Australia’s ASX All Ordinaries Index was up 2.7% this week. The index closed at its 52-week high and is in a Confirmed Uptrend. It has six distribution days with three days set to expire next week.
Author: Saminathan Jaganathan
Global Focus Emerging
The CSI 300 fell 2.45% on lower volume and remains in Rally Attempt. The index trended down and breached the 21-DMA (5,069, +0.7%). The next level of support is the 200-DMA (4,927, -2.1%) and the next level of resistance is the 100-DMA (5,207, +3.4%).
Global Focus Frontier
Ho Chi Minh City Development Joint Stock Commercial Bank (HD Bank) is one of the top banks in Vietnam and is a constituent of the VN30 Index. Its industry-leading growth and key financial ratios, along with its exposure to the consumer finance industry, will drive its growth.
China A Shares
The CSI 300 rose 1.44% on lower volume in the first four trading sessions of the week. The market was shifted to a Rally Attempt Monday. The index consolidated and broke above its declining 21- DMA (5,071, -0.8%) Thursday, with next support at the 200-DMA (4,900, -4.1%). Immediate resistance lies at the 100-DMA (~5,200, +1.7%). January-February industrial profits increased 179% y/y and 72% from the same period in 2019. March’s official manufacturing PMI rose to 51.9 from 50.6 in February, rebounding from the previous three months’ declines. The Caixin manufacturing PMI for small companies declined to 50.6 from 50.9 in February, the lowest since May 2020 but still in expansion for 11 consecutive months. The correction of large-cap expensive stocks in New Energy, Health Care, and Consumer abated somewhat, supported by strong corporate earnings. Market sentiment was supported by strong manufacturing data and we expect the index to trade around ~5,000 in the near future. We advise investors to stay cautious in the volatile market and focus on stocks with solid fundamental and technical profiles. Watch April’s earnings season closely. There will be no Northbound trading via the HK-China Stock Connect from April 1‒April 6.
US Focus
The U.S. market remains in a Confirmed Uptrend. The S&P 500 moved back into all-time highs this week, while the Nasdaq narrowly regained its 50-DMA. The Nasdaq now faces resistance at ~13,600, with support still at the rising 100-DMA (12,959). The distribution day count declined this week, now standing at four on the S&P 500 and six on the Nasdaq with multiple additional days also set to expire next week.
European Focus
On Wednesday, the Stoxx 600 ended 0.63% above last Friday’s close. Of the 17 indices that we cover, 10 are in a Confirmed Uptrend and seven in an Uptrend Under Pressure. This week, we shifted the Netherlands to a Confirmed Uptrend after it reclaimed its prior high.
Global Focus Developed
Australia’s ASX All Ordinaries Index was flat. The index closed slightly above its 50-DMA. It is trading close to its 52-week high and is in a Confirmed Uptrend. It has eight distribution days with two days set to expire next week.
Global Focus Emerging
The CSI 300 rose 1.44% on lower volume in the first four trading sessions of the week. The market was shifted to a Rally Attempt Monday. The index consolidated and broke above its declining 21-DMA (5,071, -0.8%) Thursday, with next support at the 200-DMA (4,900, -4.1%). Immediate resistance lies at the 100-DMA (~5,200, +1.7%).
Global Focus Frontier
SN Nuclearelectrica (SNN) is the world’s largest state-owned nuclear power generation company in the unregulated market (by market cap) and sixth largest (by market cap) in the total nuclear market. Improving levels of achievement in annual investment programs and leadership in nuclear space are expected to drive growth.
China A Shares
The CSI 300 rose 0.62% on lower volume on a weekly basis after a sharp fall for six consecutive weeks. The market was shifted to a Downtrend Thursday as the index fell below March 9’s previous low of 4,917. The index trended downward for three sessions but rebounded strongly Friday, with resistance at its 21-DMA (~5,130, +1.8%) and the next level of support at the 200-DMA (~4,880, -3.1%). The one-year and five-year LRP remained at 3.85% and 4.65%, respectively, in March, unchanged for 11 months and in line with market expectations. Health Care rebounded strongly and the led the gains. The recently strong carbon-neutral theme traded in a choppy trend due to some profit-taking but still outperformed the market. The cyclical Metals, Chemical, and Energy sectors lagged. Market sentiment was dented by escalating tensions between China and the major Western economies. We expect the index to trade around ~5,000 in the near future. We advise investors to stay cautious in the volatile market and focus on stocks with solid fundamental and technical profiles. The upcoming earnings season in April will be the market’s ongoing focus.
