•Last week, $CSOP Star&Chinext50 S$(SCY.SI)$ (+0.71% in SGD) and $CSOP DIV ETF S$(SHD.SI)$ (+1.02% in SGD) gained while $CSOP LOW CARBON US$(LCU.SI)$ (-1.42% in USD), $CSOP SEA TECH ETF US$(SQU.SI)$ (-3.15% in USD), and $CSOP S-REITs INDEX ETF(SRT.SI)$ (-0.68% in SGD) fell.
•LCU’s losses were mainly driven by IT, consumer discretionary and industrials by sectors. In terms of geography, losses were attributable to China, Japan and South Korea. As for individual stocks, TSMC, Samsung Electronics, Tencent Holdings were primary contributors. TSMC fell amidst falling demand for Taiwanese ETFs following tighter regulatory oversight and concerns about asset concentration following the boom a few months back. Samsung Electronics fell as South Korea’s nuclear safety authorities investigate its semiconductor plant because 2 employees were exposed to radiation and showed abnormal symptoms on their fingers; as well as its labor union’s plans for its first strike after unresolved wage talks. Tencent Holdings fell following Nikkei reports of Tencent being requested by China’s regulators to reduce the mobile payment market share of its WeChat app. Despite this, its blockbuster release of Dungeon & Fighter is postulated to have generated upwards of $140m in player spending in its first week in China. It has also bought back 2.72m shares for HK$1b last week.
•SQQ/SQU’s losses were mainly contributed by Sea Ltd, Astra and Wipro. Sea Ltd fell amidst issues regarding Indonesia’s anti-trust as Shopee and Lazada are suspected of violations of anti-competitive rules and the outcome is said to be hard to determine by Morgan Stanley currently. Wipro fell following rising bond yields globally prompting concerns regarding high rates probably staying high for longer.
•SRT’s losses were led by office, industrial, and retail REITs. In terms of individual securities, losses were mainly contributed by CICT, MPACT and KDCREIT. Despite MPACT’s fall, it has announced plans to divest to sell Mapletree Anson for S$775 million, with the estimated S$762 million proceeds to be used for debt reduction and this transaction is predicted to be DPU accretive on a pro forma basis.
Source: Bloomberg, as of 20240531. Past performance is not indicative of future performance.
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