Last week, $CSOP LOW CARBON US$(LCU.SI)$ (+2.04% in USD), $CSOP SEA TECH ETF US$(SQU.SI)$ (+3.25% in USD), $CSOP S-REITs INDEX ETF(SRT.SI)$ (+0.68% in SGD) gained, while $CSOP DIV ETF S$(SHD.SI)$ (-0.82% in SGD) and $CSOP Star&Chinext50 S$(SCY.SI)$ (-0.42% in SGD) fell.
LCU’s gains were mainly driven by IT, communication services, and financials by sectors. In terms of geography, Taiwan, South Korea and China led the rally. As for individual stocks, TSMC, Samsung Electronics and Tencent Holdings were primary contributors. TSMC rose as investment sentiment was boosted by its 3.25mn share buyback plan at record highs. Moreover, TSMC plans to purchase ASML's high-NA EUV lithography machine this year, indicating higher demand for its advanced sub 2nm processes than initially predicted, leading to an earlier upgrade of its production abilities. Samsung Electronics increased after Nvidia Corp mentioned it is working to certify Samsung’s high-bandwidth memory chips, the last step before it can begin supplying this component which is needed for training AI platforms. Moreover, South Korea’s May exports grew on robust chip demand. Tencent Holdings gained following its denial of Nikkei’s story on its fintech business, which shifted the narrative back to its solid growth outlook and its solid 1Q24 beat. Higher demand for short videos and AI-enhanced videos ought to increase operating margin by 290bps as enhanced monetization and new title launches returns the domestic video game business to modest growth.
SQQ/SQU’s gains were mainly contributed by Sea Ltd, Wipro and Infosys. Sea Ltd gained after e-commerce in Southeast Asia was reported to be experiencing steady growth, with firms like Shopee increasing merchant fees over the past year. Sea Ltd, with its substantial funds, could attract the Gen Z demographic to Shopee by expanding its social commerce.
SRT’s gains were led by office, retail and industrial REITs. In terms of individual securities, gains were mainly contributed by MPACT, CICT and CLAR. MPACT gained after Moody's confirmed its BAA1 issuer rating due to its planned sale of Mapletree Anson, a non-essential office, to lower leverage.
Source: Bloomberg, as of 20240607. Past performance is not indicative of future performance.
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