Daily Morning Note – 6 February 2020
WEEKLY MARKET OUTLOOK WEBINAR
PHILLIP SUMMARY
Stocks in Asia were primed for gains after data showed resilience in the U.S. economy and investors speculated the fallout from the coronavirus could be contained. U.S. equities earlier closed at an all-time high and Treasury yields advanced, and futures rose in Japan, Hong Kong and Australia, signaling equities in the Asia Pacific could post a third day of gains. Risk sentiment was lifted after a string of reports on possible vaccines for the virus, but the World Health Organization later said there are no proven therapeutics. The dollar rose, with data showing U.S. firms added more jobs than economists?forecasts in January. Crude rallied more than 3% on the prospect of OPEC+ output cuts.
Shares opened higher in Tokyo and Sydney and futures rose earlier in Hong Kong, signaling equities in the Asia Pacific could be on course for a third day of gains. Risk sentiment was lifted after a string of reports on possible vaccines for the virus, but the World Health Organization later said there are no proven therapeutics. On the data front: U.S. firms added more jobs than forecast in January and business activity firmed in the services sector.
BREAKING NEWS
Manulife US Real Estate Investment Trust’s (Manulife US Reit) distribution per unit (DPU) fell 5.9 per cent to 1.44 US cents for its fourth quarter ended Dec 31, 2019, from 1.53 cents a year ago. This was mainly due to an enlarged unit base following a placement and preferential offering to partially fund its US$198.8 million acquisition of 400 Capitol Mall, it said in a bourse filing on Wednesday.
The revenue-generating capacities of Singapore’s gaming sector and hospitality real estate investment trusts (Reits) will be the hardest hit by the novel coronavirus outbreak, according to Moody’s Investors Service. This is because the two industries generate the majority of their revenue from foreign visitors, Moody’s said in a report on Wednesday.
Ezra Holdings, which filed for bankruptcy protection under Chapter 11 in the US in 2017, on Wednesday said it has applied to be placed under judicial management. The troubled offshore and marine group filed an application in Singapore’s High Court on Feb 4.
Elite Commercial Reit’s bet to launch its initial public offering (IPO) amid market uncertainty may have paid off, as its units were oversubscribed under the public offer. When the offer closed on Tuesday, applications for about 47.85 million units were received for the roughly 5.73 million units offered to the public in Singapore, representing a subscription rate of 8.3 times.
First Ship Lease (FSL) Trust swung back into the black with a net profit of US$3.5 million for the fourth quarter, versus a US$18.5 million loss previously, on the back of improved charter rates. Revenue for FSL, which leases ocean-going vessels to the international shipping industry, was up 19.8 per cent to US$22.2 million for the quarter ended Dec 31, 2019.
Source: SGX Masnet, The Business Times, Bloomberg, Channel NewsAsia, Reuters, PSR
TECHNICAL PULSE
Yanlord Land Group Ltd
Recommended Action: Technical Buy
Yanlord (SGX: Z25) technicals suggest that the stock is headed for a rebound after the bearish fall was capped at the support level
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