In today’s briefing:
- Kino Indonesia (KINO IJ) – Undiscovered Consumer Proxy
- Shanghai/Shenzhen Southbound Connect: Weekly Moves (24 June 2022)
- Inflation Peaking?; ACWI, ACWI Ex-US Near Support; Many Bottoms-Up Stock Recommendations
Kino Indonesia (KINO IJ) – Undiscovered Consumer Proxy
- Kino Indonesia (KINO IJ) continues to look like a lesser known consumer proxy despite its interesting portfolio of leading brands in beverages, personal care, food, and pharmacy.
- The company is already seeing a strong rebound in the sales of beverages and personal care products, as mobility resumes in Indonesia.
- Higher packaging, distribution, and input costs are putting some pressure on margins but this is being offset through selective price increases. The recent pull-back in share price provides an opportunity.
Shanghai/Shenzhen Southbound Connect: Weekly Moves (24 June 2022)
- Inside is a recap of movements in the last week relating to the Shanghai and Shenzhen-Hong Kong Stock Connect facilities, broken down by company and industry.
- Overall, net inflow over the past week was ~US$1.3bn, split US$0.4bn for Shanghai and US$0.9bn for Shenzhen.
- The largest inflows were into XPeng (9868 HK) and HKEX (388 HK). The largest outflow was in Meituan (3690 HK) and Koolearn (1797 HK).
Inflation Peaking?; ACWI, ACWI Ex-US Near Support; Many Bottoms-Up Stock Recommendations
- Many indexes (ACWI-US,ACWX-US,etc.) are near support, and we could see a bear market bounce, but until these indexes reverse their downtrends and break above resistance levels, we cannot be bullish.
- On a positive note, we are starting to see signs that inflation is peaking, as commodity prices have pulled back substantially, and the Energy/Materials Sectors are under significant pressure.
- If inflation and commodity prices have indeed peaked, global equities are likely in the early stages of a bottoming process.
Before it’s here, it’s on Smartkarma
