Daily Archives: July 24, 2018


Singapore Stocks Watch :RHB maintains ‘buy’ on SGX, expects good earnings growth

Singapore Stocks Watch :

Representative RHB has looked after its “buy” approach the Singapore Exchange (SGX) with an objective cost of S$9, speaking to a 20 for each penny upside.

As at 1.57pm on Tuesday, the counter was exchanging at S$7.46 each, down 0.3 for every penny or two Singapore pennies.

The SGX will discharge its outcomes for monetary year 2018 on July 27, reseller’s exchange close.

RHB noticed that Bloomberg information showing that SGX’s monetary 2018 securities normal day by day esteem (SADV) of S$1.24 billion is in accordance with its desire for S$1.2 billion, and higher than financial 2017’s S$1.12 billion.

Despite the fact that July 2018’s month-to-date SADV of S$1.11 billion was powerless, RHB experts noticed that it could have been incompletely because of the Fifa World Cup that prompted bring down exchanging volumes.

Looking forward, the examiners are bullish on the Singapore bourse’s SADV, and have accepted SADV of S$1.39 billion for financial year 2019.


“Worldwide improvements, incorporating further climbs in the US Federal assets rate and exchange war concerns, could invigorate all the more exchanging of stock property in financial specialists’ portfolios, and thus create exchanging volume,” said RHB expert Leng Seng Choon.

The dealer is likewise guaging subsidiaries normal day by day volume (DADV) of 0.82 million for financial 2019, in the wake of considering in a few negatives from the exchanging of India’s Nifty 50 file prospects, which represents 11 for every penny of SGX’s aggregate subordinates exchanged volume.

Also, RHB is expecting great income development and a solid monetary record, close by an alluring profit yield from the counter.

“SGX’s FY19F profit yield of 4.6 for each penny is twofold that of Singapore’s sovereign 10-year security yield of 2.42 for every penny. We are guaging FY2019 net benefit development of 9.7 for every penny. SGX is in a net money position and has an imposing business model over the exchanging of Singapore values.”

RHB likewise noticed that its objective cost depends on a monetary 2019 P/E (value profit proportion) of 24 times, or one standard deviation over the three-year mean of 22.2 times.

In any case, key dangers incorporate worldwide financial variances and geopolitical advancements.

The result of the intervention between the SGX and the India Index Services and Products Ltd could likewise affect future subordinates exchanging volume and henceforth profit, RHB said.


Forex Market Report


Forex – Dollar Steadies, Yen Pares Back Early Gains
Forex – EUR/USD bounces off lows, reclaims 1.1720
Forex – Trump Comments Knock Dollar, Yen Up on BoJ Speculation


EUR/USD now alternates gains with losses ahead of the opening bell across the pond, managing to stage a rebound from 1.1690 to the vicinity of 1.1730, where met some decent hurdle. Spot keeps navigating the upper end of the recent range above 1.1700 the figure amidst a generalized sideline theme in the global markets. On the USD-side, the greenback stays trapped within a tight range against the backdrop of rising yields in the US 10-year note and always wary of headlines coming from the US-China trade dispute. In the docket, US Chicago Fed index rebounded to 0.43 in June, while Existing Home Sales during the same period are due later. At the moment, the pair is losing 0.05% at 1.1714 and a breakdown of 1.1690 (10-day sma) would target 1.1676 (21-day sma) and then 1.1575 (low Jul.19). On the flip side, the next hurdle at 1.1748 (high Jul.17) followed by 1.1792 (high Jul.9) and finally 1.1853 (high Jun.14).


The GBP/USD pair quickly reversed an early European session dip to 1.3113, albeit continued with its struggle to make it immediate barrier near mid-1.3100s. Despite a bearish development, wherein the EU leaders rejected the UK PM Theresa May’s current Brexit plan, the pair continued gaining positive traction at the start of a new trading week and was supported by a follow-through US Dollar selling bias. The US President Donald Trump’s comments on Friday, showing displeasure over the Fed’s
monetary tightening and the recent dollar strength, kept the USD bulls on the defensive and helped the pair to build on last week’s goodish rebound from YTD lows. The bullish momentum, however, lacked any strong conviction, with easing USD bearish pressure capping the pair near a confluence resistance comprising of 200-hour SMA and 50% Fibonacci retracement level of the 1.3363-1.2957 recent downfall.










  • U.S. crude oil prices were steady on Monday after U.S. President Donald Trump warned Iran over Twitter on Sunday night. West Texas Crude oil futures rose 0.31% to $68.47 a barrel as of 10:42 AM ET (14:42 GMT). Meanwhile Brent crude futures, the benchmark for oil prices outside the U.S., increased 0.63% to $73.53. Prices surged earlier in the session after Trump warned Iranian President Hassan Rouhani on Sunday to “never, ever threaten the U.S. again,” or Iran would “suffer the consequences.”
  • Oilfield services provider Halliburton Co (N:HAL) on Monday reported a 24 percent increase in quarterly revenue, narrowly beating analysts’ estimates, as higher oil prices sparked a surge in U.S. crude production activity. Halliburton has benefited from soaring U.S. oil production, which reached a record 11 million barrels per day in July, according to a government estimate.
  • The world’s largest oil companies are pumping more natural gasthan ever before, helping to spur a rise in profits while sating rising global demand for fuels that can mitigate global greenhouse gas emissions. This marks a shift over the past decade for an industry that once focused predominantly on crude oil, with gas in most cases an after-thought. Now, the rise of gas-powered electric generation, surging production from U.S shale fields and the burgeoning liquefied natural gas (LNG) industry that makes shipping the fuel possible, have conspired to create a boom.



  • Real gross-domestic-product growth in the country slipped 0.1 percentage points to 6.7% in the second quarter, the statistics bureau reported Monday, a pace not seen since 2016. That is still over the government’s target of around 6.5%, and year-over-year growth remained at 6.8%. The fall was widely expected after Chinese policymakers began a campaign to curb financial leverage last year, which analysts say has weighed heavily on growth.
  • Canada’s economic growth is strong and some housing market vulnerabilities have improved, but trade policy is a big risk to the outlook and the government should reform taxes to boost corporate competitiveness, the OECD said on Monday. The Paris-based Organisation for Economic Co-operation and Development said while GDP growth is projected to remain robust, with exports underpinned by strong global demand, rising rates will sap some consumer strength.
  • China will adopt a more vigorous fiscal policy to help tackle external uncertainties without resorting to strong policy stimulus, state radio said on Monday, citing the cabinet. Slowing economic growth has sparked a heated debate among government researchers on whether fiscal policy should play a bigger role in softening the impact of a trade war with the United States. “The proactive fiscal policy will become more active,” state radio cited a statement issued after a cabinet meeting, chaired by Premier Li Keqiang, as saying.


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