Daily Morning Note – 6 February 2020



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.


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


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

Read more technical reports

Webinar Of The Week

Market Outlook: (PSR) Singapore Weekly & Technicals

Date: 20 January 2020

For more on Market Outlook

Phillip Research in 3 minutes: #16- JEP Holdings Ltd

Updates summarised in 3 minutes

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

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.


Contact us to Open an Account

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