Unexpected Markets Rebound Despite Bad News

US escalated its trade war with China as President Trump announced on 17 September that he would go ahead with imposing 10 percent tariffs on about US$200 billion worth of Chinese imports that will take effect ...

SI Research: 3 National Day Rally Stocks For Singaporeans

Soon after Singapore celebrated the nation’s 53rd birthday, Prime Minister Lee Hsien Loong addressed some of the more pressing concerns which have been on Singaporeans’ minds during the National Day Rally (NDR) 2018. In his speech, PM Lee devoted a large part of his time touching on the new schemes to alleviate housing concerns, new changes made to healthcare subsidies as well as the rising costs of living. With that in mind, we identified three stocks centered on the themes mentioned during NDR 2018 which we think could benefit from the new policies.

SI Research: 3 Defensive Stocks To Accumulate On The Cheap

The local equities market has been in the correction phase for quite some time now, as the benchmark Straits Times Index slid more than 11.2 percent after hitting a historical high of 3615.28 in May this year. While some may see this as an opportunity for bargain purchases, others are fearful that this may just be the beginning of a more devastating decline that is yet to come. Since there is no way to ascertain if we are near the market bottom, adding on to positions of well-run companies in the defensive sectors could therefore be a sensible approach in times like this. Defensive businesses offer products and services which are needed by consumers all year round and hence their share prices are less likely to be affected during downturns.

Investors’ Corner (Jadason Enterprises, Q&M Dental Group (Singapore), Fu Yu Corporation, First Resources)

Jadason Enterprises (Jadason) missed expectations with a loss of $0.4m. Although there was a recovery in gross profit margin to 22.4% driven by a better product mix in the PCB drilling segment, the 7% decline in revenue led to lower profitability. At the operating profit level, the distribution business incurred a loss of $0.5m while the PCB drilling business registered a profit of $0.3m. Excluding an exchange loss of $0.6m, adjusted net profit was $0.1m. In addition, the group remained in a net cash position. Jadason guided for a challenging 2H18 due to the trade tensions between the US and China which would affect the group’s end customers. Given the uncertain demand outlook, we lower our target price to $0.073 based on an unchanged one time price-to-book value. Maintain ADD. CIMB Research (16 Aug).

Trade Talks Bring Rays Of Hope For An Imminent Rebound

Asian markets were badly shaken last week as Turkey’s currency crisis raged on. The Turkish lira has plunged more than 20 percent last week and as much as 40 percent against the dollar since the start of the ye...

Analysts’ Views On 3 Local Banks

Banking stocks have slightly outperformed the general market so far with the FTSE ST Financial Index delivering a negative 3.1 percent year-to-date return as at 13 August 2018, in comparison to Straits Times In...

SI Research: 4 Sweet Spots That Sweeten ABR Holdings

Have you ever passed by a Swensen’s restaurant and have a sudden craving for an ice cream? Apart from the delightful selection of ice cream desserts, the family-friendly restaurant chain with its signature Tiffany lamps also offer an all-day menu for affordable western meals which diners could feast on in a distinctive and cosy ambience. However, few may have realised that this popular franchise brand is actually owned and operated by a company listed on the Singapore Exchange – ABR Holdings (ABR).

Mixed Results From Corporate Earnings

Developments concerning the trade war took another turn in the last few days when the Trump administration threatened to jack up the proposed tariff rate on the next US$200 billion of Chinese imports to 25 perc...