Paper stocks – Forum Della Magia http://forumdellamagia.org/ Mon, 27 Jun 2022 14:19:00 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://forumdellamagia.org/wp-content/uploads/2021/04/cropped-icon-32x32.png Paper stocks – Forum Della Magia http://forumdellamagia.org/ 32 32 Vedanta turns to LIC to raise Rs 5k cr bonds as offshore debt gets costlier https://forumdellamagia.org/vedanta-turns-to-lic-to-raise-rs-5k-cr-bonds-as-offshore-debt-gets-costlier/ Mon, 27 Jun 2022 14:19:00 +0000 https://forumdellamagia.org/vedanta-turns-to-lic-to-raise-rs-5k-cr-bonds-as-offshore-debt-gets-costlier/

At a time when higher US interest rates have made it more expensive for Indian companies to tap into foreign bond markets, mining major Vedanta Limited likely entered into a direct transaction with the Life Insurance Corporation of India to raise 4,809 crores of rupees via 10 years. obligations, several sources have confirmed Trade standard.

“The transaction is an LIC transaction, it is structured with LIC. They [Vedanta] are double AA [rated]. It is a 10 year old paper. It’s straight trade with no-coupon auctions, it’s open auctions,” a senior Treasury official said on condition of anonymity.

“The price is around 10 years G-sec plus 100 basis points – probably [to be] around 8.50%,” the source said. The benchmark 10-year government bond settled at 7.41% on Monday.

Several sources said that while the details of these structured transactions are not made public, the size of the deal indicated LIC’s involvement.

The mining giant is also planning to raise Rs 1,800-2,000 crore through the sale of 18-month papers, although the sources did not mention the investors involved in the fundraising.

Emails sent by Trade standard to Vedanta and LIC have not received responses as of press time.

According to sources, while the deal on the 10-year bond was reached, talks were still ongoing for the 18-month bond.

Vedanta plans to use the proceeds to prepay or pay down existing debt and for capital expenditures. The company last raised funds via local currency bonds in December 2021.

Earlier this calendar year, agencies such as Crisil and India Ratings upgraded Vedanta to AA.

Last week, Vedanta Resources’ dollar-denominated debt maturing in 2024 suffered its biggest drop as the rupee weakened to record lows. The national currency settled at an all-time low of 78.39 to the dollar on June 22. So far this calendar year, the rupee has lost about 5% against the greenback.

The weak rupiah amid higher US interest rates, high crude oil prices and record outflows of Indian stocks abroad has made it more expensive for companies to service their external debt.

As of February 2021, Vedanta had raised $1.2 billion via offshore bonds.

India’s head of ratings and research, Soumyajit Niyogi, said headwinds that had given Indian borrowers easy access to offshore markets and helped them tap into cheaper funds over the past two years, have now turned into headwinds.

“Rates in advanced economies have risen significantly, particularly at the shorter end of the curve, which is largely tied to floating rate borrowing in offshore markets. Rupee weakness has further aggravated the arithmetic,” Niyogi said.

Data compiled by research bureau Business Standard showed that from $6.7 billion raised in March 2022, offshore borrowing by Indian companies fell to just $50 million in June 2022.

It was in March 2022 that the US Federal Reserve began its current monetary tightening cycle, raising interest rates by 25 basis points. Since then, the Fed has raised rates an additional 125 basis points.

The cost of borrowing for Indian businesses has also increased in recent months as the Reserve Bank of India has tightened interest rates amid high inflation. The RBI has raised the repo rate by a total of 90 basis points since May. With rising interest rates on funds raised in financial markets, borrowers are increasingly resorting to bank loans. According to RBI data, bank credit growth was 13.1% in early June, the highest in three years.

The yield on the benchmark 10-year government security has climbed 96 basis points so far in 2022, with a 57 basis point hike to come between April and June. Government bond yields are the pricing benchmarks for corporate bonds.

According Bloomberg data, yields on AAA-rated 10-year corporate bonds rose from 7% at the March 31 close to 7.77% on June 24. Over the same period, yields on AA-rated 10-year corporate bonds rose from 7.79% to 8.48%.

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Weekly review: stocks will react positively to the agreement with the IMF https://forumdellamagia.org/weekly-review-stocks-will-react-positively-to-the-agreement-with-the-imf/ Sat, 25 Jun 2022 11:24:45 +0000 https://forumdellamagia.org/weekly-review-stocks-will-react-positively-to-the-agreement-with-the-imf/

KARACHI: Pakistani stocks are likely to react positively over the next week due to the expected agreement with the International Monetary Fund (IMF), as the country has met almost all requirements.

Analysts at Arif Habib Limited said clarity should emerge next week on some economic policies that should help stock market sentiment.

“It appears that Pakistan has met all the conditions to enter the IMF program to receive the $1 billion tranche,” they added.

READ MORE: Pakistani stocks tumble over imposition of super tax

Once the package is adopted, other sources of foreign exchange reserves should also open up, which should relieve some pressure on declining foreign exchange reserves.

A Chinese loan of $2.3 billion has already been rolled over and therefore the market is expected to be positive in the coming week.

The benchmark KSE-100 of the Pakistan Stock Exchange (PSX) is currently trading at a PER of 4.1x (2022) against the Asia-Pacific regional average of 11.8x while offering a dividend yield of around 9.6% against around 2.7% offered by the region.

