Page | 1 MCI (P) 094/09/2017 Ref. No.: SGMN2018_0003 Singapore Morning Note 4 January 2018 Research Official Website: www.stocksbnb.com MARKET WATCH Singapore Indices Level 1D D 1D % FTSE ST Straits Time 3,464.3 34.0 1.0 FTSE ST Financial 1,035.3 12.2 1.2 FTSE ST Real Estate 872.8 3.6 0.4 FTSE ST Industrials 787.3 4.6 0.6 FTSE ST Consumer Service 762.3 4.3 0.6 FTSE ST Telecommunicate 917.9 (2.1) (0.2) FTSE ST Oil & Gas 404.4 5.9 1.5 FTSE ST Consumer Good 503.6 1.4 0.3 FTSE ST Utilities 372.7 3.5 1.0 FTSE ST Healthcare 1,220.6 (3.5) (0.3) FTSE ST Technology 243.8 (1.2) (0.5) FTSE ST Basic Material 84.2 14.6 21.0 FTSE ST Mid-Cap 783.2 5.1 0.7 FTSE ST Catalist 475.9 0.4 0.1 All stocks Up: 184 Unchanged: 321 Down: 131 Total Volume (mn shares) 2,473.5 984.7 66.1 Total Value (S$ mn) 1,262.5 349.5 38.3 Top gainers (mktcap >S$100m) S$ D % Blumont Group 0.004 0.002 100.0 Midas Holdings 0.159 0.048 43.2 LHN 0.315 0.070 28.6 Noble Group 0.230 0.025 12.2 Sinostar PEC 0.220 0.015 7.3 T T J Holdings 0.330 0.020 6.5 Top losers (mktcap >S$100m) S$ D % YHI Internationa 0.440 (0.030) (6.4) Fragrance Group 0.159 (0.008) (4.8) Riverstone 1.020 (0.050) (4.7) OKP Holdings 0.340 (0.015) (4.2) MYP 0.141 (0.006) (4.1) CH Offshore 0.240 (0.010) (4.0) FSSTI INDEX 2,600 2,700 2,800 2,900 3,000 3,100 3,200 3,300 3,400 3,500 3,600 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 REL. PERFORMANCE BY MARKET CAP 2,700 2,800 2,900 3,000 3,100 3,200 3,300 3,400 3,500 Jan-17 Apr-17 Jul-17 Oct-17 STI (LargeCap) MidCap Catalist Source: Bloomberg; PSR RESEARCH REPORT ComfortDelGro Corp Ltd – Earnings to bottom out in FY17e Recommendation: Buy (Maintained), Last Close Price: $2.02 Target Price: $2.63 (unchanged), Analyst: Richard Leow Earnings to bottom in FY17e due to three factors: 1.) Recognition of higher bus revenue, 2.) Narrowing of DTL losses and 3.) Strategic alliance with Uber. Maintain Buy; unchanged target price of $2.63 TECHNICAL PULSE AsiaPhos Ltd – Daily timeframe – Bullish There was another strong bullish rejection off the 0.040 support area on 03/01/18 with surging volume signals the possibility of a bottom here. Expect price to make a rebound higher next to test the 0.056 resistance area followed by 0.062. For more information and additional disclosures, refer to the technical pulse section below. BREAKING NEWS Contract manufacturer Venture Corporation is scheduled to join the Straits Times Index (STI) with effect from Jan 5, replacing Global Logistic Properties (GLP) which is being taken private. Venture was selected to join the STI as it maintained the highest market capitalisation of the STI Reserve as at market close on Jan 2. Midas Holdings Limited – Midas Holdings Limited is pleased to announce that its joint venture company, CRRC Nanjing Puzhen Rail Transport Co., Ltd. (“南京中车浦 镇城轨 车辆有限责任公司”) (“NPRT”) has secured three metro train car supply contracts worth RMB2.68 billion in the People’s Republic of China (“China” or the “PRC”). Midas has a 32.5% equity stake in NPRT, a Sino-foreign joint venture, engaged in the development, manufacture and sale of metro trains, bogies and their related parts. Source: SGX Masnet, PSR, Bloomberg, Business Times MACRO / SECTOR CHART OF THE DAY Previous: 64.0 Oct17 Latest: 69.4 Nov17 Manufacturing momentum is picking up in US. ISM new orders spiked to 69.4, the highest in 14 years, when the US economy was growing around 4%. All other components growing faster with inventories declining. The semiconductor and this new orders data point gives us a heads up that 4Q17 results for manufacturing and electronics companies in Singapore will be very robust.
ComfortDelGro Corp Ltd – Earnings to bottom out in FY17e Recommendation: Buy (Maintained), Last Close Price: $2.02 Target Price: $2.63 (unchanged), Analyst: Richard Leow
Earnings to bottom in FY17e due to three factors: 1.) Recognition of higher bus revenue, 2.) Narrowing of DTL losses and 3.) Strategic alliance with Uber.
Maintain Buy; unchanged target price of $2.63 TECHNICAL PULSE
AsiaPhos Ltd – Daily timeframe – Bullish
There was another strong bullish rejection off the 0.040 support area on 03/01/18 with surging volume signals the possibility of a bottom here.
Expect price to make a rebound higher next to test the 0.056 resistance area followed by 0.062.
For more information and additional disclosures, refer to the technical pulse section below.
