On Thursday, the Stoxx 600 ended 3.79% below last Friday’s close. During the week, we upgraded Finland, Norway, Italy, and the Netherlands to a Confirmed Uptrend and Denmark, Sweden, Switzerland, Portugal, and Spain to a Rally Attempt. Of the 17 indices we cover, six are in a Confirmed Uptrend, seven are in a Rally Attempt, and four are in a Downtrend.
Author: Midhun Parameswaran
Global Focus Developed
Australia’s ASX All Ordinaries Index declined 13.2% this week and is 33% off its 52-week high. The index is in a Downtrend and is trading 28% below its 200-DMA.
Global Focus Emerging
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%). As the coronavirus pandemic and fear of economic recession in Europe and the U.S. continue hitting overseas markets, domestic market sentiment will suffer even though China’s market has been resilient. The CSI 300 bounced off recent lows, and we will shift the market to a Rally Attempt should it hold above this low for two days. Investors are advised to stay cautious and focus on defensive names with RS Ratings near highs.
Global Focus Frontier
Mobile World Investment (MWG.VN) is the largest consumer electronics retailer in Vietnam in terms of revenue. It operates a mobile and consumer electronics retail chain along with a grocery retail chain. The company is set to grow on the back of store optimization and margin expansion.
China A Shares
The CSI 300 surged 5.04% on lower volume this week. We shifted the market back to a Confirmed Uptrend from under pressure after seeing a strong rise Thursday. The number of distribution days fell to two, with one expiring. China’s market remains constructive and continues to stand out among global markets. The coronavirus epidemic is on track to be under control and is believed to bottom out going forward. China’s government announced the speedy construction of new infrastructure, such as 5G networks, data centers, new energy vehicle charging stations, and AI, to combat economic pressure. Investors are advised to focus on beneficial sectors and select leaders with healthy fundamental and technical profile. Meanwhile, avoid extended names because profit-taking pressure would increase should the overseas correction continued. The CSI 300 has immediate support at the 50-DMA ~4,050 (-2%), followed by the 100-DMA ~4,000 (-3%). The next resistance is January highs of ~4,220 (+2%).
US Focus
The U.S. market remains in a Rally Attempt. The S&P 500 and Nasdaq have now held above the February 28 intraday low (S&P 500: 2,855; Nasdaq: 8,264) for six sessions, despite heavy selling to close the week. Monday will mark day seven of the attempted rally with a follow-through day still needed to move to Confirmed Uptrend. If these lows are undercut, however, the market status shifts back to a Downtrend and we again look for indices to establish and hold above another new low.
European Focus
On Thursday, the Stoxx 600 ended the day 1.36% above last Friday’s close. During the week, we upgraded France, the U.K., the Stoxx 600, Denmark, Ireland, Finland, Norway, Sweden, Switzerland, Portugal, Spain, Belgium, and the Netherlands to a Rally attempt after they stayed above their previous lows. Of the 17 indices we cover, 13 are in a Rally attempt and four are in a Downtrend
Global Focus Developed
Australia’s ASX All Ordinaries Index declined 3.4% this week and is down 14% from its recent highs. The index remains in a Downtrend as it made a new low today.
Global Focus Emerging
The CSI 300 surged 5.04% on lower volume this week. We shifted the market back to a Confirmed Uptrend from under pressure after seeing a strong rise Thursday. The number of distribution days fell to two, with one expiring. China’s market remains constructive and continues to stand out among global markets. The coronavirus epidemic is on track to be under control and is believed to bottom out going forward. China’s government announced the speedy construction of new infrastructure, such as 5G networks, data centers, new energy vehicle charging stations, and AI, to combat economic pressure. Investors are advised to focus on beneficial sectors and select leaders with healthy fundamental and technical profile. Meanwhile, avoid extended names because profit-taking pressure would increase should the overseas correction continued. The CSI 300 has immediate support at the 50-DMA ~4,050 (-2%), followed by the 100-DMA ~4,000 (-3%). The next resistance is January highs of ~4,220 (+2%).
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.
