June 13, 2019 – APAC Market Overview: Leading Markets, Themes, and Ideas with Derek Higa

Several APAC markets are in a Rally Attempt and could have a follow-through day in the coming sessions, warranting an update to a Confirmed Uptrend. For now, our investment approach remains cautious, however, we continue to notice pockets of strength in APAC. In this week’s webinar, Director, Research Analyst Derek Higa will highlight APAC market conditions and sector rotation. He’ll be joined by other William O’Neil + Co. analysts to examine the themes and ideas they think warrant your attention.

APAC Weekly Summary

Key takeaways include:

Majority of APAC markets Under Pressure or in a Rally Attempt

Recommend a patient approach, being selective to areas of strength

Use follow-through days to begin gradual approach to allocating capital

India is a preferred market

MSCI Asia ex. Japan (

) testing resistance along 200-DMA

APAC Market Conditions, Breakouts, and Focus List Count

Historical study about the significance of the 200-DMA for Hong Kong, Japan, and India

Highlight key sector trends in Hong Kong, Japan, and India

Focus List themes highlighted in the report:

Hot Pot Cuisine: Yihai International (YIHA.HK; 1579:HK)

WAAAX Stocks: Wisetech Global (WTC.AU; WTC:AU), Xero (XRO.AU; XRO:AU)

SE Asia Rotation: Mungthai Capital (MUTH.TH; MTC:TB)

Other high conviction Focus List ideas

Lagging stocks with Negative Alerts

APAC Market Update, Themes, and Ideas

Key takeaways from this report:

Majority of APAC markets Under Pressure or in a Rally Attempt

Recommend a patient approach, being selective to areas of strength

Use follow-through days to begin gradual approach to allocating capital

India is a preferred market

MSCI Asia ex. Japan (

) testing resistance along 200-DMA

APAC Market Conditions, Breakouts, and Focus List Count

Historical study about the significance of the 200-DMA for Hong Kong, Japan, and India

Highlight key sector trends in Hong Kong, Japan, and India

Focus List themes highlighted in the report:

Hot Pot Cuisine: Yihai International (YIHA.HK, 1579:HK)

WAAAX Stocks: Wisetech Global (WTC.AU, WTC:AU), Xero (XRO.AU, XRO:AU) ‘

SE Asia Rotation: Mungthai Capital (MUTH.TH, MTC:TB)

Other high conviction Focus List ideas

Lagging stocks with Negative Alerts

APAC Weekly Summary

Key points from this week’s report:

We downgraded Japan to a Downtrend last Friday. See our note here.

Given the escalation of the trade war, investment opportunities in South Asian markets could become more appealing due in part to supply chain relocation.

Thus far in 2019, the Philippines has been outperforming among Southeast Asian markets. Find our comparison chart on page 3 and Datagraph for the PSE Composite on page 4.

Highlighted Focus List ideas: Muangthai Capital ( MUTH.TH ) and SM Prime Holdings ( SMP.PH ). Annotated Datagraphs on page 7 and 8.

Find our actionable ideas list on page 10.

Info Edge breaking out to all-time highs, Actionable

Key points from the report:

Shares broke out of a five-week flat base on above average volume and are currently actionable.

On May 28, the stock declined around 1.5% intraday and later recovered after announcing its FY19 results to close up 2.7%. It has gained ~11% in the past three days.

Stellar fundamental ratings: Composite Rating 98, SMR Rating A, EPS Rank 68.

Solid technical ratings: RS Rating 94, A/D Rating A.

The number of funds holding the stock increased to 186 as of March 2019 from 116 as of March 2018.

APAC Weekly Summary

Key points from this week’s report:

The majority of APAC markets remain in an Uptrend Under Pressure and the number of distribution days remains elevated (median of 4.5 among all APAC markets).

We remain cautious as markets remain volatile. We highlight resilient Focus List ideas on page 3 and low-beta stocks on page 8.

The Consumer Staple sector (WS005.R3) is outperforming other sectors. Stocks in this sector that are near the pivot range are listed on page 4.

Highlighted Consumer Staple Focus List idea: Tsingtao Brewery ‘H’ ( TSIN.HK ).

See actionable Focus List ideas on page 9.

APAC Weekly Summary

Key points from this week’s report:

We shifted China, Hong Kong, Japan, and India to an Uptrend Under Pressure this week and have become more cautious overall. The number of distribution days is rising (median of four among all APAC markets).

We recommend a more cautious approach. Continue to trim extended ideas and look to reduce those trading below support levels.

This week, we focus on India’s market. We are looking for the Sensex to consolidate near highs to remain constructive.

Indian large caps continue to be among the most constructive in APAC. In particular, Financial and Technology large caps have outperformed in India.

Highlighted Focus List ideas: Kotak Mahindra ( KOK.IN; KMB:IN ) and Tata Consultancy ( TSE.IN; TCS:IN).

See our list of actionable ideas on page 11.