Daily Morning Note – 8 Aug 2019

WEEKLY MARKET OUTLOOK WEBINAR

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PHILLIP SUMMARY

U.S. stocks on Wednesday mustered modest gains following a dramatic turnabout, with all three key equity benchmarks recovering from losses of at least 1% which were partly driven by signs that global economic growth was slowing as the U.S. – China trade war intensifies. The Dow Jones Industrial Average finished 22.45 points lower, or less than 0.1%, to 26,007.07, after sinking 2.3% or 589 points, at the session low. The S&P 500 index finished 2.21 points, or 0.1%, higher at 2,883.98, after skidding nearly 2%, while the Nasdaq Composite Index gained 29.56 points, or 0.4% to 7,862.83, reversing an intraday 130-point slide in the technology-heavy index. Stocks initially sank as U.S. Treasury and European government bonds yields plumbed fresh lows. The 10-year Treasury fell below 1.70%, falling to an intraday nadir at 1.60%, around the lowest since late 2016, but were backing up in late-session trade Wednesday. Meanwhile, comparable German bonds hit a record low at negative 0.59%.


BREAKING NEWS

The Japanese government is set to allow exports of some semiconductor manufacturing materials to South Korea, the first such approval since Tokyo tightened export controls on the products in July, Nikkei reported on Wednesday.

[Hong Kong] Cathay Pacific Airways Ltd and the owner of Hong Kong’s luxury Peninsula hotel became the latest companies to highlight the impact of recent protests on their business, as an escalating cycle of violence clouds the outlook for the city.

Property developer SingHaiyi Group’s 99-year leasehold Parc Clematis will open for booking on Aug 31. The public preview will be held on Saturday, Aug 17.

Singapore O&G, a specialist healthcare provider for women and children, on Wednesday posted a net profit of S$2.7 million for the second quarter, down 27 per cent from the same period a year earlier.

Singapore Medical Group on Wednesday posted a net profit of S$3.5 million in the second quarter, up 3.5 per cent from the same period a year earlier.

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

TECHNICAL PULSE

United Overseas Bank Ltd

Recommended Action: Technical BUY

United Overseas Bank’s resumption of its bullish momentum will be sooner than expected.

Read more technical pulse

RESEARCH REPORTS

EC World REIT – Operationally stable, but with FX woes

Recommendation: BUY (Maintained)

Target Price: S$0.87 (unchanged)

APAC Realty Ltd – Toning down our expectations

Recommendation: BUY (Maintained)

Target Price: S$0.58 (prev TP: S$0.65)

China Sunsine Chemical Holdings Ltd – Potential growth from pipeline projects

Recommendation: BUY (Maintained)

Target Price: S$1.43 (unchanged)

Webinar Of The Week

Market Outlook: : (PSR) Raffles Medical Group, Singapore Exchange Limited, DBS Group Holdings, Oversea-Chinese Banking Corp Limited, United Overseas Bank Limited, Ascendas REIT, Ascott Residence Trust, Sheng Shiong Group & Phillip Singapore Weekly

Date: 05 August 2019

For more on Market Outlook

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





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