Daily Morning Note – 9 January 2019

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YOUR PHILLIP SUMMARY

Asian stocks looked set to follow a rally in U.S. shares as the possibility of progress in trade talks with China overwhelmed skepticism about the financial sector. The dollar rose, Treasuries slumped and crude surged toward $50 a barrel on expectations the market will be tightened by OPEC’s output cuts. All major indexes were higher, led by the small-cap Russell 2000 Index for a second day. The S&P 500 Index gained 1 percent on strength in transportation companies, carmakers and telephone stocks. Financials were only major industry group in the benchmark that didn’t rise. Boeing Co. helped lift large-caps with a strong fourth-quarter delivery report.

The World Bank cut its forecast for the global economy as slowing growth in trade and investment and rising interest rates sapped momentum, especially in emerging markets. Downside risks to the world economy have become more acute, including the threat of “disorderly” market movements and an escalation of trade disputes, the development lender said Tuesday in its semi-annual update to its global outlook. Debt vulnerabilities in emerging markets and developing countries have increased, it said. The Washington-based bank expects global growth of 2.9 percent this year, down from 3 percent in 2018 and a reduction of 0.1 percentage point from its forecast in June. The bank lowered its projection for growth in emerging markets by 0.5 point to 4.2 percent, and slightly downgraded its outlook for expansion in the euro area.



BREAKING NEWS

RICH Capital on Tuesday said it is planning to expand into the construction business with the proposed acquisition of two construction companies for up to S$43.98 million.

Chew’s Group said that it would seek shareholders’ approval to change its name and diversify into the property and financial investments services businesses.

Kimly Limited said it has received an advance repayment of S$1.4 million from the vendor in its aborted acquisition of Asian Story Corporation.

KrisEnergy said that oil production has restarted at the Wassana field in the G10/48 licence in the Gulf of Thailand following Tropical Storm Pabuk.

Swee Hong has won a new S$32.5 million contract from the Public Utilities Board (PUB) for the construction of link sewers for the DTSS phase 2 project at Old Choa Chu Kang Road/Jalan Bahar, a day after announcing another S$32.5 million deal also from PUB.

HUTCHISON Port Holdings Trust and four Hong Kong port operators have formed an alliance to manage Kwai Tsing container terminals’ berths.

Singtel has inked a three-year partnership with UNCDF to launch mobile wallet Singtel Dash in Singapore, for Myanmar nationals in the Republic to be able to send money home.

FIRST Ship Lease (FSL) Trust has filed a claim against Copenhagen-based charterer, Torm.

Source: SGX Masnet, Bloomberg, Reuters, The Business Times, Channel NewsAsia, Phillip Securities Research

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