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Weekly Outlook

Market Commentary – July 2024

Market Commentary – July 2024

Equity Market Update:

 

Source: Bloomberg

The equity market displayed mixed results in July, with investors gravitating towards value stocks. The DJIA (+4.5% MTD) outperformed the growth-oriented NASDAQ Composite (-0.7% MTD), while the S&P 500 (+1.2% MTD) continued its upward momentum on a month-over-month basis.

Developed market equities (+1.8% MTD) outperformed emerging markets (+0.4% MTD), widening their year-to-date lead by approximately 5.3%. A sector rotation appears underway, with investors selling off large caps (+1.8% MTD) in favor of small-cap stocks (+6.9% MTD). This was driven by mounting anticipation of a potential rate cut in September.

APAC equities had varied results, but ASEAN equities (+4.1% MTD) outperformed their U.S. counterparts, with Japan (+5.5% MTD) and Singapore (+5.1% MTD) leading the region. Conversely, Chinese (-1.9% MTD) and Hong Kong (-0.9% MTD) equities were the worst-performing major APAC markets.

Source: Bloomberg

The S&P 500 sectors have exhibited mostly positive performance, with notable divergences between growth and defensive sectors. The growth and cyclical sectors, specifically Communication Services (-4.0% MTD), InfoTech (-2.1% MTD), and Consumer Discretionary (+1.7% MTD), were among the worst performers. The underperformance in these sectors was primarily driven by a weak job data report released at the end of July, which heightened recession fears and triggered a sell-off among growth stocks.

Conversely, defensive sectors demonstrated strong performance. Utilities (+6.8% MTD) led the gains, benefiting from their perceived safety in times of economic uncertainty. Other defensive sectors that thrived included Real Estate (+7.2% MTD) and Financials (+6.5% MTD), both of which are expected to benefit from the expected interest rate cuts in September.

Source: Bloomberg

In July, global REIT markets experienced positive stock performance across the board with Malaysia (+11.6% MTD) and Thailand (+11.5% MTD) led the gains. SREITs (+7.0% MTD) also posted strong performance with a yield spread that remains highly attractive on a global scale, standing at 2.5%. Challenges such as persistent inflation and policy tightening have impacted SREITs’ distributions so far this year. However, our medium-to-long-term outlook for the sector remains positive due to the high quality of the underlying assets, providing a solid foundation for sustained performance.

Additionally, SREITs are currently undervalued, with a Price-to-Book ratio of 0.89 that lies significantly below historical averages. This valuation gap, on top of the attractive yield, presents a potential opportunity for investors seeking value appreciation and income. The combination of high-quality assets, attractive yields, and undervalued valuations positions SREITs favorably in the current economic environment.

Equity Market Outlook:

Source: Bloomberg

The stock market turned risk-off in July, with the VIX surging by 344 basis points month-over-month, exceeding its three-month average. The yield curve remained inverted, highlighting growing economic concerns. Investor caution was evident, particularly with the notable higher drop in the 2-year (short-term) Treasury yield when compared to the 10-year. Despite these signs of increased risk aversion, the credit spread between High Yield and investment-grade bonds remained stable, indicating no significant change in corporate bond market risk perception.

Source: Bloomberg

Recent economic data has been largely positive, bolstering the equity market rally. Inflation metrics, including both the headline and core Consumer Price Index (CPI) and the Personal Consumption Expenditures (PCE) index, have shown month-over-month declines, indicating moderation. The PCE index, closely watched by the Fed, offers a favorable signal for the equity market. However, the rise in the headline Producer Price Index (PPI), despite a stable core PPI, suggests persistent inflationary pressures, as PPI often acts as an early indicator for broader inflation trends.

Additionally, both US and Global composite PMIs have contracted month-over-month, raising concerns that the recent rate cut might have been too late to prevent a rapidly cooling economy. This contraction, in addition to the weak job report data, has prompted a noticeable shift in market sentiment, with investors moving from growth stocks to more stable, income-generating defensive sectors. This shift underscores growing concerns over economic stability and the potential for a recession, as evidenced by the market’s cautious reaction to economic indicators signaling a potential slowdown.

