Daily Morning Note – 9 July 2018
WEEKLY MARKET OUTLOOK WEBINAR
Register HERE for MONDAY’s 11.15am webinar.
Archived webinars available.
RESEARCH REPORT
Technical Analysis: S&P 500 – Monthly recession tracker – June update (risk-on)
Analyst: Jeremy Ng
– All the indicators in the Recession Tracker remain well within their thresholds
signalling for further upside in the general equity market
– 2s10s spread continued to flatten to a low of 0.285% suggests the earliest
time for the yield curve to invert is December 2018
– 200-day moving average still holding up strong in the Dow Jones Industrial
Average suggests the immediate uptrend is still intact
– Expect the DJIA, S&P 500 and Nasdaq 100 index to retest their respective
record highs
Singapore Property Sector – A surprise fresh set of cooling measures
Recommendation: Overweight (Maintained), Analyst: Tan Dehong
– New cooling measures: Higher Additional Buyer’s Stamp Duty and LTV
tightening.
– Negative short-term impact on transaction volumes and prices but makes for
a more sustainable upcycle with more gradual price increases.
– Property price increases have been backed by income growth which has
outpaced home price increases.
– We maintain our OVERWEIGHT view on Singapore Property Sector even as we
reduce assumed selling prices for selected projects and increase sector RNAVdiscount.
TECHNICAL PULSE
Singtel Ltd – Weekly timeframe – Bullish
– A Bullish Outside Bar was formed on the week ended 06/07/18 with
increasing volume suggests a reversal higher next.
– With the bullish price action rejection off the 3.00 psychological round
number and RSI bullish divergence, expect price to rebound higher next to
test the 3.38 resistance area followed by 3.56.
For more information and additional disclosures, refer to the link here.
BREAKING NEWS
Sembcorp Marine has revised the purchase price for acqusition of Sevan marine intellectual property rights from US$28 million to US$39 million.
Samurai 2K has updated that the Company’s wholly-owned subsidiary, Orientus Industry Sdn. Bhd.’s pending Intellectual Property Rights have been duly granted and registered.
Hyflux Ltd has been granted a six-month extension for announcing the unaudited financial statements for the second quarter ended June 30, which was originally supposed to be announced by Aug 14 this year. It will also have three more months to announce its third quarter financials, which were meant to be released no later than Nov 14.
US Nonfarm payrolls increased by 213,000 jobs last month, exceeding expectations of 195,000. Unemployment rate rose from an 18-year low to 4% and average hourly earnings rose 0.2%.
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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