Daily Morning Note – 7 Oct 2020

PHILLIP SUMMARY

Asian equities looked set to follow U.S. stocks lower after President Donald Trump said he is ending stimulus talks until after next month’s election. Treasuries gained. Futures in Japan declined and the S&P 500 fell over 1%. Trump’s comment came just hours after Federal Reserve Chairman Jerome Powell renewed his warning that the economy will stumble without additional support. Treasury yields fell and the dollar jumped against most of its major peers. Nasdaq futures slipped after a House panel proposed a series of far-reaching antitrust reforms to curb the power of U.S. technology giants including Amazon.com and Alphabet Inc. Australian shares dipped after Tuesday’s budget announcement while the country’s 3-year bond yield dropped to an all-time low on plans to issue less debt than estimated.

BREAKING NEWS

SPH Reit on Tuesday posted a distribution per unit (DPU) of 1.04 Singapore cent for the half-year period ended Aug 31, 2020, compared to 2.85 cents paid out in the corresponding period a year ago. This was on the back of a 79.4 per cent drop in income available for distribution to S$14.9 million, from S$72.2 million a year ago; the Reit manager decided to defer the payment of some S$14.5 million, as allowed under Covid-19 relief measures announced by the Inland Revenue Authority of Singapore. This was “for prudence in financial management”, it said.

AGRI-FOOD giant Olam International has upsized its flagship debt facility by US$300 million to US$1.98 billion, and will use it to refinance existing loans, said the group in a statement on Tuesday. Four new banks have joined Olam’s multi-tranche revolving credit facility that was first secured on Sept 10, 2020. Bank of Baroda has come on as a senior mandated lead arranger; Bank of China and Unicredit Bank are mandated lead arrangers, and Westpac Banking Corporation as a lead arranger, taking the total banking group to 25 banks.

WEE Hur Holdings‘ purpose-built student accommodation (PBSA) property at 124 Waymouth Street in Adelaide will be the first to be launched under its new Y Suites brand. The mainboard-listed group’s wholly owned subsidiary, Wee Hur Hospitality, on Tuesday announced Y Suites as the brand for its PBSA portfolio in Australia.

SP PowerAssets has sent a second letter of demand to waste management firm Sen Yue Holdings‘ wholly-owned subsidiary SMC Industrial (SMCI). This time, the SP Group subsidiary is seeking the payment of an aggregate balance outstanding sum of close to S$7.5 million and any accrued interest for late payment of this amount, Sen Yue said in an exchange filing on Tuesday.

ST Engineering’s corporate venture capital (VC) unit, ST Engineering Ventures, has made an undisclosed investment into CloudSphere, a cloud management and governance provider headquartered in California and Dublin, Ireland. ST Engineering Ventures joined growth equity firm Atlantic Bridge in the closing of a strategic investment round for CloudSphere, ST Engineering and CloudSphere said in a joint press statement on Tuesday.

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

TECHNICAL REPORTS

Sasseur REIT

Analyst: Chua Wei Ren

Recommended Action: Technical BUY

Sasseur REIT (SGX: CRPU) technical indicate upside based on the wave theory. Current wave analysis indicate the minor wave of wave 1-5 has been complete and the next phase is relative unknown as whether its wave (1) or (A) until $0.920 is broken. However, based on other technical price action, we are certain of another upside.

>> Read more technical reports

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