Looking ahead, we anticipate continued positive earnings in the second half of 2024. According to FactSet, of the 75% of S&P 500 companies that have reported their Q2 2024 results, approximately 78% have posted positive EPS surprises, while 59% have exceeded revenue expectations. The recent market sell-off might present a buying opportunity as it is potentially an overreaction to the slowdown effect that should have happened earlier when the biggest & fastest interest rate hike in a generation had not crashed the economy. Cooling inflation, coupled with the recent weak job report, increases the likelihood of upcoming rate cuts, which would further support equities in the long run.

We are optimistic about small caps moving forward but remain cautious about completely favoring them over large caps due to ongoing market uncertainty. Big techs, with their robust cash flow generation and substantial reserves, are well-positioned to weather economic downturns. Their minimal reliance on external borrowing for growth further enhances their defensive appeal, especially if interest rates remain elevated for an extended period. Historically, tech stocks have also performed well in low-interest-rate environments, which could be beneficial if the Fed begins to cut its benchmark rate aggressively.

Moreover, the transformative impact of AI on earnings is just beginning. We are optimistic about AI’s potential to boost productivity in early-adopting sectors, which could reduce unit labor cost inflation and potentially lower core inflation below market expectations. This evolving landscape supports a positive long-term outlook for large-cap tech stocks.

China Market Update:

The overall trend for the Shanghai Composite and Shenzhen Component exhibited moderate growth in the month of July. Many companies reported strong quarterly earnings, particularly in the tech and consumer sectors, which led to a rise in their stock prices. Technology and consumer discretionary sectors outperformed, driven by government support for innovation and improved consumer spending. Conversely, traditional industries like manufacturing faced headwinds from slower global demand.

The Caixin/S&P Global services purchasing managers’ index (PMI) rose to 52.1 from 51.2 in June, pointing to expansion for the 19th straight month. The index covers mostly private and export-oriented companies and the 50-mark separates expansion from contraction on a monthly basis. In contrast, the official services PMI showed the sector stalling in July from growth in June, with retail sales, capital market services, and real estate service industries all shrinking.

The Third Plenary which was conveyed from 15-18 July emphasized economic reforms and support for green technology. The key details are as follows

  • Economic Reforms: The Pro-private sector reforms encourage private participation in key sectors including fiscal and tax reforms, financial reform, and social welfare reforms.
  • Technology and Innovation: There was a strong push on new generation sectors like IT, AI, aerospace, renewable energy, and high-end equipment manufacturing.
  • Green Transition: The focus on green development with commitments to reduce carbon emissions.

These announcement boosts investor confidence and positive for stocks in Technology, green energy, and consumer goods.

Overall, we saw positive economic indicators like steady GDP growth and improved industrial output which boosted investor confidence. The enhanced consumer spending also supported market performance. Premier Li Qiang highlighted at the World Economic Forum the growth of new industries as a pillar of China’s economic development. This is evident in the official PMI for high-tech manufacturing, which rose to 52.3 in June from 50.7 in May, reflecting increased investment in advanced sectors like computer chips and electric vehicles.

Looking forward, economists and investors are anticipating the Third Plenum scheduled for July 15-18, where top Communist Party officials will convene in Beijing for strategic planning.

Despite current challenges, we maintain optimism about China’s economic outlook, expecting government stimulus measures and necessary market adjustments to support future growth.

Fixed Income Update:

Source: Bloomberg

The month of July saw strong gains for major bond market indices led by the Global Aggregate Bond Index which advanced 3.23% on a 1M basis while short-duration bonds as represented by the US 1-3 Year IG Index the laggard returning 1.25%. This strong performance in bonds in July means that on a YTD basis, returns across most of these indices are now in positive territory except the Global Aggregate Bond Index which is still slightly negative at -0.5%.

