Smartkarma 101s Archives

Jul 29

Understanding the Hang Seng Index: A Comprehensive Guide by Smartkarma

The Hang Seng Index, commonly referred to as the HSI, is a pivotal financial indicator that serves as a compass for navigating the complex waters of the Hong Kong stock market. Introduced by the Hang Seng Bank on November 24, 1969, this index captures the performance of the largest and most actively traded companies listed on the Hong Kong Stock Exchange (HKEX). By encompassing a diverse array of businesses, the HSI provides a snapshot of the market’s overall health and direction, making it an indispensable tool for investors and analysts alike.

Importance of the HSI as a Market Indicator

Amidst the ever-changing economic landscape, understanding the pulse of the Hong Kong stock market is crucial for investors seeking opportunities and gauging market sentiment. The Hang Seng Index holds significant importance as it acts as a reliable barometer of the region’s economic health and the collective performance of its constituent stocks. Fluctuations in the HSI can signal shifts in investor sentiment, economic trends, and overall market conditions, making it a key reference point for financial decision-making on both local and global levels.

Smartkarma: A Leading Platform for Asian Market Research

Smartkarma provides unrivaled research on Asian markets, including the HSI. Smartkarma’s mission is to empower investors with unbiased and expert insights, enabling them to make informed decisions amidst the complexities of the financial world. With a team of exceptional analysts, Smartkarma’s contributions to understanding the Hang Seng Index are invaluable, enriching the scope of this guide and enhancing readers’ knowledge.

In the following sections, we will delve deeper into the intricacies of the Hang Seng Index, explore its constituents, understand its significance, and embrace Smartkarma’s research expertise to navigate the dynamic landscape of the Hong Kong stock market. Let us embark on this enlightening journey together, uncovering the nuances of the HSI and the opportunities it presents with Smartkarma as our guiding light.

Related Insights

Explore latest Investment Insights on the Hang Seng Index on Smartkarma

Explore Now

What Does the Hang Seng Index Measure?

Explanation of the HSI’s Purpose and Function

At its core, the Hang Seng Index (HSI) serves as a vital gauge of the Hong Kong stock market’s performance. Representing a diverse spectrum of industries and companies, the HSI’s primary objective is to provide investors, analysts, and economists with a comprehensive overview of the market’s health and direction. As one of the most widely recognized indices in the Asia-Pacific region, the HSI plays a pivotal role in shaping investment decisions and understanding the dynamics of the Hong Kong stock exchange.

How the HSI Reflects the Performance of Hong Kong’s Stock Market

The HSI is a market capitalization-weighted index, meaning that companies with higher market values have a more significant impact on the index’s movement. As the constituent stocks experience changes in price, trading volume, and market capitalization, the HSI fluctuates accordingly. Consequently, the index serves as a mirror, reflecting the collective sentiment and performance of the Hong Kong stock market at any given time.

Analysis and Research on the Constituent Stocks of the HSI

Smartkarma’s presence in the financial landscape amplifies the understanding of the HSI’s constituent stocks. Through the expertise of its renowned analysts, Smartkarma delivers detailed and independent research on the individual companies that constitute the HSI. Their deep dives into financials, industry trends, and company performance help investors gain valuable insights, enabling them to make well-informed decisions in their investment endeavors.

Notable Analysts

Notable analysts like Brian Freitas, Douglas Kim, and David Blennerhassett bring years of experience and valuable perspectives to the table. Their contributions enhance the depth of knowledge available to investors, ensuring a comprehensive understanding of the constituent stocks’ potential and risks.

With Smartkarma’s wealth of analysis and a diverse range of expert analysts, investors can confidently explore the nuances of the Hang Seng Index, unlocking opportunities in one of the world’s most vibrant financial markets.

The Importance of the Hang Seng Index

The Significance of the HSI in the Global Financial Landscape

As one of the most prominent indices in the Asia-Pacific region, the Hang Seng Index (HSI) holds immense significance in the global financial landscape. Hong Kong’s position as a major international financial hub makes the HSI a focal point for investors and institutions worldwide. The index’s movements are closely monitored by market participants, economists, and policymakers, offering valuable insights into the economic health and investor sentiment not only in Hong Kong but also in the broader Asian markets.

How the HSI Influences Investment Decisions and Market Trends

The HSI’s influence extends beyond its symbolic representation of the Hong Kong stock market. As a market capitalization-weighted index, the HSI’s performance can sway investor confidence and trigger trends in various sectors. Fluctuations in the index can prompt reactions in trading strategies, capital allocation, and asset allocation decisions, affecting investment flows not just within Hong Kong but also across regional and global markets.

Moreover, the HSI serves as a bellwether for broader market sentiment, reflecting changing economic conditions and geopolitical developments. Investors often rely on the HSI’s performance as a leading indicator for potential market shifts, making it a crucial reference point for formulating investment strategies.

Independent Research on the HSI

In the intricate world of financial markets, unbiased and independent research is paramount for making well-informed decisions. The contributions of independent analysts play a crucial role in offering unique perspectives on the index’s performance, individual constituent stocks, and underlying market dynamics.

Figures like Travis Lundy and Sumeet Singh possess deep knowledge of the Asian markets and bring multifaceted insights to the HSI’s analysis. Their independent viewpoints and in-depth research contribute to a comprehensive understanding of the index, empowering investors to make well-grounded decisions amid market complexities.

As the HSI continues to hold its position as a leading market indicator, the role of Smartkarma and its analysts becomes increasingly instrumental in equipping market participants with the intelligence needed to navigate the intricacies of the Hong Kong stock market and seize the opportunities it presents.

Top Holdings in the Hang Seng Index

Overview of the Diversified Industries Represented in the HSI

The Hang Seng Index (HSI) is a true reflection of the vibrant and diverse economy of Hong Kong. As we delve into the top holdings within the index, it becomes evident that it encompasses a wide range of industries, representing the various sectors that drive the region’s economic growth. From finance and real estate to technology, retail, and energy, the HSI offers investors exposure to a comprehensive cross-section of Hong Kong’s business landscape.

Research on Top Holdings and Their Impact on the Index Performance

Independent analysts on Smartkarma conduct in-depth studies on the revenue drivers, competitive advantages, and potential risks associated with each top holding. This analysis not only provides investors with a detailed view of individual companies but also sheds light on the broader implications of these holdings on the HSI’s movements.

Hang Seng Index – Top 30 Holdings
At close: July 28 04:08PM HKT

Symbol	Company Name	Last Price	Change	% Change	Volume
1038.HK	CK Infrastructure Holdings Limited	41.45	0	0.00%	843,510
0027.HK	Galaxy Entertainment Group Limited	56.7	0.05	0.0009	5,491,722
1044.HK	Hengan International Group Company Limited	31.5	-0.05	-0.16%	1,193,000
0003.HK	The Hong Kong and China Gas Company Limited	6.68	0.02	0.003	9,884,597
0883.HK	CNOOC Limited	12.42	0.04	0.0032	64,133,217
9988.HK	Alibaba Group Holding Limited	95.9	0.45	0.0047	46,062,057
0101.HK	Hang Lung Properties Limited	11.98	0.06	0.005	4,204,792
0017.HK	New World Development Company Limited	19.34	-0.1	-0.51%	3,796,638
0669.HK	Techtronic Industries Company Limited	87.95	0.5	0.0057	2,778,004
2688.HK	ENN Energy Holdings Limited	90.3	0.55	0.0061	1,132,600
1209.HK	China Resources Mixc Lifestyle Services Limited	38.85	-0.35	-0.89%	3,421,583
6098.HK	Country Garden Services Holdings Company Limited	9.55	0.09	0.0095	90,322,956
1398.HK	Industrial and Commercial Bank of China Limited	3.74	0.04	0.0108	231,213,125
9633.HK	Nongfu Spring Co., Ltd.	44.75	0.5	0.0113	4,254,400
1810.HK	Xiaomi Corporation	12.18	0.14	0.0116	101,554,772
0002.HK	CLP Holdings Limited	63.5	0.75	0.012	2,743,409
0012.HK	Henderson Land Development Company Limited	24.2	0.3	0.0126	2,123,065
0267.HK	CITIC Limited	8.66	0.11	0.0129	11,922,600
9618.HK	JD.com, Inc.	153.4	2.1	0.0139	8,283,419
1093.HK	CSPC Pharmaceutical Group Limited	6.55	0.09	0.0139	37,389,200
1109.HK	China Resources Land Limited	36.45	0.75	0.021	16,312,799
2020.HK	ANTA Sports Products Limited	89.85	2.35	0.0269	9,556,824
6690.HK	Haier Smart Home Co., Ltd.	24.9	0.7	0.0289	11,833,251
2319.HK	China Mengniu Dairy Company Limited	29	0.85	0.0302	13,702,421
0241.HK	Alibaba Health Information Technology Limited	5.57	0.17	0.0315	44,616,049
2269.HK	WuXi Biologics (Cayman) Inc.	43.3	1.4	0.0334	17,659,975
3690.HK	Meituan	142.4	5.8	0.0425	40,948,029
2628.HK	China Life Insurance Company Limited	13.48	0.8	0.0631	88,793,333
2331.HK	Li Ning Company Limited	46.1	3	0.0696	37,241,221
0992.HK	Lenovo Group Limited	8.8	0.63	0.0771	76,471,211

