US-China trade tensions

Trump says he'll raise China tariffs if Xi won't meet at G-20

(June 11): President Donald Trump threatened to raise tariffs on China again if President Xi Jinping doesn’t meet with him at the upcoming Group of 20 summit in Japan.

Trump told reporters at the White House on Monday that he could impose tariffs of 25%, or “much higher than 25%” on US$300 billion ($408.4 billion) in Chinese goods. “We’ve never gotten 10 cents from China and now we’re getting a lot of money from China,” the president said.

Dairy Farm downgraded to 'neutral' following share price rebound

SINGAPORE (May 30): RHB Group Research is downgrading Dairy Farm International Holdings to “neutral” from “buy” as its share price edges closer to the target price of US$8.25.

“In view of the escalating uncertainties brought forth by the ongoing US-China trade war, and that the share price has rebounded from the low of US$7.34 in March this year, we think the stock is now fairly valued,” says analyst Juliana Cai in a Wednesday report.

“In terms of valuation the stock is now trading at 22x FY19F P/E, similar to the peer average,” she adds.

Focus on domestic consumption helps MapletreeLog mitigate trade conflict impact

SINGAPORE (Jan 11): UOB Kay Hian is reiterating its “hold” call on Mapletree Logistics Trust (MLT) with a higher target price of $1.39 from $1.36 previously and recommends an entry price of $1.26.

In a Friday report, analyst Jonathan Koh says, “We expect MLT to register positive rental reversion of 2-3% on a portfolio-wide basis for FY19 driven by Hong Kong, China and Vietnam.”

In Hong Kong, supply of logistics space is tight as there are no new warehouses coming on-stream, while logistic space is being redeveloped into commercial properties.

Market valuations may be inexpensive but stay defensive: RHB

SINGAPORE (Jan 2): RHB Research prefers to stay selective and defensive amid growth uncertainties in 2019.

The Straits Times Index (STI), down 12% in USD terms, could remain under pressure this year amid slowing GDP growth and an uncertain trade outlook due to China-US tensions.

In a Wednesday report, analyst Shekhar Jaiswal says, “While 12.6x forward P/E and 4.2% dividend yield make the STI’s valuations look compelling, we recommend investors stay selective and focus on buying stocks offering stable earnings, strong balance sheets, and sustainable dividends.”

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