The strong returns in the bond market in July also come on the back of a faltering stock market with the Nasdaq down 2.3% and the S&P500 eking out a mere 0.86% return on the month. This outperformance in bonds may be the result of a continuation of what we highlighted in last month’s commentary about the market’s growing expectations of an imminent rate cut from the FED along with further policy easing from other major central banks. During the July FOMC meeting, Powell delivered exactly what the markets were expecting, holding rates steady but signaling the possibility of a 25bps cut as soon as the September meeting; what has been dubbed by some bond market participants as a “dovish hold.”

However, it is important to note as well that leading up to the FOMC several prominent voices such as Chief Economic Advisor of Allianz Mohammed El-Erian and former Federal Reserve Bank of New York President Bill Dudley had urged Powell to move quicker and cut rates in July itself.

Beware the Bull Steepener

In light of the impending rate cut by the FED, it may also be instructive for us to pay attention to how the US Treasury yield curve has been reacting recently for additional clues on the macroeconomic outlook in the US. Over the past year what we have witnessed is a “bull steepening” effect. This is when the front end of the yield curve falls at a faster rate than the long end.

For example, exactly one year ago, the US 2-year treasury yield was trading at about 4.8% while it currently trades at about 4.2%. The 10-year yield on the other hand finds itself trading at about the same level as it was a year ago at about 4%. In other words, we have gone from an almost -80bps inversion to what is now closer to a -20bps inversion between the 2- and 10-year yields. This “un-inverting” process historically has been the bond market’s early warning sign of a fast-approaching recession.

Such moves across the yield curve come at a time of great confusion in the markets surrounding the actual strength of the US economy and labor market with viewpoints diverging across Wall Street economists and analysts alike. Just as recent as June, many on Wall Street were hailing the exceptionally strong US economy which was expected to expand by 2.5% in 2024 while inflation also continued to trend downwards – the much-anticipated soft landing scenario that the FED had painstakingly engineered. Some had even gone so far as to suggest that the yield curve was an outdated indicator that was no longer fit for purpose. However, it is becoming increasingly evident that bad news is brewing.

From the corporate earnings standpoint, we have had a slew of bad reports for Q2 24 from automakers such as Ford to luxury names such as LVMH who claimed that its wine business took a 12% topline hit because people were “too sad” to buy champagne! And it’s not just the luxury consumer who is showing signs of strain. Even consumer staples mainstays such as Proctor & Gamble and PepsiCo announced a weak set of earnings and warned of a weak consumer who is becoming increasingly budget-focused.

The labour market is also showing signs of deterioration with the Sahm rule[1], a key recession indicator, close to being triggered as of this writing at the end of July.

In the end, it may be wise for us to take our cues from what the yield curve is telling us which is that the US economy is likely much weaker than what the market perceives, and prepare accordingly.

BOJ delivers rate hike, signals tapering of bond purchase program

Following a policy meeting on July 31st, the Bank of Japan raised its overnight call rate to 0.25%, the highest level it has been since 2008. The surprise move sent tremors across financial markets with the Yen surging to its strongest level against the greenback since March and causing many investors to reassess the viability of the infamous Yen carry trade. The rate hike also sent the Japanese Nikkei tumbling in its aftermath. The BOJ also reaffirmed its plan to commence tapering its government bond-buying program and shrink the size of its balance sheet. BOJ Governor Kazuo Ueda has also not ruled out the possibility of another rate hike later in the year.

Though Japanese equities were hit badly across the board, the bank stocks took it especially hard on the chin with the Topix bank index plunging 11%. The fear with Japanese financials is the huge paper losses that may be incurred on their JGB holdings though there is evidence from our own analysis that the banks have moved in the prior quarters to reduce duration on their balance sheet ahead of the BOJ tightening cycle. This means that the outsized moves in the share price of Japanese bank stocks relative to other Japanese equities may be drastic and hopefully short-lived. It will also be key to monitor how Japanese bank spreads and net interest margin (NIM) react in the coming quarters with the gradual drift upwards in deposit rates.

JP Morgan Includes India Bonds in Emerging Market Index

Shifting away from developed markets, there has been a significant development in the emerging market bond space. On June 28 2024, Indian Government Bonds (IGB) were included in the JP Morgan Emerging Markets Bond Index (EMBI). This move could see a flood of foreign capital inflow into India’s tightly regulated sovereign debt market. The IGBs will begin to be included in the index, with just a 1% weight initially though this proportion will increase by one percentage point each month until it reaches a cap of 10 percent by March 31, 2025.

