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.
Author: Midhun Parameswaran
China A Shares
The CSI 300 fell 4.39% this week on lower volume and remains in a Confirmed Uptrend
with three distribution days, adding one Thursday. The index had its largest weekly loss since
April. Resistance was at Monday’s high of 4,878 (+7.3%) and support lies at the 21-DMA
(4,430, -2.5%) followed by the 50-DMA (4,150, -8.7%). China’s economic data showed
signs of recovery: GDP grew 3.2% y/y in the second quarter, higher than expectations of
2.5%. June retail sales fell 1.8% y/y, less than the expected 0.3% growth but beat May’s 2.8%
drop. Industrial profits increased 4.8% y/y in June, better than consensus of 4.5%. Real estate
investments grew 1.9% y/y for the first half of the year. June exports and imports rose 0.5% and
2.7%, y/y, respectively, both beating consensus. Escalating China-U.S. tensions and the likely
slowing pace of policy easing after the strong data dampened investor sentiment. We recommend
investors stay disciplined in this volatile market and be selective of quality stocks with strong
support levels or breaking out of pivot.
Global Focus Emerging
The CSI 300 fell 4.39% this week on lower volume and remains in a Confirmed Uptrend with three distribution days, adding one Thursday. The index had its largest weekly loss since April. Resistance was at Monday’s high of 4,878 (+7.3%) and support lies at the 21-DMA (4,430, -2.5%) followed by the 50-DMA (4,150, -8.7%).
US Focus
The U.S. market is in a Confirmed Uptrend. The S&P 500 and Nasdaq remain resilient and are
holding above their respective 10-DMAs despite Monday’s downside reversal. The S&P500 is less
than 1% below resistance at 3,233 and remains in a 6-week consolidation. Distribution count has
declined this week and currently stands at four and two days respectively.
US Focus
The U.S. market is in a Confirmed Uptrend. The S&P 500 and Nasdaq remain resilient and are
holding above their respective 10-DMAs despite Monday’s downside reversal. The S&P500 is less
than 1% below resistance at 3,233 and remains in a 6-week consolidation. Distribution count has
declined this week and currently stands at four and two days respectively.
European Focus
The Stoxx 600 has seesawed during the week, with news related to the COVID-19 outbreak and vaccine weighing on investor sentiment. Still, as of Thursday, the Stoxx 600 closed 1.4% above last Friday’s close.
Global Focus Developed
Australia’s ASX All Ordinaries Index gained 1.8% this week on lower
volume. The index is consolidating below its 200-DMA (+3%) over the past
six weeks. Two distribution days expired this week and one is set to expire next
week. It remains in a Confirmed Uptrend with two distribution days.
Global Focus Frontier
Savola Group is one of the leading strategic investment holding groups in food and retail sectors across MENAT (Middle East, North Africa and Turkey region).
China A Shares
The CSI 300 fell 6.2% on lower volume this week. We downgraded the market to a Downtrend as the index, following the global selloff, slumped 4.3% and breached its 200-DMA Monday. The index hit 52-week lows of 3,503 intraday Thursday and is testing persistent support at the gap of 3,520–3,556. If 3,520 (-3.6%) fails, there would no clear support until the 2019 lows of 2,935. The next resistance lies at the 200-DMA at 3,900 (+6.7%).
US Focus
The U.S. market is now in a Rally Attempt. Indices declined for another week, however the Nasdaq (6,686) and S&P 500 (2,280) are slightly off lows for the third consecutive session as the market status was moved to rally attempt. If indices undercut the recent lows the status will be moved back to downtrend.
