In today’s briefing:
- War + inflation can lead to stagflation
- The Week That Was in ASEAN @Smartkarma – Rough for Sea Ltd, Grab’s Tumble, and Farm Fresh IPO
- FSC and KRX Jointly Announce Revisions to Spinoffs and Double Listings in Korea
- Heightened Uncertainty Around The World – Mar 2022
- The Philippines: Pessimism Over The Economy Is Overdone
War + inflation can lead to stagflation
- The last ten days have been critical and even distressing. The Russian invasion of Ukraine is a terrible event. This event is heartbreaking from a human point of view, and it had heavy consequences on markets too.
- The fear led investors to put money on the most classical safe havens, like Gold, Treasury, Bund, Dollar and Yen
- On the other side, equities have been severely hit, especially in Europe.
The Week That Was in ASEAN @Smartkarma – Rough for Sea Ltd, Grab’s Tumble, and Farm Fresh IPO
- 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) and Grab (GRAB US) post results along with an interesting trade idea on Bangkok Bank Public (BBL TB).
- We also had two insights on Farm Fresh Berhad (FF MY) IPO, commentary on Singapore Press Holdings (SPH SP) plans to delist plus some other new-economy developments.
FSC and KRX Jointly Announce Revisions to Spinoffs and Double Listings in Korea
- On 6 March, the Financial Services Commission (FSC) and the Korea Exchange (KRX) jointly announced revisions and guidelines to spin-offs and double listings in Korea.
- The new guidelines of the FSC and KRX regarding the spin-offs/double listings is positive and a step in the right direction to improve the corporate governance of companies in Korea.
- On the other hand, one of the consequences of these changes could be that the parent companies may take more time to complete IPOs of their promising affiliates.
Heightened Uncertainty Around The World – Mar 2022
- It’s been a crazy past two years. Pandemic, world-wide lockdown, toilet paper shortage, people turning vaccines into a political matter, and etc
- Now, Russia’s invasion added a whole new level of uncertainty on top of an already unstable world.
- Oil price has been shooting up ever since rumors started about the invasion, and since the war broke out, it is literally skyrocketing.
The Philippines: Pessimism Over The Economy Is Overdone
- As the Covid-19 situation improves, Metro Manila and 38 other areas have progressed to the lowest level of the national alert system. Businesses can now operate at full capacity.
- The release of pent-up demand bodes well for the economy, at least for 1H22, evinced by the acceleration in credit growth, and the normalisation in credit card loans.
- A mix of short-term and secular trends will support the economy further. Higher deployment caps for OFW nurses, the relaxation of border controls, and election-related spending will boost growth.
Before it’s here, it’s on Smartkarma
