Daily Morning Note – 7 July 2020

PHILLIP SUMMARY

Asian stocks looked set for a mixed start Tuesday after strong gains Monday that were carried into the U.S. The dollar fell for a fifth day. Futures edged lower in Japan and pointed to a modest rise in Hong Kong and Australia. S&P 500 futures dipped after the benchmark rallied for a fifth session, with tech gains pushing the Nasdaq Composite to a record high.

BREAKING NEWS

CapitaLand on Monday said it expects the group’s total profit after tax and minority interests (PATMI) for the six months ended June 30, 2020 to be “materially and adversely” impacted, based on preliminary estimates.

Offshore support-vessel owner and operator Vallianz Holdings said it will exercise its rights to defer a distribution to perpetual securities holders that was due on Monday. Vallianz had issued US$22.5 million worth of senior perpetual securities, carrying a 4 per cent coupon, as part of its S$500 million multi-currency debt-issuance programme.

Agri-food company Japfa on Friday closed the sale of a 25 per cent stake in AustAsia Investment Holdings, which operates the group’s dairy farming business in China, to Japan’s Meiji. As part of the agreement, Japfa will continue to manage the farming operations in China, which will supply raw milk to Meiji under a five-year rolling contract, renewable annually.

Chinese property developer Yanlord Land Group recorded 29.8 billion yuan (S$6 billion) in total contracted pre-sales from residential units, commercial units and car parks in the first half of the year, a 65 per cent increase from the previous year.

Share of Hi-P International rose on Monday, prompting a query from the Singapore Exchange (SGX) about the “unusual price movements”. The mainboard-listed stock had advanced S$0.18 or 16.8 per cent to trade at S$1.25 just after 3pm, with 12.2 million shares changing hands.

Mainboard-listed mining company Golden Energy and Resources (Gear) has completed an on-market sale to dispose of a 0.95 per cent interest in Australia-listed gold miner Westgold Resources for A$9 million (S$8.7 million) in cash.

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

TECHNICAL PULSE

Technical Pulse: Wilmar International Ltd

Analyst: Chua Wei Ren

Recommended Action: Technical BUY

Wilmar International Ltd (SGX: F34) robust rebound since mid-March saw price breaking above S$3.80, which invalidated the downtrend beginning in January 2020. Based on the technicals, we are likely to see prices breaking the immediate resistance zone at S$4.22-S$4.29.

>> Read more technical reports

RESEARCH VIDEOS

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Market Outlook: Market Outlook: SG Banking Monthly, SG Bonds Weekly and SG Strategy 3Q20 (with stock picks)

Date: 06 July 2020

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Phillip Research in 3 minutes: #23- Yoma Strategic Holdings; Initiation

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