Notable Analysts Covering Top Holdings

Smartkarma’s ecosystem thrives on the expertise and dedication of its distinguished analysts. Within the realm of top holdings in the HSI, Smartkarma is fortified by the insights of exceptional analysts such as Oshadhi Kumarasiri, Osbert Tang, CFA, and Xinyao (Criss) Wang. Their extensive knowledge and research acumen enable investors to make well-informed decisions, positioning them advantageously within the dynamic landscape of the Hang Seng Index.

The comprehensive research conducted by these notable Smartkarma analysts brings to light the nuanced factors that impact the top holdings’ performance, equipping investors with the intelligence they need to navigate the intricacies of these influential companies.

In the next section, we will explore trading strategies within the Hang Seng Index, delving into market dynamics and Smartkarma’s contributions to empowering investors seeking opportunities within this dynamic market.

Trading the Hang Seng Index

Exploring Investment Opportunities in the HSI

The Hang Seng Index (HSI) presents a vast array of investment opportunities within one of Asia’s most dynamic financial markets. As investors seek to capitalize on the index’s movements and constituent stocks, understanding the intricacies of trading in the HSI becomes paramount. Whether investors are looking for short-term gains or long-term growth, the HSI offers a fertile ground for those willing to navigate its ebbs and flows with strategic acumen.

Insights on Trading Strategies and Market Sentiment

Smartkarma’s platform offers real-time insights and data, empowering traders with the intelligence needed to identify potential entry and exit points, gauge market sentiment, and implement effective trading strategies. By combining technical analysis, market trends, and industry outlooks, Smartkarma equips traders with a comprehensive toolkit to navigate the ever-changing landscape of the Hang Seng Index.

Among these notable analysts are Arun George, Janaghan Jeyakumar, CFA, and Ke Yan, CFA, FRM. Their research contributions are invaluable, offering traders a well-rounded understanding of market dynamics and equipping them with the knowledge to make timely and informed trading decisions.

By presenting in-depth reports, thematic insights, and market outlooks, Smartkarma empowers investors to make well-informed decisions in the face of uncertainty.

The platform’s user-friendly interface and real-time collaboration features enable investors to engage directly with analysts, fostering a unique and interactive research experience. This open and transparent approach to research empowers investors to understand the factors driving the Hang Seng Index, enabling them to seize opportunities, mitigate risks, and optimize their investment strategies.

In the concluding section, we will recapitulate the importance of the Hang Seng Index and Smartkarma’s instrumental role in providing valuable research, enabling readers to navigate the intricacies of the Hong Kong stock market with confidence.

Conclusion

As we come to the culmination of this comprehensive guide, we reflect on the significance of the Hang Seng Index (HSI) and the invaluable role played by Smartkarma in empowering investors on their journey to success in the dynamic landscape of Asian markets.

Recapitulation of the Importance of the Hang Seng Index in the Investment Landscape

The Hang Seng Index remains a lighthouse, guiding investors through the ebbs and flows of the Hong Kong stock market and serving as a crucial indicator of the region’s economic health. As one of the most prominent indices in the Asia-Pacific region, the HSI’s movements carry far-reaching implications, influencing investment decisions, market trends, and investor sentiment. Understanding the HSI is not merely a financial pursuit but a key to unlocking the opportunities and challenges that Asian markets present to global investors.

As investors continue to navigate the complexities of the Hang Seng Index and the broader Asian markets, we extend an encouraging hand to leverage the power of independent analysts.

Jun 27

The Best Retail Broker for Asia

By Featured Content | Featured, Smartkarma 101s

This article was originally published on Asia Century Stocks by Michael Fritzell and is being republished here with the author’s express permission. This article constitutes the author’s personal views only and is for entertainment purposes only. It is not to be construed as financial advice in any shape or form. Please do your own research and seek your own advice from a qualified financial advisor. This is a disclosure – not recommendations to choose either brokerage service over another.

Summary

Earlier this year, I asked followers on Twitter whether they had trading access to Southeast Asian markets. 75% answered that they don’t.

So I thought I should help you identify brokers with the best access to these markets.

Here is my conclusion:

If you’re looking for an online trading platform with access to most Asian markets, then I believe that Boom Securities is the best option for you.
If you don’t mind trading over the phone and are looking for a Singapore-based broker with great market access, then I believe that either KGI Securities or Maybank will do the trick.

Just be aware that the transaction costs in Southeast Asian markets are high. For that reason, I recommend investing for the very long term only. Or at least make sure that the upside in each stock can justify the costs involved in purchasing it.

Who is eligible for Asian brokerage accounts?

Most brokers I have reviewed enable foreigners to open accounts with them. The only exception is if you’re a US citizen because the US SEC prohibits financial institutions that are not registered and regulated in the US from soliciting US clients. Americans will only be able to open accounts with brokers that already have a presence in the US.

Here are the major Asian brokers that accept Americans and non-Americans as customers:

Some brokers only accept those 21 years and older, including KGI Securities and OCBC Securities. So if you’re between 18 and 21 years old, you will have to exclude these from your shortlist.

Some brokers have additional requirements on minimum deposits, including OCBC Securities, Saxo and Phillip Securities. But I don’t think that should be a major hurdle for you.

Market access

Here is the market access offered by the major brokerage companies in Asia.

Click on the picture to see a zoom-able version of the table. “Online”: the company offers an online trading platform. “Phone”: to put in an order, you will have to pick up the phone and call them.

Interactive Brokers is a popular option for retail investors, but unfortunately, it only offers access to Hong Kong, Japan, Singapore and India (with some restrictions). For Southeast Asian markets and Korea / Taiwan, you will need another broker.

Here are the brokers that offer the best access to these other countries:

Best market access:

The online trading platform that offers the access to the most Asian markets is Boom (Monex), with the only two exceptions being Vietnam and India.

Decent market access:

For Southeast Asian markets, OCBC Securities, Philip Securities, Lim & Tan’s online trading platforms offer decent access. Note that in Lim & Tan’s case, however, you will have to open separate trading accounts for Malaysia, Hong Kong and Singapore. CIMB’s access is not bad, but they do not offer access to the Philippines.

Trading over the phone:

If you’re fine with broker-assisted trading (over the phone / messages), then KGI Securities, Maybank and DBS Vickers could be options worth exploring.

To summarise: for HK, Japan, Singapore, you’ll be fine with Interactive Brokers and Saxo. For the Philippines, you can choose any of the Singaporean or Malaysian brokers or Boom except CIMB. For Korea / Taiwan, you can trade with any broker except UOB, DBS and CIMB. Just know that you’ll probably have to trade over the phone.

Commission rates

Here are the trading commissions for the major Asian brokerage companies.

Click on the picture to see a zoom-able version of the table. Fees for every transaction, so if you want to buy and sell prepare to pay twice as much.

