Daily Morning Note – 7 September 2018


Register HERE for MONDAY’s 11.15am webinar.

Archived webinars available.


Weakness in tech shares hurt the S&P 500 for the third straight trading session Thursday, with worries about regulation and trade continuing to hang over the market’s best-performing sector. Investors are waiting to see if the Trump administration will move ahead with tariffs on an additional $200 billion of Chinese goods. The tech-heavy Nasdaq Composite dropped -0.9%, while the S&P 500 fell -0.4%. The Dow Jones Industrial Average inched up 21 points (0.1%) to 25,996. Major indexes had fallen in three of the previous four trading sessions entering Thursday, though they remain near record high levels. keep an eye out on the jobs report today for further clues on the health of the US economy.


Singapore Coal Monthly – Surge in imported coal by China

Recommendation: OVERWEIGHT, Analyst: Chen Guangzhi

– Three-year plan for cleaner air released in China

– Coal DMO and domestic remained status quo in Indonesia

– More seaborne coal to offset the domestic shortfall

– Positive coal price outlook in 2H18


The S&P 500 declined 0.4 percent to close at 2,878.05 as tech fell 1 percent. Facebook shares also declined 2.8 percent on Thursday, while Alphabet dropped 1.3 percent. The Dow Jones Industrial Average eked out a slight gain, however, rising 20.88 points to 25,995.87.

Bitcoin has lost roughly $1,000 of its value in the past 48 hours, following a report that Goldman Sachs was dropping its plans for opening a trading desk for cryptocurrencies. The price of ether fell 13 percent, XRP was down by 6 percent, and bitcoin cash dropped by 12 percent over a 24-hour period.

Dairy Farm will join the benchmark Straits Times Index with effect from Sept 24, replacing telco StarHub.

Apple Inc plans to create an online tool for police to formally request data about its users and to assemble a team to train police about what data can or cannot be obtained from the iPhone maker, according to a company letter seen by Reuters.

Facebook has removed a feature that allowed users to translate Burmese posts and comments after a Reuters report showed the tool was producing bizarre results. In Singapore, Facebook will build a S$1.4 billion data centre in Singapore, its first such facility in Asia and its 15th in the world, to be located in Tanjong Kling in Jurong. The centre is targeted to start operations in 2022, after which construction will continue for a few years.

The prominent short-seller Andrew Left has sued Tesla Inc and its Chief Executive Elon Musk, saying Musk fraudulently engineered his since-abandoned plan to take Tesla private to “burn” investors hoping the electric car company’s stock price would fall.

DBS Group Holdings has set its final price guidance for its Singapore-dollar perpetual NC7 AT1 issue at 3.98per cent, down from the initial price guidance of 4.375 per cent, following sizzling demand.The deal has garnered orders of over S$4 billion, said a source.

Ascendas Reit plans to raise gross proceeds of at least S$450 million through a private placement of 178 million new units at between S$2.528 and S$2.606 per unit, which represents a discount of between 3.65 to 6.53per cent of the VWAP of S$2.7047 per unit traded on Thursday.

SembMarine has bagged a contract from Greek shipping firm Maran Tankers to install marine scrubbers and ballast-water management systems on 13 vessels. This will be done between the third quarter of 2018 and the fourth quarter of 2019.

Keppel Corp’s infrastructure arm, Keppel DHCS, has clincheda S$275,000 contract for the initial design phase of a new district cooling system plant in the Jurong Innovation District. The contract, awarded by JTC Corp, could lead to a contract for the final phase of the project for a 30-year term to build, own and operate the plant if JTC approves it.

Yuuzoo Networks Group, formerly known as YuuZoo Corp, said on Thursday that it had instructed the management of YuuLog France to initiate judicial recovery proceedings in the French courts.

Technics Offshore Engineering and Technics Oil & Gas have discontinued their proceedings against Soilbuild Business Space Reit’s trustee DBS Trustee Limited.

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

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


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