Many have hailed the inclusion as a huge step in liberalizing India’s capital markets and even a prelude to India bonds being included in larger global bond indices such as FTSE Russell’s World Government Bond Index or Bloomberg’s Global Aggregate Index. It is hoped that the foreign inflows will help reduce the government’s dependence on domestic investors and lower interest rates in the nation. Others have also cautioned that this move could act as a double-edged sword increasing volatility in interest rates and the Indian Rupee which will now be subject to more hot capital inflows and outflows.

Interestingly we note that for the month of July, EMBI returned 2.7% which slightly outperformed its Bloomberg emerging market index counterpart as tracked above which only returned 2.41%. It will be interesting to observe in the coming months if exposure to India bonds results in sustained outperformance for the EMBIG CORE index over other emerging market indices.

 

[1]The Sahm Rule indicates that the economy is in a recession when the three-month moving average of the national unemployment rate exceeds the lowest three-month moving average unemployment rate from the previous 12 months by half a percentage point or more (Source: economictimes.com)

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With effect from 1st July 2014, this Personal Data Protection Notice (the “Notice”) forms part of the terms and conditions of our products and services (the “Terms and Conditions”) governing your relationship (“you”, “your”, “yours” referred to herein include joint-account holders and beneficiary holders of an entity who are a natural person) with Phillip Capital Management (S) Ltd and its related corporations (collectively referred to herein as “PCM”, “us”, “we” or “our”). Without prejudice to the existing terms and conditions of any contractual agreement entered into between PCM and you (the “Existing Terms and Conditions”), which remain in full force and effect, this Notice shall be read in conjunction with the Existing Terms and Conditions. In the event of any conflict or inconsistency between the provisions of this Notice and those of the Existing Terms and Conditions, the provisions of this Notice shall prevail.

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The contents of this website are provided to you for general information only and should not be used as a recommendation or basis for making any specific investment, business or commercial decision. These pages should not be construed as a recommendation, an offer or solicitation for the subscription, purchase or sale of the securities, and specifically funds or any investment products, mentioned herein, or, in any jurisdiction to any person to whom it is unlawful to make such an invitation or solicitation in such jurisdiction. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of you acting based on this information. Unit trusts distributed by Phillip Securities Pte Ltd are not obligations of, deposits in, or guaranteed by, Phillip Securities Pte Ltd or any of its affiliates. All applications for units in a unit trust must be made on application forms accompanying the relevant prospectus. You should read the prospectus before deciding to subscribe for units in the respective fund. A copy of the prospectus can be obtained from Phillip Securities Pte Ltd or online at www.poems.com.sg/unittrust.

Investments are subject to investment risks including the possible loss of the principal amount invested. The value of the units in any fund and the income from them may fall as well as rise. If the investment is denominated in a foreign currency, factors including but not limited to changes in exchange rates may have an adverse effect on the value, price or income of an investment. Past performance figures as well as any projection or forecast used in these web pages, are not necessarily indicative of future or likely performance of any investment products.

The information contained in these pages is not intended to provide professional advice and should not be relied upon in that regard. It also does not have any regard to your specific investment objective, financial situation and any of your particular needs. You may wish to obtain advice from a qualified financial adviser, pursuant to a separate engagement, before making a commitment to purchase any of the investment products mentioned herein. In the event that you choose not to obtain advice from a qualified financial adviser, you should assess and consider whether the investment product is suitable for you before proceeding to invest and we do not offer any advice in this regard unless mandated to do so by way of a separate engagement.

You are advised to read the Applicable Conditions governing each account and the relevant Risk Disclosure Statement, if any, carefully before investing in any of our products. The contents of this website, including these terms and conditions, are subject to change and may be modified, deleted or replaced from time to time and at any time at the sole and absolute discretion of PhillipCapital.

Timeliness, accuracy and completeness of information

In particular, we assume no responsibility for or make any representations, endorsements, or warranties whatsoever in relation to the timeliness, accuracy and completeness of any services, content, information and/or data contained in the Website, whether provided by us, any content providers or third parties.