Best commission rates:

Interactive Brokers’ commissions are probably the best in the entire industry with commission rates below 20bps. However, IBKR does not offer access to Southeast Asian emerging markets and not to Korea or Taiwan either. Almost the same for Saxo, also offers decent commision rates for developed markets but among Southeast Asian markets it only offers access to Malaysia (subject to further documentation).

The second tier:

Boom Securities (Monex), CGS-CIMB, Maybank, KGI Securities, OCBC Securities and Philip Securities offer commission rates of around 20-60bps.

The worst:

DBS Vickers and Lim & Tan charge closer to 1.0% in commission for each trade.

Note that these fees are per transaction, so for a buy-and-sell round-trip, expect at least double the fees. If you trade a lot, the fees will add up.

FX conversion rates

When a broker offers access to a local market but does not handle the local currency, the settlement will proceed in a base currency (e.g. SGD or USD), and an FX spread will then be added. These FX spreads can be very high.

Few brokers offer settlement in Southeast Asian currencies. KGI Securities does offer settlement in MYR, IDR, and I believe OCBC Securities does in MYR, IDR, PHP and THB, but the others do not. So as a customer of, say, KGI Securities, what you can do is pre-fund your account with your desired currency and then ask them to trade directly with that currency. A bit of a hassle as you’ll have to transfer money back and forth.

If your broker does not handle the local currency, prepare to pay up. The bid-ask spreads can be massive. I called up each of the brokers and asked them to provide indicative exchange rates.

The table below shows the bid-ask spread provided to me by their customer service reps: equivalent to what you would pay starting from USD or SGD, buy the local currency and then convert back again.

TBH: Thai Baht. MYR: Malaysian Ringgit. IDR = Indonesian Rupiah. PHP = Philippine Peso

Either way, you’ll have to pay 1-5% round-trip for Thai Baht, Malaysian Ringgit, Indonesian Rupiah and Philippine Peso. These are very high numbers indeed.

Boom Securities would not give me an exact quote, simply stating that they outsource the business to HSBC Hong Kong and that the spread will typically be 1-2% per transaction (times two for a round-trip conversion). Phillip Securities Hong Kong has indicative rates on its website, but who knows what exchange rate they will actually use when settling in non-local currencies. The Singaporean banks UOB, OCBC and DBS, offer inferior rates, in my view. The Malaysian banks Maybank and CIMB’s rates are just slightly better.

But either way, if you add up commission rates x2 plus the bid-ask spread, you’ll end up paying somewhere around 2-5% in total transaction fees for Southeast Asian markets. So make sure that the upside in whatever stock you want to trade justifies the cost of purchasing it.

Other fees

Other transaction fees tend to be modest and not worth taking into account:

Dividend handling fees are typically modest. 1% at UOB, DBS and Lim & Tan, 0.5% at KGI Securities and Boom. Many others such as CIMB, Boom and Phillip Securities charge US$3-5 for each dividend.
Custody charges tend to be somewhere around 0.1% for Taiwanese shares. At the Singaporean brokers, custody charges for foreign shares tend to be SG$24/year. The only company that stands out in terms of custody charges is KGI Securities’, which charges 0.68% for Singaporean stocks and 0.70% for Taiwanese stocks.
Boom charges an admin fee of ~US$25 per year. Lim & Tan charges a similar amount.

Customer reviews

Here are representative reviews for each of the brokers (most from broker research platform seedly.sg):

KGI Securities (n.a.): “Overall they are quite good… might need a separate account for Vietnam and Philippines.”
Boom / Monex (n.a.): “Load problem… the trades are executed fast… I love that they cover so many SE Asian countries… competitive fees except for that dividend charge which I hadn’t noticed.”
CGS-CIMB (4.4/5.0): “Customer service is great… the staff are polite and patient when answering my questions… platform was also good to use… take forever to open an account.”
Phillip Securities (4.2/5.0): “No frill and no platform fee… customer service is good and very helpful… [the user interface is] easy to understand and user friendly.”
Interactive Brokers (4.1/5.0): “Really low rates… cheapest broker out there if you intend to invest >100k… the problem is it looks confusing… but the app is good… not intuitive and hard for beginners to use.”
Lim & Tan (3.9/5.0): “Compared to new online brokers [the user experience] feels outdated and less intuitive… commission rates aren’t cheap… I find Lim and Tan’s website very user-unfriendly.”
Saxo (3.8/5.0): “User interface is very intuitive with plenty of features… the platform was easy to navigate, but customer support was horrible… don’t depend on Saxo if you need the funds to be withdrawn promptly.”
OCBC Securities (3.1/5.0): “Poor user interface on both web and mobile versions… old interface… customer service is average at best… not the cheapest commissions in the market, but I am assigned a dedicated trading rep who is responsive.”
Maybank Kim Eng (2.7/5.0): “Like their customer service… when you buy a share, the portfolio is showing incorrect info and sometimes it does not even show out the units that you bought… website is a bit old fashioned but workable enough.”
DBS Vickers (2.7/5.0): “Platform seems quite outdated and not user friendly… buying overseas stock can be expensive… the “live” streamed prices on the DBS Vickers website are not accurate.”
UOB Kay-Hian (2.2/5.0): “Bad experience using their services… charges high fees as well, compared to its competitors…. user interface looks very old and outdated… the platform is really archaic, as compared to Phillip and CIMB… they keep fulfilling partial orders to profit from transaction fees.”

In brief, no one can match Interactive Brokers in terms of fees and execution. But CIMB’s and Phillip Securities’ apps are decent. UOB / DBS / OCBC / Maybank seem to be lagging in this respect. I have a decent experience with Boom (Monex) and have heard good things about KGI Securities.

Investor protection

Interactive Brokers’ American accounts (both residents and non-residents) are covered by Securities Investor Protection Corporation (SIPC) insurance for up to US$500,000 for securities and cash (cash only: US$250,000).

Singapore broker accounts are only covered by deposit insurance and not for securities. So if your broker goes bankrupt and stocks are held in the broker’s name, then you may not be able to receive any financial compensation. If you own local shares in Singapore, SGX’s Fidelity Fund will pay compensation of up to SG$50,000. There is another way you can protect yourself: by opening a so-called Central Depository (CDP) account, your stocks will be held in custody with Singapore Exchange instead – a company that’s unlikely ever to go bankrupt.

Hong Kong does have SIPC insurance, but it only covers HK stocks and up to HK$150,000. That’s a very modest amount of money.

So with limited SIPC protection, I recommend sticking with brokers that have strong financial backers. These are the parent groups of the brokers I mentioned above:

Interactive Brokers: Interactive Brokers Group (IBKR US)
Boom: Monex Group (8698 JP)
Saxo: Zhejiang Geely Holding Group (private)
KGI Securities: China Development Financial Holding Corporation (2883 TW)
Phillip Securities: Philip Investment Corporation (private)
UOB Kay-Hian: UOB Group (UOB SP)
OCBC Securities: OCBC Bank (O39 SP)
Lim & Tan: Lim & Tan Securities (private)
Maybank Kim Eng: Malayan Banking (MAYBANK MK)
DBS Vickers: DBS Group (backed by the Singapore government)
CGS-CIMB: CIMB Bank (CIMB MK)

I feel comfortable with Interactive Brokers, Monex, China Development Financial (a Taiwanese company), UOB, OCBC, DBS, Maybank and CIMB. These are all major financial institutions.

Not putting all your eggs in one broker basket will also help.

Final ranking

Here is my final (subjective) ranking of the Asian brokers listed above. I exclude Interactive Brokers and Saxo since they do not offer sufficient market access to qualify as pan-Asian brokers.

