•Last week, $CSOP LOW CARBON US$(LCU.SI)$ LCU (+2.73% in USD), $CSOP SEA TECH ETF US$(SQU.SI)$ SQU (+0.87% in USD), $CSOP DIV ETF S$(SHD.SI)$ SHD (+1.03% in SGD) and $CSOP Star&Chinext50 S$(SCY.SI)$ SCY (+4.43% in SGD) gained while $CSOP S-REITs INDEX ETF(SRT.SI)$ SRT (-0.69% in SGD) fell slightly amidst a backdrop of a dovish FOMC statement post FOMC meeting where rates were held constant.
•LCU’s gains were primarily attributable to industrials, financials and consumer discretionary by sectors and Japan and China by country. By individual firms, gains were due to Toyota Motor Corp, Tencent Holdings and Hitachi Ltd. Toyota Motor Corp gained following a BI report mentioning that Japan’s auto 2024 sales is anticipated to rise in US due to better supply and strong demand for their products. Tencent Holdings rose following CNG-GPC’s report that China’s domestic video-game sector in 1Q grew 7.6% y/y to 23.4 billion yuan. Hitachi Ltd rose after its full-year adjusted operating income forecast beat average analyst estimates, and after it announced a 2.27% share buyback, as well as a 1-for-5 stock split effective July 1st.
•SQQ/SQU’s gains were primarily because of Astra and Sea Ltd. Astra gained after an upgrade by a Bahana Securities analyst due to its appealing stock valuation. Further, its Q1 earnings revealed a boost in its auto sector, leading to a rise in operating profit. Sea Ltd rose following Morgan Stanley's research suggesting Sea Ltd's 2025 estimated valuation aligns with e-commerce peers, which could bolster its stock performance. MS anticipates the e-commerce sector to return to profitability in 2H2024, driven by an increased market share and high-teens GMV growth. Shopee's market dominance, scale, logistics, and payment ecosystem are expected to enhance profitability in 2025.
•SRT’s losses were predominantly attributed to industrial, data center and retail by subsector, and MINT, FLT and KDCREIT by individual REITs. MINT fell after Maybank Research lowered its target price from S$2.30 to S$2.15.
Source: Bloomberg, as of 20240503. Past performance is not indicative of future performance.
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