Friday, July 13, 2018

SG Market (13 Jul 18)

MARKET OVERVIEW
- Local stocks may track gains on Wall Street after Chinese and US officials signalled they were open to resuming trade talks as China appeared to tone down on hitting back at latest tariff threats.
- Technically, the immediate resistance for STI is seen at 3,280 with further upside capped at 3,340. Underlying support at 3,190-3,200 remains intact in the near-term.

MACRO WATCH
*Economy
- Advance estimates show the Singapore's 2Q18 GDP expanded by slower-than-expected 3.8% (est: +4.1%, 1Q18: +4.3%).
- Manufacturing remained the key driver but moderated to 8.6%, down from 9.7% in previous quarter, with growth led by electronics and biomedical clusters.
- Services also saw slower growth of 3.4% (1Q18: +4%), supported by finance & insurance, and wholesale & retail trade sectors.
- Construction contracted 4.4%, extending the 5.2% decline in the previous quarter, due mainly to continued weakness in private sector construction activities.

POSITIVE NEWS
*Acromec
- Secured another contract in the healthcare sector valued at $2.9m, which is expected to be completed by the 1QFY19.
- The contract is for the outfitting of an established private sector day-surgery centre and brings the number of contracts secured in the healthcare sector to three within the last months.
- Adding these contracts, the group's order book now stands at $21m and will contribute positively to the group's current FY.
- Trades at 2.4x P/B

*LHN
- Entered into its first management service agreement with Mother Construction, a local well-established property developer in Yangon with over 20 years in the industry.
- The project is to renovate and provide property management and leasing services to a serviced residence in Yangon.
- The serviced residence is expected to be operational in early Jan '19 and will be managed under the group's 85 SOHO serviced residence brand.
- Trades at 0.79x P/B

NEUTRAL NEWS
*SGX
- Welcomed Hong Kong internet securities brokerage startup Futu Securities as its 26th trading member.
- Backed by strategic shareholders Tencent, Matrix Partners China and Sequoia Capital, Futu allows Chinese individual investors to trade stocks across different markets.
- Trades at 20.8x forward P/E.

*Accordia Golf Trust
- Several days of torrential rainfall since 28 Jun had caused flash flooding and landslides in western Japan.
- Three of its golf courses (Hongo Country Club, Takehara Country Club and Fukuoka Pheasant) were closed due to public road closures against possibility of landslides and repair works.
- While several of its golf courses suffered damage, there was no material impact.
- Trades at 7.3% annualised yield and 0.68x P/B.

*Frasers Property
- Acquiring 75% stake in Phu An Dien Real Estate JSC (PAD) for VND799b ($47.3m).
- PAD will undertake the development of a residential-cum-commercial project on a mixed-use development plot at Linh Trung Ward, Ho Chi Minh City.
- Trades at 0.67x P/B.

*Liongold
- Entered into a loan agreement with CEO Tan Soo Khoon for an unsecured interest-free loan of up to $3.5m for a period of 24 months.
- Tan has a direct interest of 1.8m shares, representing 0.02% stake in the group
- The loan will mainly be used for general working capital.
- Trades at 0.53x P/B.

No comments:

Post a Comment