Daily Morning Note – 7 September 2018
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YOUR PHILLIP SUMMARY
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.
RESEARCH REPORT
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
BREAKING NEWS
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
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