Copyright

PhillipCapital and/or its member companies reserve all copyright and intellectual property rights to the services, content, information and data on the Website. The contents in the Website are protected by copyright and no part or parts hereof may be modified, reproduced, stored in a retrieval system, transmitted (in any form or by any means), copied, distributed, published, displayed, broadcasted, hyperlinked, used for creating derivative works or used in any other way for commercial or public purposes without the prior written consent of PhillipCapital and/or its member companies.

No Warranties

While every care has been taken in preparing the contents contained in the Website, such contents are provided to you “as is” and “as available” without warranty of any kind either express or implied. In particular, no warranty regarding non-infringement, security, accuracy, fitness for a particular purpose or freedom from computer virus is given in conjunction with such contents. Member companies of PhillipCapital, their directors, officers, associates, agents and affiliates make no representations, endorsements or warranties of any kind about the services, content, information and/or data contained in the Website.

Separate Contracts

The provision of any service or products provided by PhillipCapital and/or its member companies through the Website shall be expressly subject to the particular terms and conditions as contained in the contract for the supply of such service or product. Any warranties or representations made in relation to the provision of such service or product are as made in the contract only and PhillipCapital and/or its member companies make no separate warranty or representation through the Website or through these general terms of use.

Exclusion of Liability and Indemnity

In no event shall PhillipCapital and/or its member companies be liable to you for any loss, damage, costs, charges and/or expenses of whatsoever nature and howsoever arising including legal fees on a full indemnity basis, cost of funding and loss or cost incurred by you as a result of or in connection with:

  1. any access, use or the inability to access or use this website, use of or reliance on the contents of this website;
  2. any transaction performed on any web page in the Website;
  3. any loss or abuse or unauthorized disclosure of information, including customer information;
  4. any system, server or connection failure, error, omission, interruption, interception, delay in operation or transmission, or computer virus;
  5. any use of or access to any websites linked to the Website;
  6. any service, product, information, data, software or other materials obtained from this Website or from any other websites linked to this Website;
  7. breach or violation of any third party rights, including but not limited to the violation of any proprietary or intellectual property rights or the enforcement of any of these general terms of use.

Governing Law

These general terms of use shall be governed by and construed in accordance with the laws of the Republic of Singapore and all parties hereby agree to submit to the exclusive jurisdiction of the courts of the Republic of Singapore.

Products and services referred to in this website are offered only in jurisdictions where and when they may be lawfully offered by PhillipCapital and/or its member companies. The contents in the Website are not intended for use by persons located in or resident in jurisdictions that restrict the distribution of such materials by us. Persons accessing these pages are required to inform themselves about and observe any relevant restrictions. The terms and conditions governing the use of the Website of each member company of PhillipCapital may differ and you should consult and carefully read the applicable terms and conditions before using the website.

Privacy and Security

  1. Our CommitmentWe believe in protecting your privacy. We ask that you read this privacy policy carefully as it contains important information about what to expect when we collect personal data about you and how we will use your personal data.
  2. Types Of Personal DataGenerally, we collect personal data that is linked to an individual. For example, an individual’s name, address, phone number and email address. This is not an exhaustive list and we may collect other types of personal data from you.

    Apart from personal data, we may collect other types of information which is not linked to an individual and which is anonymous. For example, the number of website visitors and the number of website users using a particular service. In this way, we hope to improve our customer services.

  3. Purpose For Collection, Processing And Disclosure Of Personal DataCollectionGenerally, personal data is collected for the following purposes: providing a service and / or a product to you; and legal compliance on our part under applicable laws.

    Processing and disclosureWe may process and disclose personal data with and to group companies or business partners or third party service providers, for the purposes stated above.
    In addition, there may be circumstances under applicable laws where we are permitted to collect, process and disclose personal data without your consent. You may obtain more information by contacting us (Please see contact details on our website under “Contact Us” tab).