BREAKING NEWS
Contract manufacturer Venture Corporation is scheduled to join the Straits Times Index (STI) with effect from Jan 5, replacing Global Logistic Properties (GLP) which is being taken private. Venture was selected to join the STI as it maintained the highest market capitalisation of the STI Reserve as at market close on Jan 2. Midas Holdings Limited – Midas Holdings Limited is pleased to announce that its joint
车辆有限责任公司”) (“NPRT”) has secured three metro train car supply contracts
worth RMB2.68 billion in the People’s Republic of China (“China” or the “PRC”). Midas has a 32.5% equity stake in NPRT, a Sino-foreign joint venture, engaged in the development, manufacture and sale of metro trains, bogies and their related parts.
Source: SGX Masnet, PSR, Bloomberg, Business Times
MACRO / SECTOR CHART OF THE DAY
Previous: 64.0 Oct17
Latest: 69.4 Nov17
Manufacturing momentum is picking up in US. ISM new orders spiked to 69.4, the highest in 14 years, when the US economy was growing around 4%. All other components growing faster with inventories declining. The semiconductor and this new orders data point gives us a heads up that 4Q17 results for manufacturing and electronics companies in Singapore will be very robust.
*Entry Price: 0.050 Stop loss : 0.039 Take profit : 0.062
Current Sentiment: Bullish Support 1: 0.040 Resistance 1: 0.056 Support 2: 0.035 Resistance 2: 0.062
Price has been falling precipitously since 24/11/17 with significant volume. The selloff got worse after price broke below the 0.080 support area on 28/11/17 where it lasted for the following five weeks.
Due to the heavy selloff, price has also found a new record low at 0.040 where the Relative Strength Index hit an extreme low of 10 suggesting extremely oversold condition. RSI measure momentum and a reading above 70 suggests overbought condition while a reading below 30 suggests oversold condition.
A near-term rebound looks likely after the past two months of aggressive selloff. After testing the 0.040 area on 27/12/17, buyers managed to defend that area resulting in the formation of a hammer. Moreover, for the following few days, the 0.040 area managed to hold up suggesting the formation of the near-term floor at the 0.040 support area. In addition, there was another strong bullish rejection off the 0.040 support area on 03/01/18 with surging volume signals the possibility of a bottom here. Keep in mind the RSI is still extremely oversold at 27.
Expect price to make a rebound higher next to test the 0.056 resistance area followed by 0.062.
Red line = 20 period moving average, Blue line = 60 period moving average, Green line = 200 period moving average *Entry price is derived from 1 tick above the high of the setup bar Source: Bloomberg, Phillip Securities Research Pte Ltd Jeremy Ng (+65 62121857) [email protected]
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Singapore Morning Note
The Phillip 20 Portfolio - Our top technical picks Company Name Ticker L Entry Date Entry price Stop Loss Last price Current gain/loss (%)
BREADTALK 5DA Long 2-Nov-17 1.645 1.470 1.680 2.13%
COGENT KJ9 Long 22-Mar-17 0.780 0.725 1.010 29.49%
CHIP ENG SENG C29 Long 12-Dec-17 0.945 0.880 1.000 5.82%
CHINA AVIATION G92 Long 13-Dec-17 1.670 1.510 1.640 -1.80%
ELLIPSIZ BIX Long 3-Aug-17 0.645 0.575 0.735 13.95%
FRENCKEN E28 Long 20-Jul-17 0.525 0.445 0.550 4.76%
F & N F99 Long 24-Mar-17 2.220 2.220 2.580 16.22%
GOLDEN AGRI-RES E5H Long 26-Oct-17 0.400 0.350 0.380 -5.00%
GOLDEN ENERGY AUE Long 2-Aug-17 0.425 0.360 0.400 -5.88%
JUMBO 42R Long 22-Sep-17 0.575 0.525 0.590 2.61%
MIYOSHI M03 Long 23-Aug-17 0.074 0.062 0.081 9.46%
PANUNITED P52 Long 22-Aug-17 0.550 0.500 0.575 4.55%
RIVERSTONE AP4 Long 12-Jul-17 1.065 0.995 1.020 -4.23%
SINOSTAR PEC C9Q Long 28-Nov-17 0.194 0.149 0.220 13.40%
SPH T39 Long 25-Sep-17 2.750 2.530 2.780 1.09%
SINGAPORE O&G 1D8 Long 14-Sep-17 0.490 0.420 0.440 -10.20%
THAIBEV Y92 Long 14-Mar-17 0.955 0.825 0.915 -4.19%
WING TAI W05 Long 11-Dec-17 2.270 2.060 2.290 0.88%
YOMA STRATEGIC Z59 Long 1-Dec-17 0.505 0.470 0.540 6.93%
Monthly Phillip 20 performance update May 17 performance
June 17 performance
July 17 Performance
August 17 Performance
September 17 Performance
October 17 Performance
November 17 Performance
**Take profit will be updated accordingly in the future technical pulse report
Note: The “Phillip 20 Portfolio” is an actively managed portfolio that utilises technical analysis for selecting stocks. We have capped the amount of stocks to 20 for the portfolio, and each trade is equally weighted at 5% of the initial capital.
Inception date is the start of May 2017 with an initial capital of $100,000.
SUMMARY OF US OPEN TRADE POSITIONS (USD)
Name Trade Position Entry Last Done Target Price Stop Loss Performance
Walt Disney Co. Open 107.72 111.80 116.00 102.62 3.79%
GameStop Corporation Open 16.80 18.26 20.00 14.95 8.69%
AT&T Inc Open 36.44 38.54 41.70 33.95 5.76%
Applied Optoelectronics Inc. Open 43.64 37.91 47.54 N/A -13.13%
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Singapore Morning Note
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