Boom Securities: Great market access on one single online trading platform. The commission rates are competitive, but there is not much transparency around their FX conversion rates. Backed by Monex, which is a major Japanese financial institution. Americans are eligible to become customers. Based in Hong Kong.
KGI Securities: Great market access to all markets except Vietnam. Competitive commission rates. Southeast Asia trading is mostly done over the phone. Excellent customer service. Backed by a major Taiwanese financial institution with a market cap of US$7 billion. Americans are eligible to become customers. During COVID-19, they won’t accept new customers unless an existing customer can refer you to them. But I suspect that will change soon. KGI Securities is based in Singapore, which to me is a positive.
Maybank Kim Eng: Great market access, including to Vietnam. Okay commission rates, poor platform user interface. Backed by a major Malaysian bank. The FX rates they quoted me seemed somewhat better than those offered by the Singaporean banks. Not open to Americans.
CGS-CIMB: Decent commission rates, great app UI, access to most Asian markets except Philippines, Korea and Taiwan. Backed by major Malaysian bank CIMB. Americans are eligible to become customers.
Phillip Securities: Low commission rates. Decent app and customer service (allegedly). Access to all Asian markets, including Vietnam. Not backed by a major financial group. Unfortunately not open to Americans.
OCBC Securities: Great market access, but high fees for East Asian markets. The trading platform can be used for Southeast Asia. The user interface is allegedly not great. Responsive trading rep. Backed by a major financial institution. Americans are eligible to become customers.
UOB Kay-Hian: Poor user interface. Not much transparency with regards to fees. Mostly trading over the phone. Backed by a major Singaporean financial institution. Americans are eligible to become customers.
DBS Vickers: High fees for Southeast Asian emerging markets at close to 1%. Most trading is done over the phone. The upside is that it has implicit backing from the Singapore government via Temasek. Not open to Americans.
Lim & Tan: Very high commission rates at 70-100bps. A lot of the trading is done via the platform, but you will need separate accounts for Malaysia, Singapore, Hong Kong and the US. Not backed by a major financial institution. They appear to trade via Boom Securities, so why not use Boom directly? Americans are eligible to become customers.

Begin your investment journey with Smartkarma Plus

Institutional-Level Investment Insight, Now for private accredited investors

Smartkarma has levelled the playing field. We bring you institutional-level Insight that moves markets, at a price-point that matches your needs.

Smartkarma Plus Welcome Offer

Just $1.99 for your first month

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Feb 28

Raffles Medical Share Price: A Comprehensive Guide to Investing in One of Singapore’s Top Healthcare Stocks

By Smartkarma Content | Smartkarma 101s

Raffles Medical Group (RFMD SP, BSL.SI) is a healthcare company listed on the Singapore Exchange (SGX). The company provides a range of healthcare services, including primary care, specialist medical services, and hospital services. In this article, we will focus on Raffles Medical Share Price and provide an overview of the company’s financial performance, factors that affect its share price, its ownership structure, and its investment prospects. We will also highlight the independent research available on Smartkarma, a leading investment research platform where top independent analysts publish their research on companies such as Raffles Medical.

Raffles Medical Group’s Financial Performance

Raffles Medical Group’s financial performance has been relatively stable in recent years. In 2021, the company reported a revenue of SGD 546.9 million, up 1.2% from the previous year. However, the company’s net profit after tax decreased by 35.4% to SGD 41.9 million due to the impact of the COVID-19 pandemic. Raffles Medical’s earnings per share also decreased by 37.4% from SGD 4.02 in 2020 to SGD 2.52 in 2021.

Despite the challenging environment, Raffles Medical has continued to expand its services and facilities. The company opened a new medical centre in Raffles Place, Singapore, in 2021, which provides specialist medical services, general practice, and diagnostic imaging services. Raffles Medical has also announced plans to build a new hospital in Shanghai, China, which is expected to open in 2025.

Factors Affecting Raffles Medical Share Price

Raffles Medical’s share price is influenced by various factors, including the company’s financial performance, industry developments, and market trends. For example, Raffles Medical’s share price may increase if the company reports better-than-expected financial results or if there is positive news in the healthcare industry. Conversely, the company’s share price may decrease if it reports weak financial results or if there is negative news in the healthcare industry.

Over the past five years, Raffles Medical’s share price has fluctuated between SGD 0.92 and SGD 1.62. The share price has been relatively stable in recent months, with the stock trading at around SGD 1.00 to SGD 1.10.

Is Raffles Medical a Good Stock?

Raffles Medical has been a consistent performer in the healthcare industry in Singapore. The company’s strong brand recognition, diversified business lines, and strategic expansion plans are some of its strengths. However, Raffles Medical also faces competition from other healthcare companies, as well as regulatory risks and operational challenges.

Investors interested in Raffles Medical can benefit from the independent research available on Smartkarma. Top independent analysts, such as Geoff Howie, Jason Yap, CFA, Kemp Dolliver, CFA, Maybank Research, Shifara Samsudeen, ACMA, CGMA, Tina Banerjee, and Xinyao (Criss) Wang, have written great research on Raffles Medical on Smartkarma, providing valuable insights into the company’s financial performance, competitive landscape, and investment prospects.

Ownership of Raffles Medical Group

Raffles Medical is a private healthcare company, with no government ownership. The company’s major shareholders are the founders of Raffles Medical, Dr. Loo Choon Yong and Dr. Alfred Loh. As of 31 December 2021, Dr. Loo and Dr. Loh owned 29.82% and 29.49% of Raffles Medical’s shares, respectively.

Healthcare Stocks to Buy in Singapore

Raffles Medical is one of the top healthcare stocks to consider investing in, along with other prominent healthcare companies such as Singapore Medical Group, IHH Healthcare, and Q&M Dental Group. These companies operate in different segments of the healthcare industry, providing a range of services to customers in Singapore and other parts of the world. Investors interested in the healthcare sector can benefit from the growth potential of these companies, as demand for healthcare services is expected to continue to rise in Singapore and other countries.

Conclusion

Raffles Medical Group is a leading healthcare company in Singapore, providing a range of services to customers across the country. The company’s financial performance has been relatively stable, despite the challenges posed by the COVID-19 pandemic. Raffles Medical’s share price is influenced by various factors, including the company’s financial performance, industry developments, and market trends.

Investors interested in Raffles Medical can benefit from the independent research available on Smartkarma, where top independent analysts provide valuable insights into the company’s financial performance, competitive landscape, and investment prospects. Raffles Medical is one of the top healthcare stocks to consider investing in, along with other prominent healthcare companies such as Singapore Medical Group, IHH Healthcare, and Q&M Dental Group.

Overall, Raffles Medical Group’s strong brand recognition, diversified business lines, and strategic expansion plans make it a good stock to consider investing in for investors looking to gain exposure to the healthcare sector in Singapore.

Feb 07

Calculating Inflation Rate: Understanding the Key Metrics and Indicators

By Smartkarma Content | Macro, Smartkarma 101s

Inflation is a crucial economic indicator that measures the general rise in prices of goods and services over time. It affects the purchasing power of money, and understanding how to calculate inflation is essential for individuals, businesses, and governments to make informed financial decisions. In this article, we will explore the various measures of inflation and how to calculate them, including the consumer price index (CPI), producer price index (PPI), and personal consumption expenditure (PCE) inflation rate.

How to Calculate the Inflation Rate

The inflation rate is a key metric that measures the percentage change in the price of a basket of goods and services over a set period. To calculate the inflation rate, the following formula is used:

Inflation Rate = (CPI current year – CPI previous year) / (CPI previous year) x 100

For example, if the consumer price index in 2020 was 200 and in 2021 it was 210, the inflation rate would be:

Inflation Rate = (210 – 200) / 200 x 100 = 5%

How to Calculate Inflation using the Consumer Price Index (CPI)

The consumer price index (CPI) is the most widely used measure of inflation, and it measures the average price change for a basket of goods and services that consumers typically purchase, such as food, housing, transportation, and medical care. To calculate the inflation rate using the CPI, the following formula is used:

CPI Inflation Rate = (CPI current year – CPI previous year) / (CPI previous year) x 100

Measures of Inflation

There are three main measures of inflation, each with its own strengths and weaknesses. They are:

Consumer Price Index (CPI)
Producer Price Index (PPI)
Personal Consumption Expenditure (PCE) Inflation Rate

Consumer Price Index (CPI)

The Consumer Price Index (CPI) is the most widely used measure of inflation. It measures the average price change for a basket of goods and services that consumers typically purchase, such as food, housing, transportation, and medical care.

Producer Price Index (PPI)

The Producer Price Index (PPI) measures the average change in prices received by domestic producers for their output. It provides insight into the cost of production and the pricing power of companies.

