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.


TECHNICAL PULSE

Straits Times Index – Daily timeframe – Bearish

– The STI fell 1.68% on 05/09/18 leading to the STI breaking below the 3200 – 3189
support area.

– 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.

BREAKING NEWS

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

Read the research report(s), available through the link(s) above, for complete information including important disclosures

Important Information

Disclaimer
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.
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

IMPORTANT INFORMATION

This material is provided by Phillip Capital Management (S) Ltd (“PCM”) for general information only and does not constitute a recommendation, an offer to sell, or a solicitation of any offer to invest in any of the exchange-traded fund (“ETF”) or the unit trust (“Products”) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. You should read the Prospectus and the accompanying Product Highlights Sheet (“PHS”) for key features, key risks and other important information of the Products and obtain advice from a financial adviser (“FA“) pursuant to a separate engagement before making a commitment to invest in the Products. In the event that you choose not to obtain advice from a FA, you should assess whether the Products are suitable for you before proceeding to invest. A copy of the Prospectus and PHS are available from PCM, any of its Participating Dealers (“PDs“) for the ETF, or any of its authorised distributors for the unit trust managed by PCM.  

An ETF is not like a typical unit trust as the units of the ETF (the “Units“) are to be listed and traded like any share on the Singapore Exchange Securities Trading Limited (“SGX-ST”). Listing on the SGX-ST does not guarantee a liquid market for the Units which may be traded at prices above or below its NAV or may be suspended or delisted. Investors may buy or sell the Units on SGX-ST when it is listed. Investors cannot create or redeem Units directly with PCM and have no rights to request PCM to redeem or purchase their Units. Creation and redemption of Units are through PDs if investors are clients of the PDs, who have no obligation to agree to create or redeem Units on behalf of any investor and may impose terms and conditions in connection with such creation or redemption orders. Please refer to the Prospectus of the ETF for more details.  

Investments are subject to investment risks including the possible loss of the principal amount invested. The purchase of a unit in a fund is not the same as placing your money on deposit with a bank or deposit-taking company. There is no guarantee as to the amount of capital invested or return received. The value of the units and the income accruing to the units may fall or rise. Past performance is not necessarily indicative of the future or likely performance of the Products. There can be no assurance that investment objectives will be achieved.  

Where applicable, fund(s) may invest in financial derivatives and/or participate in securities lending and repurchase transactions for the purpose of hedging and/or efficient portfolio management, subject to the relevant regulatory requirements. PCM reserves the discretion to determine if currency exposure should be hedged actively, passively or not at all, in the best interest of the Products.  

The regular dividend distributions, out of either income and/or capital, are not guaranteed and subject to PCM’s discretion. Past payout yields and payments do not represent future payout yields and payments. Such dividend distributions will reduce the available capital for reinvestment and may result in an immediate decrease in the net asset value (“NAV”) of the Products. Please refer to <www.phillipfunds.com> for more information in relation to the dividend distributions.  

The information provided herein may be obtained or compiled from public and/or third party sources that PCM has no reason to believe are unreliable. Any opinion or view herein is an expression of belief of the individual author or the indicated source (as applicable) only. PCM makes no representation or warranty that such information is accurate, complete, verified or should be relied upon as such. The information does not constitute, and should not be used as a substitute for tax, legal or investment advice.  

The information herein are not for any person in any jurisdiction or country where such distribution or availability for use would contravene any applicable law or regulation or would subject PCM to any registration or licensing requirement in such jurisdiction or country. The Products is not offered to U.S. Persons. PhillipCapital Group of Companies, including PCM, their affiliates and/or their officers, directors and/or employees may own or have positions in the Products. Any member of the PhillipCapital Group of Companies may have acted upon or used the information, analyses and opinions herein before they have been published. 

This advertisement has not been reviewed by the Monetary Authority of Singapore.  

 

Phillip Capital Management (S) Ltd (Co. Reg. No. 199905233W)  
250 North Bridge Road #06-00, Raffles City Tower ,Singapore 179101 
Tel: (65) 6230 8133 Fax: (65) 65383066 www.phillipfunds.com