnson’s demand for an early election and took further steps to block an imminent no-deal Brexit. Meanwhile, China signaled that a reduction in the amount of funds banks have to hold in reserve is on the way. The calls come as more and more economists lower their GDP forecasts for 2020 to below 6%. Elsewhere, oil climbed above $56 a barrel.


Frasers Centrepoint Trust announced that it will be included in the FTSE EPRA/NAREIT Global Real Estate Index Series (Global Developed Index) from 23 September 2019. The index series is designed to track the performance of listed real estate companies and REITs worldwide and is seen as the leading benchmark for listed real estate investments.

SINGAPORE: A committee that reviews electoral boundaries ahead of a General Election (GE) has been set up, said the Elections Department on Wednesday (Sep 4). The formation of the Electoral Boundaries Review Committee (EBRC) and its subsequent report are key processes that need to be completed before a GE. It is appointed by the Prime Minister, who sets its guidelines or terms of reference.

CHINESE shipbuilder Yangzijiang Shipbuilding inked new order contracts for five vessels, including three 82,000DWT bulk carriers and two 325,000DWT bulk carriers. One of the orders for the 82,000DWT bulk carriers was placed by Kambara Kisen of Japan, which has its own shipbuilding company under Tsuneishi Holdings Corporation.

Shoppers at some NTUC FairPrice outlets will soon have to start paying for plastic bags. The supermarket giant will start charging 10 Singapore cents and 20 cents for plastic bag use at seven outlets in a month-long trial, starting from Sept 16.

Transport giant ComfortDelGro has rolled out an on-demand bus service, just weeks after the Land Transport Authority (LTA) shelved plans for such a scheme. The listed bus and rail operator said on Wednesday that its ComfortConnect service has been available to residents in Tanjong Rhu and Meyer Road since Aug 15.

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


Overseas-Chinese Banking Corp Ltd

Recommended Action: Technical BUY

Although OCBC (SGX: 039) is still in an overall bearish downtrend. However, we believe OCBC may be heading for a slight upward corrective move.

Read more technical pulse


Singapore Banking Monthly – Impact of rate cut kicking in

Recommendation: Overweight (Maintained)

Analyst: Tin Min Ying

– Singapore’s loans growth stable at 2.0% YoY. Consumer loans (-0.9% YoY) contracted for the fourth consecutive month, dragged by weakness in housing loans.

– Domestic deposits rose 8.0% YoY, held up by sustained the strength in fixed deposits which surged 23.1% YoY. CASA contracted 0.9% YoY while fixed deposits (FD) surged to new decade-high growth rate of 23.1% YoY.

– 3M SIBOR finally capitulated and fell 12 bps to 1.879%, while 3M SOR dipped 3 bps to 1.724%.

– In August, SDAV and derivatives volumes for SGX was up 3.9% YoY (QTD -1.3%) and around 14.1% YoY (QTD 8.2%) respectively.

– Maintain the Singapore Banking Sector at Overweight. The banks are offering dividend yield of 4% to 5%, well capitalised and enjoying 5-9% earnings growth.

Bilibili Inc. – Rapid user expansion lays fast revenue growth

Analyst: Jieyuan Zheng, Chua Wei Ren

– Bilibili reported 2Q19 net revenue of RMB 1537.7mn, up 50% YoY, of which live broadcasting and VAS increased 175% YoY to RMB 326mn.

– 2Q19 MAUs reached 110.4 million; mobile MAUs reached 96.2 million, representing an increase of 30% YoY and 35% YoY, respectively.

– Average MPUs reached 6.3 million, up 111% YoY.

– We are positive on Bilibili due to positive industry outlook, the ever-growing supply of PUGC, highly engaged and sticky communities, and improving monetisation ability. Bilibili currently trades at P/B of 4.6.

Read more research reports

Webinar Of The Week

Market Outlook: : Market Outlook: (PSR) Overseas-Chinese Banking Corp Limited (OCBC), Phillip Singapore Weekly & Technical Analysis

Date: 03 September 2019

For more on Market Outlook

Phillip Research in 3 minutes: #13 – Real Estate Agencies Sector

Updates summarised in 3 minutes

For more videos on Phillip in 3 Mins

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 Important Information

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.
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.


Contact us to Open an Account

Need Assistance? Share your Details and we’ll get back to you