Personal Consumption Expenditure (PCE) Inflation Rate

The Personal Consumption Expenditure (PCE) Inflation Rate measures the average change in prices for goods and services purchased by consumers. It is considered a more comprehensive measure of inflation than the CPI because it includes a broader range of goods and services, including those not typically included in the CPI.

Why We Calculate Inflation

Inflation affects the purchasing power of money, and it is essential to understand how it affects the economy. It helps individuals, businesses, and governments make informed financial decisions, such as adjusting interest rates and monetary policy.

Is the Consumer Price Index (CPI) the same as the Inflation Rate?

No, the consumer price index (CPI) is not the same as the inflation rate. The CPI measures the average change in prices for a basket of goods and services that consumers typically purchase, while the inflation rate measures the percentage change in the price of a basket of goods and services over a set period.

What is the best tool to measure inflation?

The best tool to measure inflation depends on the specific use case. For a general understanding of inflation, the Consumer Price Index (CPI) is the most widely used measure. For a more comprehensive understanding of inflation, the Personal Consumption Expenditure (PCE) Inflation Rate may be more suitable. In addition, the Producer Price Index (PPI) provides valuable insights into the cost of production and pricing power of companies.

What is the best inflation indicator?

There is no single best inflation indicator, as each has its own strengths and weaknesses. The Consumer Price Index (CPI) is the most widely used measure of inflation, while the Personal Consumption Expenditure (PCE) Inflation Rate provides a more comprehensive understanding of inflation. The Producer Price Index (PPI) provides valuable insights into the cost of production and pricing power of companies.

What is the easiest way to explain inflation?

Inflation is the general rise in prices of goods and services over time, affecting the purchasing power of money. It is crucial to understand inflation to make informed financial decisions, such as adjusting interest rates and monetary policy. To understand inflation, it is helpful to focus on key metrics and indicators, such as the Consumer Price Index (CPI), the Producer Price Index (PPI), and the Personal Consumption Expenditure (PCE) Inflation Rate.

In conclusion

Understanding how to calculate inflation and the various measures and indicators is crucial for individuals, businesses, and governments to make informed financial decisions. By using metrics such as the Consumer Price Index (CPI), the Producer Price Index (PPI), and the Personal Consumption Expenditure (PCE) Inflation Rate, it is possible to gain a comprehensive understanding of inflation and its effects on the economy. With its focus on providing insightful research and analysis, Smartkarma is an invaluable resource for anyone looking to stay ahead in the world of finance. Smartkarma is home to a diverse group of independent analysts who are experts in the field of macroeconomics and cross-asset strategy. These analysts, including Michael J. Howell, Manu Bhaskaran, Cam Hui, Prasenjit K. Basu, Said Desaque, and Phil Rush, bring their unique perspectives and insights to the platform, providing valuable research and analysis to investors and businesses. Their expertise in macroeconomics and cross-asset strategy is a valuable resource for anyone looking to make informed financial decisions. By publishing their research and insights on Smartkarma, these independent analysts offer a unique and valuable perspective on the financial world.

Feb 07

The Richest Man in the World: Who Are These Billionaires and How Did They Get There?

By Smartkarma Content | Smartkarma 101s

In recent years, the world has seen an unprecedented growth in the number of billionaires and their wealth. According to Forbes, there are now over 2,700 billionaires globally, with a combined net worth of over $13.1 trillion. This article provides an overview of the richest people in the world as of 2023.

Who is the No. 1 Richest Person in the World?

As of 2023, the No. 1 richest person in the world is Bernard Arnault, with a net worth of over $150 billion. Arnault is the CEO of LVMH, a luxury goods and fashion conglomerate that includes brands such as Louis Vuitton, Dior, and Bulgari.

Top 10 Richest People in the World Today

Here is a list of the current top 10 richest people in the world and a brief overview of their companies and how they made their wealth:

Bernard Arnault – Bernard Arnault is the CEO and Chairman of LVMH, the world’s largest luxury goods company. He has been at the helm of the company since 1989 and has overseen its massive expansion. In recent years, LVMH has acquired a number of high-profile brands, including Tiffany & Co and Bulgari. (luxury goods and fashion)
Elon Musk – Elon Musk is the CEO of Tesla and SpaceX, and is widely regarded as one of the most innovative entrepreneurs of our time. He is known for his ambitious plans to colonize Mars and revolutionize the transportation industry with electric and autonomous vehicles.
(electric cars, space travel, and renewable energy)
Jeff Bezos – Jeff Bezos is the founder and former CEO of Amazon, the world’s largest online retailer. He stepped down as CEO in 2021 but remains the company’s largest shareholder. Bezos has used his wealth to pursue a number of philanthropic endeavors and is widely regarded as one of the world’s leading innovators. (e-commerce)
Bill Gates – Bill Gates is the co-founder of Microsoft, the world’s largest software company. He is widely regarded as one of the most influential figures in the technology industry and has used his wealth to support a number of charitable causes, including global health and education initiatives. (software)
Warren Buffett – Warren Buffett is the chairman and CEO of Berkshire Hathaway, one of the largest and most successful investment companies in the world. He is widely regarded as one of the greatest investors of all time and has a reputation for his frugal lifestyle and long-term investment strategy. (investments)
Larry Ellison – Larry Ellison is the founder and former CEO of Oracle, one of the world’s largest software companies. He is known for his flamboyant lifestyle and has used his wealth to pursue a number of interests, including yachting and real estate. (technology)
Larry Page – Larry Page is the co-founder of Google, one of the world’s largest and most influential technology companies. He stepped down as CEO in 2015 but remains an active member of the company’s leadership team.
(search engine and online advertising)
Steve Ballmer – Steve Ballmer is the former CEO of Microsoft and is currently the owner of the Los Angeles Clippers of the NBA. He is known for his energetic and enthusiastic leadership style and has used his wealth to support a number of philanthropic endeavors.
(software and investments)
Sergey Brin – Sergey Brin is the co-founder of Google and is widely regarded as one of the most innovative thinkers in the technology industry. He stepped down as President of Alphabet, Google’s parent company, in 2019 but remains an active member of the company’s leadership team.
(search engine and online advertising)
Carlos Slim – Carlos Slim is a Mexican businessman and investor. He is the chairman and CEO of Grupo Carso, a holding company that controls a number of leading Mexican businesses. He is widely regarded as one of the greatest investors in Latin America.
(investments in a wide range of industries)

How to Become Rich

While it may seem like these individuals simply struck it rich overnight, the truth is that becoming wealthy takes time, hard work, and smart decision-making. Here are some common traits and strategies successful individuals have in common:

Strong work ethic: The wealthiest individuals in the world have a strong drive and determination to succeed. They are willing to put in the time and effort to achieve their goals.
Good financial management: Successful individuals are skilled at managing their finances and making smart investments. They understand the importance of budgeting and saving for the future.
Willingness to take calculated risks: The richest people in the world are not afraid to take risks, but they do so in a calculated and informed manner. They understand the potential rewards and consequences of their actions.
Networking and relationships: Building a strong network of connections and forming mutually beneficial relationships is critical for success. The richest individuals in the world have built a wide network of contacts that have helped them in their careers and businesses.

How to Get Rich in Singapore

Singapore is one of the wealthiest and economically stable countries in the world, making it an ideal place to start or grow a business. Here are some tips on how to get rich in Singapore:

Educate yourself: Singapore has a highly educated population, and continued learning is essential for success. Consider taking courses or attending seminars to stay up-to-date with industry trends and advancements.
Network and build relationships: Singapore has a vibrant business community, and building strong relationships with other entrepreneurs and business leaders can lead to new opportunities and growth.
Start a business or invest in one: Singapore is a hub for entrepreneurship, and starting your own business or investing in one can be a great way to generate wealth. Consider your skills and interests, and look for opportunities in growing industries.

Save and invest wisely: Singapore has a strong economy, but it’s important to manage your finances and make smart investments. Consider seeking professional financial advice and creating a well-structured financial plan.

