Daily Morning Note – 6 July 2018
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Singapore Coal Monthly – Demand from China still robust
Recommendation: OVERWEIGHT, Analyst: Chen Guangzhi
– China imports more coal
– Demand for coal outstripping supply in China
– Indonesia coal market is expected to remain upbeat in 2H18
SATS Ltd – Daily timeframe – Bullish
– The subsequent bullish follow-through succeeded in breaking above the
immediate downtrend line and 20 day moving average on 05/07/18 suggests
a reversal back into the uptrend.
– With the current bullish breakout and oversold RSI mean reversion, expect
price to head higher next to test the 5.30 resistance area followed by 5.39.
For more information and additional disclosures, refer to the link here.
Tech rally leads stocks higher; trade and Fed minutes also in focus. The Dow Jones Industrial Average DJIA, +0.75% gained 181.92 points, or 0.8%, to 24,356.74. The S&P 500 SPX, +0.86% added 23.39 points to 2,736.61, a gain of 0.9%. The Nasdaq Composite Index COMP, +1.12% rose 83.75 points, or 1.2%, to 7,586.43.
US private payrolls miss expectations; weekly jobless claims up. The ADP National Employment Report showed on Thursday private employers hired 177,000 workers in June, less than market expectations for a 190,000 gain. Private payrolls increased by 189,000 jobs in May.
Oil Slips as U.S. Crude Stockpiles Show Surprise Build. U.S. crude futures fell $1.20 to settle at $72.94 a barrel, retreating from Tuesday’s 3-1/2-year high of over $75. Brent crude futures lost 85 cents to settle at $77.39 a barrel. U.S. crude stockpiles rose 1.3 million barrels last week, according to U.S. Energy Information Administration data. Analysts had expected a 3.5 million-barrel draw.
Government raises ABSD, tightens LTV limits to cool Singapore property market. The current ABSD rates for Singapore citizens and Singapore permanent residents (SPR) purchasing their first residential property will remain at zero and 5 per cent respectively. But the ABSD rates for all other individuals will be raised by five percentage points and 10 percentage points for entities. An additional ABSD of 5 per cent will also be introduced for developers buying residential properties for housing development. For LTV limits, they will be tightened by five percentage points for all housing loans granted by financial institutions.
Sembcorp Industries to redeem S$200m of 5% perpetual securities at par.
Magnus Energy to place 2.53b new shares to raise S$2.28m. Magnus Energy’s rationale is to strengthen its financial and working capital position. The company intends to use the net proceeds for general working capital for corporate expenditures, and as funds for a microalgae oil cultivation project.
Xiaomi call warrants to start trading on SGX on July 9. They will have a strike price of HK$20, $24 and $30 respectively, and the same expiry date of Feb 4, 2019.
Source: SGX Masnet, Bloomberg, Reuters, The Business Times, Channel NewsAsia, Phillip Securities Research
Clients of Phillip Securities can keep updated with Country Strategy and Singapore Sector Reports by logging into: www.poems.com.sg > STOCKS > Research
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