Market Testing STI 3180-3200 Support

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China Tower IPO Public Offer

China Tower is seeking for an USD 8.7 billion IPO in Hong Kong, the biggest globally in four years. It is expected to debut on the Hong Kong exchange on 8 August 2018, with pricing of each IPO share slated to be out on 1 August 2018. 43.1 billion shares will be offered globally at a range of HKD 1.26 to HKD 1.58 (USD 0.16 to USD 0.20) for each share.

China Tower is the world’s largest telecommunications tower infrastructure service provider. In 2017, China Tower was ranked first amongst the global telecommunications tower infrastructure service providers in terms of the number of sites, number of tenants and revenue. At end-2018, China Tower’s sites were spread across 31 out of 34 provinces in China; with a market share of approximately 96.3% in terms of the number of sites, and 97.3% in terms of revenue.

China Tower generates its revenue mainly from its tower business and Distributed Antenna System (DAS) business. During 2015 - 2017, a substantial amount of operating revenue was generated from China’s Big Three Telecommunications Service Providers - China Mobile, China Unicom and China Telecom; with operating revenue increasing by 22.6% from RMB 55,997 million in 2016 to RMB 68,665 million in 2017. Operating profit margin grew from 9.1% in 2016 to 11.2% in 2017.

How to apply for the China Tower IPO?

Customers will be able to subscribe to the IPO public tranche if they fulfil the following criteria:

·         Minimum subscription of SGD200k (minimum size of 800,000 shares for this China Tower IPO application)

·         Customers must sign the irrevocable form. 

Please contact me at 90400848 or email to lionellimtp@phillip.com.sg if you are interested.

Complimentary Live Quotes!

To empower customers to trade online, as well as to provide a more holistic platform for frequent traders, we have extended our Complimentary Live Price Quotes* promotion for customers, while expanding the number of markets which offers Live Price Quotes. Markets that have Complimentary Live Price Quotes include:

United States	Hong Kong	Japan	Malaysia
NASDAQ NYSE NYSE-MKT	Hong Kong Pre-IPO**	TSE	BURSA	Thailand SET

Please contact me at 90400848 or email to lionellimtp@phillip.com.sg to know more and for account opening.

HONG KONG PRE-IPO TRADIING

The Hong Kong Pre-IPO trading market is a channel provided by Phillip Securities for customers to trade Hong Kong shares one day before their official listing in the Hong Kong Exchange. Phillip Securities is the first broking house in Singapore and Hong Kong to offer customers the Pre-IPO trading channel.

The performance of stocks in the Pre-IPO trading session should not be considered as an indicator of its price and demand in the official trading session.

Please contact me at 90400848 or email to me at lionellimtp@phillip.com.sg to know more and for account opening.

Receive S$38* Cash Credit when you make a purchase contract in the Japan market!

Receive SGD38* Cash Credit when you make a purchase contract in the Japan market during the period of 1 Jun – 31 Aug 2018!

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My Greatest Fear: Currency War

The worst thing that I think can happen during the Trade War is the decision by China to devalue its currency.

The last time it happen in 2015 and 2016, the world stock market took a plunge. 

China is our major trading partner, and since RMB is devalued, companies earning RMB will earn less relative to SGD. 

Asian exports to China will become more expensive. Hence Asian goods and services will become less competitive.

This explains why the market plunge in 2015 and 2016.

Can this lead to a Recession? I really don't know. It's too early to tell.

My view is to Trade and Invest with Caution.

STI broke below 2018 Low of 3338

Dear Clients,

As reported in the news over the weekend, China announces retaliatory tariffs on US$34 billion worth of US goods. This could be the start of an impending global trade war.

Trade war, together with the recent interest hikes by Fed and any further rise in oil prices is likely to slow down economic growth.

Since the start of 2018, the STI Index has been struggling to break out convincingly. Each correction after an attempted rally failed to achieve higher highs. Hence for the last 6 months, the STI has been largely range bound between 3330-3640.

However, the STI has just broken below key support level of 3350 and hit below 2018 low of 3338 this morning. The next immediate support level and key support level is around 3270 and 3200. (Please see chart below).
Are we be witnessing a major correction? If the trade war escalates further, it maybe the start of a bear market.

STI Chart 15.6.2018. Click to Enlarge.