•Last week, $CSOP LOW CARBON US$(LCU.SI)$ (+2.11% in USD), $CSOP SEA TECH ETF US$(SQU.SI)$ (+3.98% in USD), $CSOP S-REITs INDEX ETF(SRT.SI)$ (+0.81% in SGD) and $CSOP DIV ETF S$(SHD.SI)$ (+0.55% in SGD) gained, while $CSOP Star&Chinext50 S$(SCY.SI)$ (-1.62% in SGD) fell. This is driven by positive earnings release of portfolio companies.
•LCU’s gains were mainly driven by IT, communication services and consumer discretionary by sectors. In terms of geography, Japan, China and Taiwan led the rally. As for individual stocks, TSMC, Tencent Holdings and Sony Group were primary contributors. TSMC gained on the back of plans to start constructing its factory in Dresden, Germany in 2H24. Tencent Holdings rose after it reported better-than-anticipated 62% surge in earnings. Following that, brokerages including Goldman Sachs and Morgan Stanley have also increased Tencent’s price targets. Sony Group’s share price rose as it announced a 2.46% share buyback and a 5-for-1 stock split. Moreover, net income beat estimates despite annual revenue forecast missing estimates.
•SQQ/SQU’s gains were mainly contributed by Sea Ltd, Delta and Grab. Sea Ltd rose as its 1Q24 total GAAP revenue rose by 22.8% YoY to US$3.7bn, surpassing consensus estimates. Adjusted EBITDA of US$401mn exceeded consensus expectations. Sea's strong performance is attributed to the success of FreeFire and Shopee, with the latter's unit fundamentals improving monthly. Consequently, its target price has been increased by Daiwa Capital Markets, DBS Group Research, and TD Cowen, in anticipation of improved profitability in its ecommerce sector. Grab rose after it reported its 3rd straight quarterly profit on an adjusted basis, surpassing analysts' predictions and raising its annual forecast. The company, which has ventured into digital banking and online lending, expects these new initiatives to further boost its earnings.
•SRT’s gains were led by industrial, office and retail REITs. In terms of individual securities, gains were mainly contributed by MPACT, CLAR, and CICT.
Source: Bloomberg, as of 20240517. Past performance is not indicative of future performance.
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