Daily Morning Note – 6 September 2018
WEEKLY MARKET OUTLOOK WEBINAR
Register HERE for MONDAY’s 11.15am webinar.
Archived webinars available.
YOUR PHILLIP SUMMARY
Tech stocks slide lower across the board on Wednesday as executives from Facebook (-2.33%) and Twitter (-6.06%) defended before Congress their efforts to prevent election meddling. The selloff did not just affect social media giants but also chip makers, online streaming services, software developer and videogame makers. In total, 59 of the 73 companies in the S&P 500 technology sector posted losses on the day, an alarming retreat for the best-performing group in the broad index this year. The tech-heavy Nasdaq Composite fell -1.2% and recorded its biggest decline in three weeks, while the broader S&P 500 dropped just -0.3% and the Dow Jones Industrial Average gained 0.1%.
Elsewhere in the emerging markets, among the worst-hit stock market were in Saudi Arabia and Indonesia, where the benchmark index tumbled most in two years. The Jakarta composite index fell -4.7% on Wednesday, the worst day in five years.
Straits Times Index – Daily timeframe – Bearish
– The STI fell 1.68% on 05/09/18 leading to the STI breaking below the 3200 – 3189
– Thus with the current bearish break, expect the bearish momentum to sustain for
price to test the next support area at 3114 followed by 3030.
For more information and additional disclosures, refer to the link here.
The Nasdaq Composite saw its worst day since Aug. 15 as it fell by 1.2 percent to 7,995.17. The S&P 500 also slid by 0.3 percent to 2,888.60. The sell-off in the Nasdaq and S&P 500 was led by a fall in tech stocks, as Twitter CEO Jack Dorsey and Facebook COO Sheryl Sandberg both testified in front of Congress, addressing issues surrounding online election meddling and abuse on social platforms.
The United States and Canada have made progress in talks to revise the North American Free Trade Agreement, and officials from the two sides will work together into Wednesday and Thursday night for further discussion.
Indonesian shares were set to suffer their worst day in five years as the benchmark Jakarta Composite index slumped 4.7% by midafternoon on Wednesday, to 5628, on track for its worst day since August 2013, while most other Asian markets also declined. On the same note, Bank Indonesia Governor Perry Warjiyo has said the rupiah is away from its fundamental value, and called on corporations in the country to not stockpile dollars because it would negatively affect the market.
Singapore and Malaysia have agreed to suspend construction of the Kuala Lumpur-Singapore High Speed Rail project until May 31, 2020, with service on the advanced train line expected to begin by the start of 2031
Tesla’s stock and bond prices dropped on Wednesday after Chief Executive Elon Musk renewed an attack on a British caver whom he had previously insulted on social media and a day after Mercedes unveiled a challenge to the electric car maker.
According to people familiar with the matter, pricing practices within American Express Co’s foreign-exchange unit is being probed by the Federal Bureau of Investigation, which is focused on whether the foreign-exchange international payments department misrepresented pricing to clients in order to win their business.
Newly-launched cybersecurity firm Ensign InfoSecurity – a JV between Temasek and StarHub – will invest majorly in talent and research and development. For one, Ensign will buy “certain cybersecurity business-related assets” of StarHub’s for a S$120 million consideration.
United Overseas Bank has signed a MOU with Shanghai Pudong Development Bank to serve companies hoping to tap opportunities from the Belt and Road Initiative.
Telstra has revised its FY19 guidance based on the nbn co Corporate Plan 2019 released on 31 August 2018, as its nbn Corporate Plan 2019 included lower than previously estimated premises declared Ready for Service (RFS) and premises activated for FY19, which will be partly offset in FY19 by the natural hedge.
Joint venture partners Tawana Resources NL and Alliance Mineral Assets Limited have announced updates on its Bald Hill Lithium and Tantalum Mine project. Both parties are targeting production of 60,000 to 75,000 tonnes of lithium concentrate between July and December 2018.
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
|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 “as 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.|
|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.|