How to Be a Millionaire in 5 Years

Becoming a millionaire in five years is a challenging but achievable goal. Here are some tips on how to reach this milestone:

Set clear and realistic financial goals: Having a clear understanding of what you want to achieve and a plan on how to get there is essential. Create a budget and stick to it, and make sure your goals are realistic and achievable.
Invest in high-growth industries: Consider investing in industries with high growth potential, such as technology or renewable energy. Do your research and consider seeking professional investment advice.
Save and reduce debt: Reducing debt and saving consistently can help you reach your goal more quickly. Consider creating an emergency fund and paying off any high-interest debt as soon as possible.
Network and seek opportunities: Building relationships and seeking out new opportunities can lead to new sources of income and investment opportunities. Attend industry events and conferences, and consider starting your own business.

In conclusion, the richest man in the world and the other top wealthiest individuals have achieved their success through a combination of hard work, smart decision-making, and a willingness to take calculated risks. While becoming wealthy may not happen overnight, by following these tips and strategies, you too can achieve financial success and prosperity.

Full List of the Top 100 Richest People in the World Today

Rank	Name	Total net worth($)	$ Last change	$ YTD change	Country/Region	Industry
1	Bernard Arnault	$190B	-$5.66B	+$28.1B	France	Consumer
2	Elon Musk	$178B	+$3.04B	+$40.6B	United States	Technology
3	Jeff Bezos	$126B	-$1.35B	+$19.2B	United States	Technology
4	Bill Gates	$116B	-$717M	+$6.57B	United States	Technology
5	Warren Buffett	$107B	+$1.44M	-$30.9M	United States	Diversified
6	Larry Ellison	$103B	-$866M	+$10.8B	United States	Technology
7	Larry Page	$95.6B	-$1.56B	+$12.7B	United States	Technology
8	Steve Ballmer	$91.7B	-$553M	+$5.91B	United States	Technology
9	Sergey Brin	$91.4B	-$1.49B	+$12.1B	United States	Technology
10	Carlos Slim	$82.3B	-$1.07B	+$7.97B	Mexico	Diversified
11	Francoise Bettencourt Meyers	$81.7B	-$1.12B	+$10.2B	France	Consumer
12	Mukesh Ambani	$79.3B	-$1.48B	-$7.85B	India	Energy
13	Zhong Shanshan	$69.0B	+$95.3M	+$1.41B	China	Diversified
14	Mark Zuckerberg	$69.0B	-$190M	+$23.3B	United States	Technology
15	Charles Koch	$68.6B	-$502M	+$1.58B	United States	Industrial
16	Julia Flesher Koch & family	$68.6B	-$502M	+$1.58B	United States	Industrial
17	Jim Walton	$65.3B	-$498M	+$1.39B	United States	Retail
18	Rob Walton	$64.5B	-$515M	+$1.24B	United States	Retail
19	Amancio Ortega	$63.0B	-$1.15B	+$8.34B	Spain	Retail
20	Alice Walton	$62.8B	-$512M	+$1.14B	United States	Retail
21	Gautam Adani	$56.4B	-$2.61B	-$64.2B	India	Industrial
22	Jacqueline Badger Mars	$55.8B	+$299M	+$1.10B	United States	Food & Beverage
23	John Mars	$55.8B	+$299M	+$1.10B	United States	Food & Beverage
24	Zhang Yiming	$54.9B	$0	$0	China	Technology
25	Alain Wertheimer	$49.9B	-$89.8M	+$6.67B	France	Consumer
26	Gerard Wertheimer	$49.9B	-$89.8M	+$6.67B	France	Consumer
27	Michael Dell	$49.3B	-$1.03B	+$855M	United States	Technology
28	Phil Knight & family	$47.2B	-$657M	+$3.35B	United States	Consumer
29	Giovanni Ferrero & family	$45.1B	-$15.7M	+$3.06B	Italy	Food & Beverage
30	Ma Huateng	$42.2B	-$900M	+$5.64B	China	Technology
31	Francois Pinault	$42.1B	-$1.65B	+$6.40B	France	Consumer
32	Len Blavatnik	$38.2B	-$10.9M	+$2.27B	United States	Diversified
33	Zeng Yuqun	$38.1B	-$497M	+$5.30B	Hong Kong	Industrial
34	Miriam Adelson	$36.6B	-$225M	+$5.14B	United States	Entertainment
35	Klaus-Michael Kuehne	$36.3B	-$585M	+$4.24B	Germany	Industrial
36	Jack Ma	$35.0B	-$210M	+$2.83B	China	Technology
37	Jeff Yass	$33.9B	-$265M	+$1.06B	United States	Finance
38	Abigail Johnson	$33.6B	-$550M	+$6.91B	United States	Finance
39	Colin Huang	$33.1B	-$648M	+$4.32B	China	Technology
40	Tadashi Yanai	$32.4B	+$478M	+$718M	Japan	Retail
41	Stephen Schwarzman	$32.3B	-$406M	+$5.80B	United States	Finance
42	Ken Griffin	$30.3B	+$259M	+$1.39B	United States	Finance
43	Vladimir Potanin	$30.2B	-$381M	+$1.66B	Russian Federation	Commodities
44	Changpeng Zhao	$29.8B	+$25.8M	+$17.3B	Canada	Finance
45	Shapoor Mistry	$29.6B	-$485M	+$1.80B	India	Industrial
46	Li Ka-shing	$29.5B	-$425M	+$1.00B	Hong Kong	Real Estate
47	Leonard Lauder	$28.1B	-$723M	+$1.63B	United States	Consumer
48	William Ding	$27.5B	-$447M	+$4.74B	China	Technology
49	Shiv Nadar	$27.0B	-$309M	+$2.53B	India	Technology
50	German Larrea	$26.8B	-$324M	+$4.19B	Mexico	Commodities
51	Leonid Mikhelson	$26.8B	+$630M	+$2.15B	Russian Federation	Energy
52	Thomas Peterffy	$26.3B	+$82.8M	+$3.69B	United States	Finance
53	Low Tuck Kwong	$26.2B	-$618M	-$2.17B	Indonesia	Energy
54	James Simons	$25.8B	-$150M	+$1.28B	United States	Finance
55	Henry Cheng	$25.5B	-$446M	+$1.02B	Hong Kong	Retail
56	Iris Fontbona & family	$25.4B	-$532M	+$1.59B	Chile	Commodities
57	Takemitsu Takizaki	$25.3B	-$629M	+$3.17B	Japan	Technology
58	Gina Rinehart	$24.9B	-$460M	+$960M	Australia	Commodities
59	Dieter Schwarz	$24.8B	-$180M	+$2.12B	Germany	Retail
60	Susanne Klatten	$24.7B	-$355M	+$2.38B	Germany	Industrial
61	Carl Icahn	$24.7B	-$5.52M	+$1.26B	United States	Diversified
62	Azim Premji	$24.5B	-$303M	+$536M	India	Technology
63	Xu Yangtian	$23.5B	$0	$0	China	Retail
64	He Xiangjian	$23.2B	-$746M	+$394M	China	Consumer
65	Andrew Forrest	$23.0B	-$170M	+$1.81B	Australia	Commodities
66	Wang Chuan-Fu	$22.8B	-$385M	+$2.86B	China	Consumer
67	Elaine Marshall	$22.8B	-$166M	+$530M	United States	Industrial
68	Lukas Walton	$22.7B	-$166M	+$563M	United States	Retail
69	Thomas Frist	$22.5B	-$366M	+$1.32B	United States	Health Care
70	Harold Hamm	$22.4B	-$25.0M	+$25.0M	United States	Energy
71	MacKenzie Scott	$22.3B	-$322M	+$3.40B	United States	Technology
72	Lee Shau Kee	$22.1B	-$261M	+$1.33B	Hong Kong	Real Estate
73	Stefan Quandt	$21.7B	-$280M	+$2.72B	Germany	Industrial
74	Dan Gilbert	$21.6B	-$874M	+$4.16B	United States	Real Estate
75	Eric Schmidt	$21.5B	-$326M	+$2.71B	United States	Technology
76	Vladimir Lisin	$21.4B	-$117M	+$1.51B	Russian Federation	Industrial
77	Alexey Mordashov	$21.3B	-$181M	+$2.57B	Russian Federation	Industrial
78	Jorge Paulo Lemann	$21.3B	-$141M	+$24.9M	Brazil	Food & Beverage
79	Ernesto Bertarelli & family	$20.7B	-$250M	+$1.39B	Switzerland	Diversified
80	Budi Hartono	$20.3B	-$214M	+$1.27B	Indonesia	Diversified
81	Alisher Usmanov	$19.7B	-$403M	+$1.22B	Russian Federation	Diversified
82	Jensen Huang	$19.6B	-$9.67M	+$5.79B	United States	Technology
83	John Menard	$19.3B	-$44.8M	+$1.11B	United States	Retail
84	Lakshmi Mittal	$19.2B	-$607M	+$1.84B	India	Commodities
85	Aliko Dangote	$19.2B	-$60.2M	+$496M	Nigeria	Industrial
86	Rodolphe Saade & family	$19.2B	-$25.0M	+$3.02B	France	Services
87	Michael Hartono	$19.1B	-$206M	+$1.23B	Indonesia	Diversified
88	Qin Yinglin	$18.3B	+$34.7M	+$891M	China	Food & Beverage
89	Robert Kuok	$18.2B	-$59.5M	+$1.27B	Malaysia	Diversified
90	Peter Woo	$18.2B	+$2.92M	-$737M	Hong Kong	Real Estate
91	Vicky Safra	$18.0B	-$273M	+$617M	Greece	Finance
92	Vagit Alekperov	$17.8B	-$143M	+$2.46B	Russian Federation	Energy
93	Huang Shilin	$17.8B	-$216M	+$2.47B	China	Industrial
94	Liu Yongxing	$17.4B	-$175M	+$2.25B	China	Industrial
95	Pang Kang	$17.2B	+$1.03M	+$37.4M	China	Food & Beverage
96	Zhang Zhidong	$17.1B	-$378M	+$2.39B	China	Technology
97	Li Xiting	$17.1B	-$476M	+$296M	Singapore	Health Care
98	Lui Che-Woo	$17.0B	-$143M	+$896M	Hong Kong	Entertainment
99	Eyal Ofer	$16.9B	-$102M	+$576M	Israel	Services
100	Cyrus Poonawalla	$16.8B	+$376M	+$2.57B	India	Health Care

