Daily Morning Note – 6 March 2019
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YOUR PHILLIP SUMMARY
U.S. stocks edged lower Tuesday as investors struggled to find inspiration after a torrid start to the year. The dollar rallied for a fifth day. The S&P 500 Index fell 0.1 percent. Equities opened lower amid a lack of progress on the U.S.-China trade deal before briefly erasing losses on home-sales and service-industries data that beat estimates. General Electric Co.tumbled after its chief executive officer forecast negative industrial free cash flow this year. Target Corp. and Kohl’s Corp. buoyed consumer shares on the back of solid earnings. Investors are hungry for concrete details about progress on a U.S.-China trade deal before they push a global equities rally further, leaving the S&P 500 Index seemingly stuck below the key 2,800 level. Trade and slowing growth are on the agenda as China’s most powerful officials gather in Beijing for the National People’s Congress, while investors will get the latest read on the U.S. economy with the monthly jobs report Friday.
BREAKING NEWS
Credit rating agency Moody’s has downgraded its outlook on Singtel to “negative”, from “stable”, on glum expectations for the telco’s underlying earnings before interest, tax, depreciation and amortisation (Ebitda) in the next one and a half years. Besides concern over price competition in Singapore and Australia, the ratings revision on Tuesday also came on the back of the expectation that Singtel will partially or fully subscribe to its portion of a multibillion-dollar rights issue at debt-hit Indian associate Bharti Airtel.
SUTL Enterprise has secured a management contract for the day-to-day operations of a proposed integrated marina in China’s Guangdong province, the company said in a filing on Tuesday. The company’s wholly owned subsidiary, ONE15 Management and Technical Services, has entered into an agreement on Dec 27, 2018 with the project’s master developer Sunsea Yacht Club (Zhongshan), to manage, operate and maintain the marina and its facilities.
Hyflux subsidiary Tuaspring Pte Ltd has been slapped with a default notice from PUB, for failing to keep its desalination plant “reliably operational” as required under the Water Purchase Agreement. The national water agency said in a statement on Tuesday: “TPL has been unable to fulfil various contractual obligations under the agreement, in particular, by failing to keep the plant reliably operational as required. In addition, TPL has not been able to produce financial evidence to demonstrate its ability to keep the plant running for the next six months.”
Source: SGX Masnet, The Business Times, Bloomberg, Channel NewsAsia, Reuters, PSR
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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