In today’s briefing:
- Australia: Underweight & Underowned as Allocations Slip to All-Time Lows.
- A frustrating month for markets
- The Week That Was in ASEAN@Smartkarma – Sea Ltd & FreeFire, Arwana Citramulia, and CPO’s Poor Show
Australia: Underweight & Underowned as Allocations Slip to All-Time Lows.
- Less than half the active Global managers in our analysis have exposure to Australian stocks, the lowest levels in over a decade.
- Versus the MSCI ACWI benchmark, Australia is the 3rd largest underweight country holding globally, with sector-wide declines in ownership occurring over the last 6-months, headed by Materials.
- Underweights are driven by BHP Group (BHP AU) and Commonwealth Bank of Australia (CBA AU), with CSL Ltd (CSL AU) the most widely held stock in Australia.
A frustrating month for markets
- After almost 2 years of rising stock prices, and falling yields, 2022 started in a frustrating way.
Most of the equity indices are negative YTD, and after the big fall in the first 3 weeks of the year, the reaction has been weak. Indeed many indices have been flat in the last weeks.
Of course markets are now focused on 3 main themes: earnings, inflation and geopolitics.
The Week That Was in ASEAN@Smartkarma – Sea Ltd & FreeFire, Arwana Citramulia, and CPO’s Poor Show
- The Week That Was in ASEAN@Smartkarma is filled with an eclectic mix of differentiated, substantive, and actionable insights, macro and equity bottom-up, from across South East Asia.
- The past week saw insights on Sea Ltd (SE US) post the FreeFire ban in India plus high-quality tile producer Arwana (ARNA IJ) and Industrial player AKR Corporindo (AKRA IJ)
- We also look at regional logistics player J&T plus Adi Sarana Armada (ASSA IJ) as it ramps up Anteraja as well as palm oil plays and why they have lagged.
Before it’s here, it’s on Smartkarma