Last Updated: 7th Feb 2023. Source: Bloomberg, Forbes, Various

Photo by Jacob Vizek on Unsplash

Feb 05

Index Rebalancing: Understanding the Basics

By Smartkarma Content | Event-Driven, Smartkarma 101s

Index rebalancing is a key aspect of portfolio management in the stock market. It involves adjusting the composition of a stock market index in order to maintain its desired level of market representation. The process of index rebalancing is important for ensuring the index remains representative of the market and accurately reflects market trends. As a result, it’s crucial to stay informed on the latest developments and insights in the field of index rebalancing.

That’s where independent investment research network, Smartkarma, comes in. On Smartkarma, top independent analysts like Travis Lundy, Brian Freitas, Sanghyun Park, Janaghan Jeyakumar, CFA, and Douglas Kim, publish their insights, data, and analysis on index rebalancing and other related content verticals.

In this article, we’ll answer some of the frequently asked questions about index rebalancing, including:

I. What is Index Rebalancing Strategy?

Index rebalancing strategy refers to the plan or approach used to adjust the composition of an index. This includes determining which securities to sell or buy, and when to do so, in order to maintain the desired level of market representation in the index.

II. Which Indexes Need Rebalancing?

Any stock market index can require rebalancing if its composition deviates significantly from its intended market representation. Some of the most commonly rebalanced indexes include the S&P 500, the Russell 2000, the FTSE 100, the MSCI World Index, and the Nifty 50.

III. What Happens During Index Rebalance?

During an index rebalance, securities are bought or sold in order to bring the index back to its desired level of market representation. This may be done on a set schedule, such as annually or quarterly, or it may be triggered by significant changes in the market. The rebalancing process may involve buying underrepresented securities and selling overrepresented securities in order to maintain the index’s desired level of market representation.

IV. What are the Risks of Rebalancing?

Rebalancing carries some inherent risks, including the risk of selling securities that are still performing well, and the risk of buying securities that are underperforming. Additionally, rebalancing requires buying or selling securities at specific times, which can be difficult to predict and may result in unfavorable market conditions.

V. What is the Purpose of Rebalancing?

The purpose of rebalancing is to ensure that an index remains representative of the market it is designed to track. By selling overrepresented securities and buying underrepresented securities, the index is brought back to its desired level of market representation. This helps to ensure that the index accurately reflects market trends and provides a more reliable benchmark for investors.

VI. How does a typical Index Rebalance Work?

Index rebalancing is a process of periodically adjusting the weightings of the components in a stock market index to align it with the current market conditions. This strategy helps maintain the integrity of the index, ensuring it accurately reflects the underlying market or sector it represents.

There are several indexes that need rebalancing, including the MSCI, FTSE, Russell, Nifty 50, ASX 300, and S&P 500. The frequency of rebalancing varies, with some indexes rebalancing on a monthly or quarterly basis, while others may only rebalance once or twice a year.

During an index rebalance, changes may be made to the components of the index, including additions, deletions, and weight adjustments. The objective is to ensure the index accurately reflects the market or sector it represents, taking into account changes in market conditions, company performance, and other relevant factors.

One of the main risks associated with rebalancing is the potential for increased trading costs and market impact, particularly if large amounts of stocks need to be bought or sold in a short period of time. In some cases, the process of rebalancing can also result in increased market volatility, which can negatively impact investor portfolios.

The purpose of rebalancing is to maintain the integrity of the index, ensuring it accurately reflects the underlying market or sector it represents. By periodically adjusting the weightings of the components, rebalancing helps to reduce risk and improve returns over the long-term.

There is no one-size-fits-all answer to the question of the best rebalancing strategy, as the best approach will depend on individual investment goals, risk tolerance, and market conditions. Some popular rebalancing strategies include periodic rebalancing, threshold rebalancing, and minimum variance rebalancing.

The S&P 500 rebalance works by periodically adjusting the weightings of the components to ensure the index accurately reflects the underlying market. This typically involves adding and deleting components, as well as adjusting the weightings of existing components.

While there is no guarantee that rebalancing will outperform other investment strategies, it can help to reduce risk and improve returns over the long-term by ensuring the index remains aligned with current market conditions.

The importance of index rebalancing research cannot be overstated. By keeping up-to-date with the latest trends and market conditions, investors can make informed decisions about when and how to rebalance their portfolios. At Smartkarma, an independent investment research network, top independent analysts publish their insights, data and analysis on Index Rebalancing. Some of the top independent analysts who publish on Smartkarma include Travis Lundy, Brian Freitas, Sanghyun Park, Janaghan Jeyakumar, CFA, and Douglas Kim. With access to this wealth of information, investors can stay ahead of the curve and make informed investment decisions.

Top Indices with Index Rebalance Research on Smartkarma in the last 12 months:

Feb 05

Hang Seng Future Index: An Overview

By Smartkarma Content | Event-Driven, Smartkarma 101s

The Hang Seng Future Index is a widely-followed stock market index of the Hong Kong Stock Exchange (HKSE). It provides investors with an overview of the performance of the Hong Kong stock market, with a focus on large and mid-cap stocks. It is widely followed by financial market participants, including investors, traders, and analysts, as a benchmark for the overall health of the Hong Kong stock market.

What is Hang Seng Index Futures?

Hang Seng Index Futures are futures contracts that are based on the Hang Seng Future Index. These contracts allow investors to gain exposure to the performance of the Hong Kong stock market, without having to physically own the underlying stocks.

What are HSI future opening hours?

The opening hours of Hang Seng Index Futures are from 9:15am to 4:00pm Hong Kong Time, Monday to Friday, excluding public holidays in Hong Kong.

How to trade Hang Seng Index futures?

Trading Hang Seng Index futures can be done through a futures broker. Before trading, it is important to understand the basics of futures trading and the associated risks.

What stocks make up the Hang Seng Index?

The Hang Seng Index is comprised of 50 large and mid-cap stocks listed on the Hong Kong Stock Exchange. The constituents of the index are reviewed regularly and are selected based on a number of criteria, including market capitalization, liquidity, and sector representation.

What is minimum lot size in HKSE?