  4. Transfer Of Personal Data OverseasTo the extent that we may need to transfer personal data outside of Singapore, whether to our group companies or business partners or third party service providers or simply to data storage facilities, we shall do so in accordance with the Personal Data Protection Act, 2012 (“PDPA”) to ensure that we provide a standard of protection to personal data so transferred that is comparable to the protection under the PDPA.
  5. ConsentGenerally, when we request for personal data in the course of providing you a service and/or product and you provide use with such personal data, there is implied consent that you agree to provide us with personal data in order for us to provide you with the requested service and / or product.
    In some circumstances and as required by applicable laws, we will seek your express consent when collecting your personal data. For example, where there are new purposes for the use of your personal data, we will seek your fresh consent.
    In addition, you are able to withdraw your consent at any time by contacting us (please see contact details on our website under the ‘Contact Us’ tab).
  6. Situations Not Requiring ConsentWe will not sell, rent or otherwise disclose your personal data to any third party, without your consent except in the following circumstances:
    we may share non-personal, non-individual information in aggregate form with third parties for business purposes, for example with advertisers on our website or we may tell our business partners the number of customers in certain demographic groups who purchased certain products or who carried out certain transactions; and / or as permitted under the laws of Singapore.
  7. Access And CorrectionYou are entitled to certain access and correction rights to your personal data. We may charge a reasonable administrative fee for this service. In exceptional circumstances, we reserve the right to deny you access to your personal data and may provide an explanation as required by applicable laws.
  8. RetentionPersonal data will be held for as long as it is necessary to fulfil the purpose for which it was collected, or as required or permitted by applicable laws. We shall cease to retain personal data, or remove the means by which the personal data can be associated with particular individuals, as soon as it is reasonable to assume that the purpose for which that personal data was collected is no longer being served by retention of the personal data and retention is no longer necessary for legal or business purposes.
  9. AccuracyIn order to ensure that your personal data is current, complete and accurate, please update us of any changes to your personal data by contacting us (please see contact details on our website under the ‘Contact Us’ tab) or by logging on to your user account if you are a registered user on our website.
  10. Data SecuritySecurity is our top priority. PhillipCapital and/or its member companies will strive at all times to ensure that your personal data will be protected against unauthorized or accidental access, processing or erasure. We maintain this commitment to data security by implementing appropriate physical, electronic and managerial measures to safeguard and secure your personal data. You are advised to go directly to the domain name of PhillipCapital www.phillip.com.sg or www.poems.com.sg when logging onto POEMS website. You should not accept links or redirections from other websites or media for the purpose of logging onto the POEMS website.
    • The secure area of our website supports the use of Secure SocketLayer (SSL) protocol and 128-encryption technology – an industry standard for encryption over the Internet to protect data. When you provide sensitive information, it will be automatically converted into codes before being securely dispatched over the Internet.
    • The secure area of our website supports the use of Secure SocketLayer (SSL) protocol and 128-encryption technology – an industry standard for encryption over the Internet to protect data. When you provide sensitive information, it will be automatically converted into codes before being securely dispatched over the Internet.
    • Only your valid User ID and Password, which identify you uniquely, will allow you to log in to our secure website(s). This ensures that messages from authorized users only are admitted into our secure site(s).
    • All practical steps will be taken to ensure that personal data will not be kept longer than necessary and that PhillipCapital will comply with all statutory and regulatory requirements in Singapore concerning the retention of personally identifiable information.
  11. Security AssuranceWe endeavour to put in place high standards of security to protect your interests. You are responsible to ensure that your User ID and/or Password are not compromised by knowingly or accidentally sharing, providing or facilitating unauthorized use of it. Failure to do so exposes you to the risks of fraud and loss. PhillipCapital and/or its member companies will not be responsible for losses suffered by customers as a result of:

    a. input errors or misuse of its internet services;
    b. negligent handling or sharing of Password;
    c. leaving a computer unattended during an online session;
    d. failure to immediately report known accidents of unauthorized account access.Member companies of PhillipCapital will never ask you for your Password. In order to ensure that you are the only person who knows this information:

    • You should safeguard your unique User ID and Password by keeping it secret and confidential. Do not share your User ID and Password with anyone or write them down, as you are responsible for all transactions undertaken with your User ID and Password.
    • Ensure that no one can see your Password when you log in to our system.
    • When choosing your Password, do not create it using easily identifiable information such as your birthday, telephone number, a recognizable part of your name, spouse’s name, dictionary words, common character sequences such as “123456”, licence plate number, passport number, social security number. The user-chosen password must have at least six (6) characters and are best recommended to be alphanumeric.
    • Change your Password regularly. Do not recycle your recently used Password.
    • The same Password should not be used for different websites, applications or services particularly when you relate to different entities.
    • Do not select the option on your browser for storing or retaining User ID and Password.
    • If you think your User ID and/or password has been disclosed to a third party, is lost or stolen and unauthorized transactions may have been conducted, you are responsible to inform us immediately.
    • You should log out of your online trading session when you have completed your online trading transactions or when you need to walk away from your computer even for just a while. Do not leave your computer unattended while online trading transactions are being processed.
  12. Security Measures To Prevent Keystrokes Being CapturedIt is advisable to take the necessary precautions to protect your personal computer against viruses and other malicious programs. Besides damaging and/or destroying data, viruses and malicious programs can capture your Password keystrokes and other personal information and send them to another person without your consent. Some precautions to take:
    • Ensure that you install an effective personal firewall, anti-virus, anti-spyware as well as anti-Trojan horse software. These should be updated regularly.
    • Do not download any software from a website that is of doubtful origin.
    • Do not open any email or attachment that is from a source unknown to you. When in doubt, delete such email without opening it.
  13. Alert on PhishingThere have been fraud cases connected with the scam known as ‘phishing’. The scam makes use of unsolicited emails and/or fraudulent websites to trick people into disclosing confidential personal details such as user-names and passwords. You are advised to stay alert to avoid falling prey to the following scam techniques used by fraudsters:
    • Use of false email addresses, logos and graphics to mislead people into accepting the validity of emails and websites;
    • Faking domain names to appear as if they represent the actual companies;
    • Duping people into providing personal details through one or more methods such as hyperlinks to fake websites or embedded forms in emails.
  14. Clearing Your CacheWe strongly advise that you clear your browser’s disk cache after each online trading session.
    Cache files on a computer can retain images of data sent or received over the Internet, making them a potential target for a system intruder.
  15. Updates To Privacy PolicyWe keep our privacy policy under regular review. If we change our privacy policy, we will post the changes on this website, so that you may be aware of the information we collect and how we use it. Such changes to our privacy policy shall apply from the time that we post the same on this website. Your continued use of our website will be taken as acceptance of the updated privacy policy, but we will seek your fresh consent before we collect more personal data from you or we wish to use or disclose your personal data for new purposes.
  16. CookiesA cookie is an alphanumeric identifier which we transfer to your hard drive through your web browser when you visit our website. It enables our own system to recognise you when you visit our website again and improve our service to you. The information is used to track visitor use of the website and to compile statistical reports on website activity. For further information about cookies visit www.aboutcookies.org or www.allaboutcookies.org. Cookies may also be used to compile aggregate information about areas of our websites that are visited most frequently. This traffic information can be used to enhance the content of our website and make your use of it easier. If you wish to reject our cookie, you can configure your browser to do so. However, in a few cases some of our website features may not function if you remove cookies from your browser.
  17. Hyperlinks from PhillipCapital to Third Party WebsitesPhillipCapital and/or its member companies are not responsible for the contents available on or the set-up of any other websites linked to our websites. These hyperlinks lead to websites published or operated by third parties who are not affiliated with or in any way related to PhillipCapital and/or its member companies. Access to and use of such other websites is at the user’s own risk and subject to any terms and conditions applicable to such access/use.
    By providing hyperlinks to a third party website or webpage, PhillipCapital and/or its member companies shall not be deemed to endorse, recommend, approve, guarantee or introduce any third parties or the services/products they provide on their websites, or to have any form of cooperation with such third parties and websites unless otherwise stated by PhillipCapital and/or its member companies.
