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Phillip Capital Morning Note - 3 Nov 2020

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Publish date: Tue, 03 Nov 2020, 09:33 AM
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President Donald Trump and Democrat Joe Biden capped their bitter race with a final blitz of campaigning Monday in states critical to deciding the outcome of the election. The two candidates traded insults and displayed contempt for each other before noisy audiences. The president kicked off a run of five rallies in four states: North Carolina, Pennsylvania, Wisconsin and Michigan. Biden spent most of the day in Pennsylvania, a state critical to each candidates’ hopes of victory. The Democrat stopped in Ohio, projecting confidence he has a chance to flip a state Trump won handily in 2016. He warned earlier that he wouldn’t let Trump declare victory in Tuesday’s election before the results are clear. Here's what nearly 100 million early votes say about turnout.

Asian stocks are set for a muted open, with investors remaining anxious ahead of Tuesday’s U.S. presidential election. Crude oil rebounded. Futures edged up in Australia and Hong Kong. Japan is closed for a holiday and Treasuries won’t trade until London opens. In the U.S., the S&P 500 Index climbed after plunging 5.6% last week. The tech-heavy Nasdaq 100 lagged behind, weighted down by Apple and Amazon.com. Treasury yields dropped and the dollar touched a one-month high.

Frasers Centrepoint Trust FY2020 DPU decreased 25.1% year-on-year to 9.042 cents due to COVID-19 pandemic. FY2020 financial performance impacted mainly by rental rebates dispensed in 2H20 to help tenants cope with challenges arising from COVID-19. Excluding the impact from the rental relief, FY2020 revenue and NPI would have decreased 2.4% and 0.7% year-on-year, respectively. Portfolio total tenants’ sales recovered to near pre-COVID-19 level and shopper traffic stabilised at 60% to 70% of pre-COVID level.

Small and micro enterprises hit by Covid-19 will have a six-week window in which to renegotiate certain contracts, with no penalties for early termination if negotiations fail, under the new Re-Align Framework proposed in a Bill introduced in Parliament on Monday. The framework will cover leases or licences for non-residential immovable property, with a term of no more than five years; hire-purchase or conditional sales agreements for commercial equipment or vehicles, except agreements with banks and finance companies; rental agreements for commercial equipment or vehicles; and contracts for the sale and purchase of goods or services. It includes contracts with the government.

Lippo Malls Indonesia Retail Trust (LMIRT) reported an 87.5 per cent year-on-year decline in its a distribution per unit (DPU) in the third quarter of 2020 to 0.07 Singapore cent, its manager said in an exchange filing late on Monday night. Net property income fell 70.2 per cent to S$13.1 million, while gross rental income slid 61.1 per cent to S$15.2 million. Total gross revenue declined by 58.3 per cent to S$28.9 million.

Shares of Wilmar International jumped 5.5 per cent on Monday after the agri-business group posted a 20 per cent rise in Q3 net profit and announced a special dividend on Friday. The counter hit an intraday high of S$4.28 on Monday, up 5.9 per cent or S$0.24 as at 9.55am. The last time the counter closed near this level was on Oct 22 at S$4.30. Wilmar's core net profit rose 19.6 per cent to US$501.4 million, the highest third-quarter core results since its listing, the group said in a bourse filing.

Four Chinese regulators including the central bank and banking watchdog invited billionaire Jack Ma and Ant Group's top executives to a supervisory interview on Monday, a rare meeting with multiple financial regulators that underscores rising government scrutiny of the company before its stock-market debut. "Ant Group will implement the meeting opinions in depth," the company said in a statement. It will follow guidelines including stable innovation, an embrace of supervision and service to the real economy, it said.

Source: SGX Masnet, The Business Times, Bloomberg, Channel NewsAsia, Reuters, PSR

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