Daily Archives: October 29, 2018

29Oct

Singapore stocks Watch: STI resumes Monday afternoon at 2,990.07, up 0.6% on day

Singapore stocks Watch: SINGAPORE shares resumed trading on Monday in positive territory, with the Straits Times Index up 0.6 per cent or 18.05 points to 2,990.07 as at 1.03pm.

About 1.03 billion shares worth S$420 million in total changed hands, which worked out to an average unit price of S$0.41 per share.

Losers outnumbered gainers 145 to 134.

The most actively traded stock was Pine Capital, which rose S$0.001 to S$0.002 with 40.5 million shares changing hands.

Other actives included Genting Singapore and Thomson Medical Group.

Among financials, UOB shares were trading up S$0.25 or 1 per cent at S$24.32 while DBS shares were flat at S$23.10.

HPH Trust kept at ‘buy’ by OCBC as management keeps full-year DPU guidance

OCBC Investment Research is maintaining Hutchison Port Holdings Trust (HPHT) at “buy” after management stuck to its full-year DPU guidance at 17-20 HK cents although the research house expects high volatility heading into the US mid-term elections as well as on the back of developing US-China trade tensions.

Management has noted an influx of rush orders in early 4Q18, presumably timed to beat the implementation of the US tariffs in early 2019. Meanwhile, Trump and Xi are due to meet during the G20 meeting, which is to be held on Nov 30 and Dec 1.

Looking ahead, OCBC expects more robust throughput figures in 4Q18 for both Yantian and Kwai Tsing, though it notes the front-loading of orders may result in weaker volumes for 1H19.

To recap, HPHT reported 3Q18 revenue dropped 6.1% y-o-y, with operating profit decreasing 8.9% y-o-y. PATMI dropped 11.4% y-o-y to HK$239.5 million ($42.2 million). 9M18 PATMI came up to 92% of our initial full-year forecast due to lower-than-expected revenue declines to OCBC’s overly bearish ASP projections.

See: HPH Trust reports 11% lower 3Q earnings of $42.3 mil as throughput falls; rejects ROFR offer

For 3Q18, HPHT’s throughput was down 7.3% y-o-y. 3Q18 Yantian throughput was up 0.1% y-o-y, with outbound cargoes to the US growing 4% y-o-y, while those to the EU declined 3% y-o-y. On the other hand, 3Q18 Kwai Tsing throughput was down 16.7% y-o-y, mainly due to a reduction in transshipment cargoes.

Management noted that Kwai Tsing’s September volumes were particularly bad, possibly due to the Typhoon Mangkhut. On the other hand, Kwai Tsing ASP was up 7% y-o-y mainly due to an unusually low tariff base in 3Q17, which in turn was the result of booking nine months of contractual discounts for a large customer during the quarter.

“We believe without this one-off low-base effect, HPHT’s Kwai Tsing ASPs were generally flat or up slightly on a y-o-y basis due to the decline in transshipment as a proportion of total volume,” says OCBC analyst Deborah Ong in the report.

OCBC fair value remains at US$0.36, after adjustments.

HPHT is currently trading at a 10.1% FY18F yield and at 0.42 times book which is more than two standard deviations below 0.75x its average since listing.

29Oct

TODAY’S COMEX GOLD SIGNAL AND DAILY TECHNICAL REPORT

COMEX GOLD SIGNAL

COMEX GOLD SIGNAL

COMEX GOLD SIGNAL

COMEX GOLD SIGNAL

INTERNATIONAL COMEX NEWS

  • Gold hit a three-month high and notched a fourth-straight weekly gain on Friday for its best winning streak since last Christmas into January, as a global rout in equities helped the yellow metal retain its steady and slow climb. Both spot and futures prices of bullion were also on track to their best monthly gains since January, despite a sharp rally in the dollar this month amid the specter of higher U.S. interest rates.
  • The global rout in equities is continuing to punish oil bulls, so much so that many may even doubt the non-correlation between stocks and commodities exists. Despite a slight gain on the day, crude futures in both New York and London fell as much as 3% on the week for their third-straight weekly loss. The last time oil saw such a bearish trend was between the final weeks of July to mid-August.
  • Cash-strapped state-run oil companies in Mexico and Venezuela have begun diverting crude historically processed for domestic use and sending it to U.S. refiners now facing transportation constraints to secure similar grades from Canada, data shows. The situation reflects an unusual set of events, including urgent needs by Venezuela and Mexico for cash for debt payments and investment, and demand for heavy crude in the United States due to less availability of Canadian oil, said traders and analysts.

COMEX GOLD SIGNAL

ECONOMY NEWS

  • The Bank of Japan will consider making a slight change to the timing of its government debt purchases to encourage more trading activity between financial institutions, the Asahi newspaper reported on Saturday. The central bank currently buys debt in the open market one day after the finance ministry auctions new bonds as part of quantitative easing. The BOJ will consider pushing these purchases back to two days after the auction of new debt to allow these bonds to circulate in the market for longer, the Asahi said without citing sources.
  • Leveraged loans are standing out as the best-performing asset class in an otherwise brutal October as rising volatility in global equities has rippled across the capital markets. While investors pulled US$7.4m from loan funds in the week ending October 24, the first week of outflows in four months, the asset class has been largely unfazed by the risk-off sentiment created by the deepening stock market rout.
  • The International Monetary Fund said on Friday it approved a measure to increase a stand-by financing agreement for Argentina to about $56.3 billion.

COMEX GOLD SIGNAL

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