Australia’s ASX All Ordinaries Index gained 1.48% and is trading 1% off all-time highs. The index remains in a Confirmed Uptrend with three distribution days.
Author: Sandeeep N
Global Focus Emerging
The CSI 300 rose 2.25% on lower volume this week and the market remains in a Rally Attempt. The index continued to rally and retook its 100-DMA. We would like it hold above this level to remain constructive. Investors are concerned about how soon the coronavirus outbreak will peak and a follow-through day could occur should fears subside. Expectations of an interest rate cut have increased to boost China’s economy. Investors are advised to stay patient, waiting for more signals. Meanwhile, focus on sectors with guaranteed growth and select leading names with strong fundamental and technical ratings. The CSI 300 faces immediate resistance at the 50-DMA (~4,000) and is testing support along its 100-DMA at ~3,950. The next level of support is at the 200- DMA (3,860) if the 100-DMA fails.
Global Focus Frontier
National Bank of Kuwait is the leading banking group in Kuwait in terms of assets, customer deposits, and customer loans and advances. Its strong leadership position across its product offerings will pave the way for its future growth.
China A Shares
Chinese markets remain in an Uptrend Under Pressure with six distribution days. Markets will reopen on Monday following a delay due to the coronavirus.
US Focus
The U.S. market is in an Uptrend Under Pressure. The S&P 500 and Nasdaq traded sharply lower Friday, closing back below their respective 21-DMA. Distribution increased to five and four days, respectively. Two distribution days will expire on the S&P 500 and one on the Nasdaq next week. The sharply rising 50-DMA (S&P 500: 3,211; Nasdaq: 8,940) is the next level of support on both indices
European Focus
On Thursday, the Stoxx 600 closed 1.01% lower and was down 2% from last Friday’s close. Today, the Stoxx 600 is again losing 0.32% after opening in the green. The spread of coronavirus remains a threat and theme for the global markets.
Global Focus Developed
Australia’s ASX All Ordinaries Index was down 1.14% this week and is trading 2% below its all-time high. The index added two distribution days and two expired this week. It remains in a Confirmed Uptrend with four distribution days. One distribution day will expire next week.
Global Focus Emerging
Chinese markets remain in an Uptrend Under Pressure with six distribution days. Markets will reopen on Monday following a delay due to the coronavirus.
Global Focus Frontier
National Bank of Kuwait is the leading banking group in Kuwait in terms of assets, customer deposits, and customer loans and advances. Its strong leadership position across its product offerings will pave the way for its future growth.
China A Shares
The CSI 300 declined 0.2% for the week on lower volume, ending a six-week gaining streak. The market remains in a Confirmed Uptrend with four distribution days. The index has been consolidating after hitting 52-week highs, remaining constructive. We continue to be positive on the general market. A phase-one trade deal between the U.S. and China was signed, easing tensions but still leaving major problems unsolved. China’s GDP grew 6.1% y/y in 2019, the weakest growth in nearly 30 years. More stimulus is expected to boost sluggish demand. Immediate support is at ~4,100 then at ~4,000. We expect the CSI 300 to continue consolidating around 4,200, with strong resistance at ~4,400. Investors are advised to focus on quality ideas with strong expectations approaching earnings season and select those emerging from solid bases or strongly rallying from key support levels.
