Author: Kenley Scott

Sector Performance Following Trump Election Victory

• Broadly, Transportation, Energy, Metals, and Mining sectors gained, while Utility lagged post the election results. The ETF tracking Metals and Mining (XME) gained ~8.1%, while the transportation ETF XTN gained 6.6% and broke out of a stage-one consolidation base. XLE gained 3.8% and retook all its key moving averages, driven by strong price action in the oil and gas field service providers. Next level of resistance is near $94.5. XLU declined 1% and is trading 6% off highs

Key Sector Updates for the Week Ending 10/31/2024
1. First Solar (FSLR), the world’s largest thin-film solar module maker, reported weaker-than-expected Q3 FY34 results.
Revenue (+11% y/y) missed estimates by 17% and EPS (+16% y/y) missed estimates by 7%. Earnings were primarily
impacted by a $50M product warranty reserve charge during the quarter. Management cut its FY24 guidance for net sales by
7% to $4.1B–4.25B, missing estimates by 6%, and EPS by 2% to $13.0–13.5, missing estimates by 2%. The decline was
primarily driven by a decrease in the volume of MW sold, market headwinds in India, and other operational challenges. Gross
margin remained strong at 50.2% (+320bps y/y), buoyed by the 45X manufacturing production tax credit and other incentives
from the Inflation Reduction Act.
The stock was down 7% following the results. It is trading 40% off its 52-week high and is below all its key moving
averages. It has been under distribution for the past few weeks, with an Acc/Dist Rating of D and Up/Down Volume ratio
of 0.7. RS line is in a downtrend, with an RS Rating of 73.
2. FL- ACWA power (ICF.SA) signed four agreements worth $1.78B at the Future Investment Initiative in Riyadh to advance green
energy projects across multiple regions. Key deals include a $690M funding arrangement with the National Bank of Kuwait for
working capital and a $240M Shariah-compliant loan from the International Finance Corporation for solar projects in Uzbekistan.
In addition, an $800M investment will fund Gotion Power’s battery plant in Morocco and $54M will be used to develop an R&D
center in Shanghai with a focus on renewable technologies.
The stock took support along its 50-DMA and is forming the right side of a stage-four consolidation base, with the pivot 4%
away. RS line is near highs, with a strong RS Rating of 92 and an Acc/Dist Rating of B.

Energy/BM News for the Week ending 10/10/2024
FL-rated Tata Power (TTP.IN) is seeking bids for the supply of wind turbines with a total capacity of 3 GW as part of a major
expansion in the wind-solar hybrid projects segment. The plan is expected to be executed over the next three to five years and
could result in contracts exceeding INR 21K crores, positioning it as one of the sector’s largest wind turbine procurement
efforts. The project is set to boost Tata Power’s wind energy capacity and support the company’s aim to expand its renewable
energy footprint to 15 GW by 2025. The stock slightly pulled back after breaking out of a stage-two cup base and took support
along its 21-DMA. It has since bounced off its 21-DMA and is attempting to break above the pivot of INR 471.
DSV (DSV.DK), a Danish transport and logistics company, provided a trading update for Q3 FY24 and narrowed its FY24
outlook. It reported an adjusted EBIT of ~DKK 4.4B (flat y/y) in Q3. For FY24, it now expects an adjusted EBIT of DKK 16B–17B
(prior guidance: DKK 15.5B–17B). The full results are expected on October 23. The stock is breaking out of a stage-one 64-
week consolidation base and is actionable. RS line is in an uptrend, with a strong RS Rating of 87 and an Acc/Dist Rating of A-

Key Sector Updates for the Week Ending 10/03/2024
1. The index tracking energy, XLE, was the major gainer over the last three days, rising more than 4%. It reclaimed its 50-, 100-,
and 200-DMA over the last two days. Immediate resistance is around $92–94.
The movement was mainly triggered by a sharp rise in oil prices, following Iran’s attack on Israel on Tuesday and the
continuing attacks in Southern Lebanon.
Oil prices were up ~5% intraday on Tuesday but slightly pulled back and gained around 3%. It gained ~1% yesterday.
Further escalation could lead to a higher rise in oil prices.
Most oil producers rallied. Exxon Mobil (XOM), Imperial Oil (IMO), and Texas Pacific Land (TPL) were some of the
major gainers.
Oil field service providers Baker Hughes (BKR) and Halliburton Co (HAL) were some of the major gainers.
2. The U.S government will be investing ~$1.5B to build nearly 1,000 miles of new transmission lines across six states, enhancing
electric grid reliability. The four projects will increase capacity by 7,100MW in Louisiana, Maine, Mississippi, New Mexico,
Oklahoma, and Texas. Part of the Transmission Facilitation Program, this initiative aims to double the U.S. transmission
capacity to address clean energy bottlenecks and strengthen grid infrastructure. Key beneficiaries: Vistra Corp (VST), N R G
Energy (NRG), Public Svc (PEG), CenterPoint Energy (CNP), NextEra Energy (NEE), Southern Co (SO) and Entergy
Corp (ETR).