In today’s briefing:
- Ohayo Japan | Will the Rotation to Small Caps Continue?
- Semiconductor Equipment Stocks: A Bounce Before the Reckoning
- Chinese Airlines: Diverging Performance
- GEMWeekly (19 Jul 2024): China’s Third Plenum; India, Malaysia Macro; Kakao, Samsung Electronics
Ohayo Japan | Will the Rotation to Small Caps Continue?
- The S&P 500 dropped 0.7% and the Nasdaq Composite declined 0.8%, both marking their worst week since April
- Speculative short positions in the yen have dropped significantly following Japan’s suspected yen-buying intervention
- Effissimo Capital Management, an activist investment fund, acquired 6.03% of Teijin’s shares
Semiconductor Equipment Stocks: A Bounce Before the Reckoning
- Irate U.S. politicians have gunned down their own tech sector, triggering declines of 7% to 20% among leading semiconductor equipment stocks outside China.
- We expect a bounce after such large declines – and further gains for Naura and AMEC in China.
- Investors now face difficult questions about the future of Chinese demand, the sustainability of the AI boom, and valuations. We are not optimistic.
Chinese Airlines: Diverging Performance
- All three Chinese airlines trimmed their losses in 1H24, suggesting a pick-up in sector fundamentals. However, their 2Q24 bottom line displayed different trends.
- Air China Ltd (H) (753 HK) is performing the best, with QoQ improvement in both reported and recurring losses (reduction by 41.7% and 7.4%, respectively).
- China Southern Airlines (1055 HK), however, dipped back into red in 2Q24 after making a profit in 1Q24. With Air China underperforming YTD, there is room to revenge in 2H24.
GEMWeekly (19 Jul 2024): China’s Third Plenum; India, Malaysia Macro; Kakao, Samsung Electronics
- The Global Emerging Markets Weekly summarizes the key news and related developments impacting the largest countries and constituents of the Global Emerging Markets equity indices.
- Macro data points: Chinese GDP growth, retail sales, and industrial production, Indian inflation data, and Malaysian GDO growth.
- Companies mentioned:Kakao Corp (035720 KS), Samsung Electronics (005930 KS)
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
