Daily Morning Note – 6 Sep 2019

WEEKLY MARKET OUTLOOK WEBINAR

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PHILLIP SUMMARY

Stocks in Asia looked set for gains after a strong session on Wall Street as a slew of data bolstered confidence in the American economy, and treasuries tumbled. Futures ticked higher in Japan, Hong Kong and Australia, while the S&P 500 advanced over 1% as trade hostilities appeared to ease between the U.S. and China. Strong private payrolls data and a better-than-expected reading on the services sector tamped down recession angst, while yields on Treasuries jumped amid a deluge of investment-grade corporate supply. News, too, that top Chinese and American officials agreed to restart talks aimed at ending the trade war is helping boost sentiment, and adds to a renewed appetite for risk assets that took hold earlier in the week. After the strong U.S. economic data, focus is now likely to shift to remarks from Federal Reserve Chairman Jerome Powell and the latest jobs report, both due Friday.



BREAKING NEWS

Discount brokerage company Charles Schwab Corp said on Thursday (Sept 5) it will close its Singapore office, less than two years after opening it.”Charles Schwab Singapore will cease to provide services and will close its office in Singapore. We will no longer open new accounts for prospective clients,” it said in a statement.

Voluntary conditional cash offer has been made for San Teh Ltd at $0.28 per share in cash. The offer is by the Kao family.

MAPLETREE Commercial Trust (MCT) will join the benchmark Straits Times Index (STI) with effect from Sept 23, replacing Hutchison Port Holdings Trust (HPHT).

EMS Energy Limited will be delisted from the Singapore Exchange with effect from 9 am on Oct 4, 2019, after it failed to submit a resumption proposal by the Exchange’s deadline and did not get approval for a deadline extension.

KEPPEL-KBS US Reit has changed its name to Keppel Pacific Oak US Reit, effective Sept 5.

A SUBSIDIARY of Fortress Minerals Limited, an iron ore concentrate producer, has been served a writ of summons dated Aug 21, 2019, from the Kuala Terengganu Session Court in Malaysia.

DBS Bank Ltd, acting through its Australia branch, has priced a three-year medium-term note issue, offering A$700 million (S$660.7 million) of senior unsecured floating rate notes due Sept 13, 2022.

CAPITALAND business unit The Ascott has opened lyf Funan Singapore – its first co-living property spanning around 121,000 square feet (sq ft) in gross floor area.The nine-storey lyf Funan property comprises 412 rooms across 279 apartments.

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

TECHNICAL PULSE

ComfortDelGro Corp Ltd

Recommended Action: Technical BUY

ComfortDelGro (SGX: C52) bullish trend is still healthy although there has been a bearish correction since July 2019. Based on the technicals, the continuation of the bullish trend will stage a strong upward move

Read more technical pulse

RESEARCH REPORTS

Clearbridge Health Limited – EBITDA-focused expansions

Recommendation: BUY (Maintained), Last Close Price: S$0.142

Target Price: S$0.26 (prev TP: S$0.28), Analyst: Phillip Research Team

– 1H19 revenue made up 23% of our full-year estimates.

– Healthcare system revenue surged 407% YoY due to higher revenue contribution from TMJ (acquired Apr’18) and IGM (acquired May’19).

– Medical centre revenue grew 26% YoY as the Group expanded its Philippines, Hong Kong and Malaysia businesses.

– Loss attributable to shareholders rose by S$1.3mn QoQ, dampened by a S$1.16mn rise in operating expenses, of which S$1.11mn is non-recurring.

– Maintain BUY with a lower TP of S$0.26 (prev TP: S$0.28). The lower target price is due to the increase in number of shares after the recent share placement.


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

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

Updates summarised in 3 minutes

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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





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