Daily Brief Financials: Hang Seng Index, Lippo Karawaci, Ethereum and more

• We continue our coverage of the Hang Seng Index : in our previous insight we theorized a continuation of the rally in September.
• So far the index is following the path outlined (pullback, then rally). What is going to happen in the next few weeks, if September closes up?
• Broadly speaking we see a potential continuation of the rally in October, but there may be some resistance in the short-term.

Lippo Karawaci’s (LPKR) H1/24 results were robust in our view, with growth in all business segments pro forma for the deconsolidation of Siloam International Hospital (SILO). The new strategy and continued sell-down of SILO was a surprise. That said, the sales were carried out as SILO shares hit an all-time high, and at a very high valuation (PE ratio of almost 40x). The resulting cash proceeds and debt reduction are credit positive, and improved LPKR’s credit profile. If investment in listed associates are treated as cash, the company would have a large net cash position.

• Since the Ethereum merge on September 15, 2022, Ethereum has dropped 48% compared to Bitcoin.
• This Sunday marked the two-year anniversary of the Ethereum merge, during which it switched from Proof-of-Work to Proof-of-Stake.
• As part of this transition, Ethereum’s issuance of new Ether was sharply reduced from 4% to less than 1% annually.