Mouwasat Medical Services (MMS) is a private sector hospital operator in Saudi Arabia. The company is poised to benefit from capacity expansion and the rapidly growing healthcare industry in Saudi Arabia.
Author: Sandeeep N
China A Shares
The CSI 300 fell 3.91% on lower but still above average volume and was shifted to an Uptrend Under Pressure; the number of distribution days increased to six. The index made a new high at 5,656 on Monday but trended lower and breached its 21-DMA (5,466, +2.1%). It faces immediate support at the 50-DMA (5,193, -3.0%). China’s primary short-term money rates surged to their highest level since the pandemic began a year ago, as the People’s Bank of China withdrew ~RMB 560B in public operations in the first four trading days this week. December industrial profits rose 20.1% y/y, growing for the eighth straight month and higher than the previous 15.5% y/y. All sectors fell this week, with defense, semiconductor, health care, photovoltaic, and EV stocks lagging. Capital has been flowing out of leading sectors. Market sentiment was dented by worries of tight liquidity conditions. We recommend a cautious approach in the near term given the loss of support of the 21-DMA. We advise investors to avoid any significant increase in risk exposure until indices stabilize and focus on quality ideas breaking out of proper bases.
US Focus
The U.S. market is in an Uptrend Under Pressure. The S&P 500 and Nasdaq broke below their respective 21-DMA this week in heavy volume. The next level of support is the rising 50-DMA (S&P 500: 3,715; Nasdaq: 12,720), which the S&P 500 is currently testing. The distribution day count now stands at five and three, respectively, with no further expiration next week.
European Focus
The Stoxx 600 breached 50-DMA support this week and continues to trade under pressure. The index is down 1.26% through Thursday.
Global Focus Developed
Australia’s ASX All Ordinaries Index declined 1.7% this week. It closed below its 50-DMA for the first time since its retake in November first week. On Thursday, we shifted the index to an Uptrend Under Pressure from a Confirmed Uptrend as it declined below its 21-DMA and the distribution day count increased to five.
Global Focus Emerging
The CSI 300 fell 3.91% on lower but still above average volume and was shifted to an Uptrend Under Pressure; the number of distribution days increased to six. The index made a new high at 5,656 on Monday but trended lower and breached its 21-DMA (5,466, +2.1%). It faces immediate support at the 50-DMA (5,193, -3.0%).
Global Focus Frontier
Saudia Dairy and Foodstuffs Company (Sadafco) is engaged in the manufacturing and distribution of food products. UHT Milk, tomato paste and Icecreams are its major products.
China A Shares
The CSI 300 rose 2.05% on lower but still above average volume and remains in a Confirmed Uptrend with five distribution days. The index trended higher throughout the week after last week’s pullback. It faces immediate resistance at highs of 5,645 (+1.3%). Q4 GDP rose 6.5% y/y, beating estimates of 6.2% and Q3’s 4.9%. Property investment, fixed asset investment, and value-added industry were all stronger than last month. Social retail rose 4.6% y/y in December, weaker than expectations (5.4%) and November’s reading (5.0%). One- and five-year LPR remained stable at 3.85% and 4.65%, respectively, for nine consecutive months. China’s central bank injected a net RMB 278B via reverse repo operations Wednesday, boosting market sentiment. Health Care is still leading due to the resurgence of COVID-19 cases. Nucleic acid test demand is rising rapidly. EV and photovoltaic themes also saw relative strength. Leading names gained momentum again after some correction. We expect the index to stay range-bound before breaking above previous highs of 5,645. We advise investors to stay disciplined in the recent volatile market and focus on quality stocks breaking out of proper bases.
US Focus
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq moved back into all-time highs this week and are again trading near the upper end of their respective channels. Near-term support remains the rising 21-DMA (S&P 500: 3,776; Nasdaq: 13,045). The distribution day count stands at four and three, respectively, with one day set to expire on each next week.
European Focus
On Thursday, the Stoxx 600 ended 0.75% above last Friday’s close. Of the 17 indices that we cover, 13 are in a Confirmed Uptrend and four in an Uptrend Under Pressure.