    We are not in any way responsible for the content of any third party website or webpage. PhillipCapital and/or its member companies is/are not a party/parties to any contractual arrangements entered into between you and the provider of the third party website unless otherwise expressly specified or agreed to by PhillipCapital and/or its member companies.
    Any links to websites that contain downloadable software are provided for your convenience only. We are not responsible for any difficulties you may encounter in downloading the software or for any consequences from your doing so. Please remember that the use of any software downloaded from the Internet may be governed by a licence agreement and your failure to observe the terms of such licence agreement may result in an infringement of intellectual property rights of the relevant software provider, which we are not in any way responsible.
  18. Hyperlinks from Third Party Websites to PhillipCapitalYou must always obtain the prior written approval of PhillipCapital and/or its member companies before creating a hyperlink in any form from a third party website to any PhillipCapital website or webpage. PhillipCapital and/or its member companies may or may not give such approval at its absolute discretion.
    PhillipCapital and/or its member companies is/are not responsible for the setup of any hyperlink from a third party website to any PhillipCapital website or webpage. Any links so set up shall not constitute any form of co-operation with, or endorsement by, PhillipCapital and/or its member companies of such third party website. Any link to our Website shall always be an active and direct link to our Website and no “framing” or “deep-linking” of our web page or content is allowed, unless prior approval by PhillipCapital.
    PhillipCapital and its member companies are not liable for any loss or damage incurred or suffered by you or any third party arising out of or in connection with such link. PhillipCapital and/or its member companies reserve the right to rescind any approval granted to link through a plain-text link or any other type of link, and to require the removal of any such link to any PhillipCapital websites, at our discretion at any time.
  19. EmailEmail messages sent to PhillipCapital or any of its member companies over the Internet cannot be guaranteed to be completely secure. PhillipCapital will not be responsible for any damages incurred by users if they send a message to PhillipCapital or any of its member companies, or if PhillipCapital or any of its member companies sends a message to them at their request, over the Internet. PhillipCapital or any of its member companies are not responsible in any manner for direct, indirect, special or consequential damages arising out of the use of this Website. If you encounter any suspicious email, passing off as an email from POEMS or Phillip, please notify us immediately at (65) 65311555.
  20. Transmission Over The InternetDue to the nature of the Internet, transactions may be subject to interruption, interception, transmission blackout, delayed transmission and incorrect data transmission. Regardless of any security measures taken by us, PhillipCapital and/or its member companies shall assume no responsibility whatsoever for any loss or expense resulting from such delays, interruptions and/or interceptions.
  21. DownloadingWe do not represent or warrant that this website will be available and meet your requirements, that access will not be interrupted, that there will be no delays, failures, errors or omissions or loss of transmitted information, that no viruses or other contaminating or destructive properties will be transmitted or that no damage will occur to your computer system.
    You have sole responsibility for adequate protection and back up of data and/or equipment and for undertaking reasonable and appropriate precautions to scan for computer viruses or other destructive properties. We make no representations or warranties regarding the accuracy, functionality or performance of any third party software that may be used in connection with the website.
  22. English Version to PrevailIf there are inconsistencies in meaning between the English version of these terms and conditions and the terms and conditions as may be translated into any other language, the English version shall prevail.
  23. Prevailing TermsIf you have agreed to our terms and conditions of account opening, as the case may be, in the event of inconsistency between such terms and conditions and this privacy policy, such terms and conditions of account opening shall prevail.
  24. Governing LawNote that as we are a Singapore registered company, this privacy policy has been drafted solely in accordance with the laws of Singapore. We do not represent or warrant that this privacy policy complies with the privacy laws of any other jurisdiction and accordingly, you shall not construe this privacy policy as such.
  25. Contact UsIf you any comments or questions about this privacy policy, please contact the Data Protection Officer in writing (please see contact details on our website under the ‘Contact Us’ tab) referencing ‘Privacy and Security’.
  26. DisclaimerOur website may contain links to other websites. Please note that we are not responsible for the privacy practices of such other websites and advise you to read the privacy statements of each website you visit which collects personal data.
  27. IMPORTANT:By accessing this website and any of its pages you are agreeing to the terms set out above.