The minimum lot size for trading on the Hong Kong Stock Exchange varies depending on the stock. For Hang Seng Index Futures, the minimum contract size is usually one index point, which represents a value of HKD 50,000.

Can you trade with HKSE?

Yes, it is possible to trade on the Hong Kong Stock Exchange (HKSE) through a securities broker. This allows investors to buy and sell stocks listed on the HKSE, as well as trade other financial products, such as Hang Seng Index Futures.

How many stocks are in the HSI?

The Hang Seng Index (HSI) is comprised of 50 stocks.

What are the futures market hours?

The futures market hours vary depending on the exchange and the specific futures contract. For Hang Seng Index Futures, the market hours are from 9:15am to 4:00pm Hong Kong Time, Monday to Friday, excluding public holidays in Hong Kong.

What is futures last trading day?

The last trading day for a futures contract is the final day on which the contract can be traded before its expiration date. This date is determined by the exchange on which the futures contract is traded. For Hang Seng Index Futures, the last trading day is typically one business day before the expiration date of the contract.

How to buy index futures?

To buy index futures, you will need to open an account with a futures broker. You will also need to complete the necessary documentation and deposit funds into your account. Once your account is set up, you can place an order to buy Hang Seng Index Futures through your broker.

How do index futures work?

Index futures work by allowing investors to speculate on the future performance of a stock market index, such as the Hang Seng Future Index. When an investor buys a Hang Seng Index Futures contract, they are essentially betting on the direction of the index – either up or down. If the index moves in the direction that the investor predicted, they can make a profit. However, if the index moves in the opposite direction, the investor may incur a loss.

What is an example of index futures?

An example of index futures is the Hang Seng Index Futures contract. This futures contract is based on the Hang Seng Future Index and allows investors to gain exposure to the performance of the Hong Kong stock market.

Whether you are a professional investor, trader, or simply an individual looking to stay informed about the Hang Seng Future Index, the independent research network, Smartkarma, is an excellent resource to turn to for up-to-date and actionable information on index events. With top independent analysts, including Brian Freitas, Travis Lundy, Joe Jasper, Janaghan Jeyakumar, CFA, and more, publishing their research and insights on the platform, you can stay ahead of the curve and make informed investment decisions.

Feb 05

How to Invest in IPOs: A Beginner’s Guide

By Smartkarma Content | ECM, Smartkarma 101s

An initial public offering (IPO) occurs when a company first offers its shares to the public. Investing in IPOs can be an exciting opportunity for investors to get in on the ground floor of a growing company. However, it’s important to understand the risks involved and conduct thorough research before making an investment decision.

Is IPO a Good Investment?

The answer to this question is not straightforward and depends on a number of factors. On one hand, investing in an IPO can provide investors with the opportunity to get in on the ground floor of a growing company and potentially realize substantial returns. On the other hand, IPOs can also be high-risk investments, as the performance of newly public companies is often uncertain.

It’s important to conduct thorough research and understand the risks involved before making an investment decision. This includes analyzing the company’s financials, understanding its industry and competition, and considering the experience and track record of its management team.

Smartkarma is an independent investment research network where top independent analysts publish their research and insights. Independent analysts cover important content verticals such as IPO research on Smartkarma, providing investors with in-depth analysis and insights on the most popular IPOs.

Should a Beginner Invest in IPO?

Investing in IPOs is not recommended for beginners, as it can be a high-risk investment. Beginners should consider starting with more conservative investments and building their knowledge and experience before considering an IPO investment.

Can Anyone Buy IPO Stocks?

Yes, anyone can buy IPO stocks, provided they have a brokerage account and the necessary funds to make the investment.

Is IPO High Risk?

Yes, investing in IPOs can be high-risk due to the uncertain performance of newly public companies. It’s important to understand the risks involved and conduct thorough research before making an investment decision.

How Much Money Do I Need to Invest in an IPO?

The amount of money needed to invest in an IPO can vary, but it’s typically possible to purchase shares with a small amount of money. It’s important to consider the investment goals and risk tolerance before determining how much money to invest in an IPO.

Which is the Best IPO to Buy?

There is no single best IPO to buy, as the performance of an IPO is dependent on a variety of factors such as the company’s financials, industry, competition, and management team. It’s important to conduct thorough research and consider the risks involved before making an investment decision.

Some of the top independent analysts on Smartkarma who cover IPOs include Douglas Kim, Sumeet Singh, Andrei Zakharov, Ke Yan, CFA, FRM, Arun George, Rickin Thakrar, Clarence Chu, and Ethan Aw. These analysts have in-depth knowledge of the latest market trends and have analyzed some of the most popular IPOs in the last 12 months, such as WCP, Lionheart Acquisition Corp II, CALB, SK Shieldus, GoTo, Onewo, Tianqi Lithium, Life Insurance Corp of India (LIC), SOCAR, Alibaba Dual Listing, Leapmotor, Thai Life Insurance, Giant Biogene Holding, Growatt Technology, I-Tail, Weilong Delicious Global, Yunkang Group, Tencent, China Tourism Group Duty Free Corp Ltd, Delhivery, Sunshine Insurance, Thai Beverage, VinFast, Lygend Resources & Technology, and Blibli.

Which is Better: IPO or Share?

The answer to this question depends on the specific investment goals and risk tolerance.

Feb 05

Introduction to the SENSEX Index

By Smartkarma Content | India, Smartkarma 101s

The S&P BSE SENSEX, also known simply as the SENSEX, is a stock market index of the Bombay Stock Exchange (BSE). It is one of the oldest and most widely-followed equity indices in India, and serves as an indicator of the overall health of the Indian stock market. In this article, we will answer some frequently asked questions about the SENSEX index.

What is the SENSEX Index?

The SENSEX is a market capitalization-weighted index that consists of 30 of the largest and most actively traded stocks on the BSE. The index is calculated using a free float market capitalization methodology, which means that only the portion of a company’s outstanding shares that are available for trading are considered when determining its weight in the index.

Is it better to invest in the SENSEX?

Whether or not it is better to invest in the SENSEX depends on a number of factors, such as an individual’s investment goals, risk tolerance, and market outlook. That being said, the SENSEX is a widely-followed index and can serve as a good indicator of the overall performance of the Indian stock market. For more in-depth analysis and insights, you can check out the independent investment research published by top analysts on the Smartkarma platform, including Pranav Bhavsar, Ankit Agrawal, CFA, Nitin Mangal, Tina Banerjee, and Hemindra Hazari.

How many stocks are listed in the SENSEX?

The SENSEX consists of 30 of the largest and most actively traded stocks on the BSE. Overall, some of the most popular companies listed in India include HDFC Bank, Yes Bank, Reliance Industries, HDFC Limited, Vedanta Ltd, Bharti Airtel, Kotak Mahindra Bank, Mahindra & Mahindra, ICICI Bank Ltd, Apollo Hospitals Enterprise, Zomato, Adani Enterprises, Dabur India Ltd, Maruti Suzuki India, Paytm, Metropolis Healthcare Limited, ITC Ltd, Tata Motors Ltd, Ujjivan Financial Services, Dr Lal PathLabs Ltd, Embassy Office Parks REIT, Zee Entertainment Enterprises, Axis Bank Ltd, and Infosys Ltd.

Is the NIFTY better than the SENSEX?

The NIFTY and the SENSEX are both widely-followed equity indices in India and serve as indicators of the overall health of the Indian stock market. Whether or not one is better than the other depends on a number of factors, such as an individual’s investment goals, risk tolerance, and market outlook.

What happens if the SENSEX is high?

If the SENSEX is high, it generally means that the Indian stock market is performing well and that investors are optimistic about the future prospects of the companies listed in the index. However, a high SENSEX does not necessarily guarantee that individual stocks within the index will perform well, so it is important to do your own research and make informed investment decisions.

Can I buy the SENSEX for the long term?

Yes, you can buy the SENSEX for the long term, either by investing directly in the underlying stocks that make up the index, or by purchasing exchange-traded funds (ETFs) or index funds that track the SENSEX. It is important to consider your investment goals, risk tolerance, and market outlook when making investment decisions, and to regularly review and adjust your portfolio.