Analysts said the market started on a negative note this week due to uncertainty surrounding the IMF program, with the index losing 300 DoD points. However, sentiment turned positive when a Chinese consortium of banks signed a $2.3 billion loan facility agreement and the Economic Coordinating Committee (ECC) approved the second installment of Rs 96 billion to the Independent Power Producers (IPPs) of the 2002 Energy Policy.

READ MORE: Pakistani stocks rally on Chinese loan facility

Additionally, the finance minister announced that an IMF deal was imminent, which also helped boost investor sentiment.

However, in the last trading session, the government announced a 10% super tax on 13 major sectors along with an additional 4% levy on banks, causing the market to spiral and hit an intraday low. of 40,555 points.

Separately, SBP reserves fell by $748 million to $8.24 billion, putting further pressure on the Pakistani Rupee (PKR), which fell to an all-time low of 211.93 for a dollar, but the announcement of the agreement with China helped the PKR to recover. some lost ground and close at 207.48 for the week.

The market closed at 41,052 points, down 1,089 points (down 2.58%) Week on Week (WoW).

Negative sector contributions came from i) Banks (296 points), ii) E&P (194 points), iii) Cement (194 points), iv) Fertilizers (120 points) and v) Textile Composites (61 points) .

READ MORE: Pakistani stocks lost 68 points on rupee depreciation

While the sectors that contributed positively are i) Tobacco (12 points), ii) Insurance (12 points), and iii) Paper & Cardboard (8 points).

The negative contributors at certificate level were UBL (97 points), POL (88 points), ENGRO (83 points), LUCK (79 points) and HUBC (75 points). Meanwhile, the positive contribution in terms of certificates came from EFUG (20 points), KEL (18 points), KAPCO (13 points), PAKT (12 points) and PKGS (8 points).

READ MORE: Pakistani stocks gain 749 points on IMF program hopes

Overseas sales were seen this week reaching $2.39 million compared to a net sale of $1.91 million last week. Significant sales were seen in All Other Sectors ($3.5 million) and Banking ($1.9 million). On the local front, purchases were reported by individuals ($7.0 million) followed by other organizations ($3.4 million). Average volumes reached 301 million shares (up 73% WoW) while the average traded value was $44 million (up 72% WoW).

READ MORE: Rupee slides to new low at Rs211.93 against USD

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Here is the anti-breeding portfolio of public pensions https://forumdellamagia.org/here-is-the-anti-breeding-portfolio-of-public-pensions/ Thu, 23 Jun 2022 01:38:20 +0000 https://forumdellamagia.org/here-is-the-anti-breeding-portfolio-of-public-pensions/

It is time for public pension funds to abandon active management and alternative investments and adopt a single portfolio.

In a new article, Richard Ennis, founder of consultancy EnnisKnupp, says America’s public pension plans have failed to leverage the $6 trillion in assets they hold to become what he calls the producers of the cheapest returns on investment. Instead, they locked themselves into an expensive portfolio model, which includes a huge allocation to alternative investments and failed to deliver good risk-adjusted returns.

Public pensions now have an average equity exposure of around 70% in highly diversified portfolios. It’s not bad in itself. But their herd behavior has also resulted in “over a trillion dollars [in] alternative investments after alts stopped adding value to institutional portfolios more than 10 years ago,” Ennis wrote in the article, titled “A Universal Investment Portfolio for Public Pension Funds: Leveraging the best of our herding methods”.

“And yet, the heavy reliance on active management, and alts in particular, has cost funds dearly. Managers of public funds must understand that their strength is not in the active management of money. Rather, it is their potential to become the cheapest return on investment producers on the planet,” Ennis continued.

Ennis outlines the benefits to public pensions of implementing a standard, universal investment portfolio, attributing many of the current model’s weaknesses to well-known behavioral biases and wishful thinking. Institutions, after all, are always run by humans.

“It helps if we can learn to live with what we can reasonably expect from the markets, and not harbor hopes for something more when it’s not in the cards. Smart institutional investing also requires us to recognize our strengths and weaknesses,” Ennis wrote.

In the 13 years ending June 30, 2021, 59 U.S. public pension funds have significantly underperformed a global benchmark — an average of 1.21% per year. In fact, the underperformance essentially matched the fund’s average expense ratios, which hit 1.2%, according to the newspaper.

Additionally, Ennis determined that only one of the funds created significant alpha, or risk-adjusted returns above the benchmark, often a measure of investment talent. Thirty-four of them generated negative alpha. “The analysis points to a systemic problem rather than just a series of bad luck,” the document claims.

Digging deeper, Ennis finds that public pensions are not benefiting from their large allocations to alternatives. The performance of these portfolios is entirely explained by equities and bonds. The effort and manpower required for alts is essentially wasted. “The conclusion that the correlation between a fund composite with an average exposure to alts of 30% and a benchmark of tradable securities is nearly perfect goes against the popular notion that the return properties of alts differ significantly from those of stocks and bonds.

Given the failures, Ennis is hiring an asset manager to create and market what he calls a universal investment portfolio for public pension funds. The passive model would mirror how pension funds as a whole are allocated, with expenses decreasing as assets under management increase. Ennis predicts that the model, which would have 28.6% U.S. bonds, 51.8% U.S. equities, 7% international equities with currency hedging and 12.6% non-U.S. equities, could potentially rank in the top quartile of funds due to its low costs. And it could be profitable for an asset manager. “When the UIP fund reaches one trillion in assets under management, a one basis point fee would produce $100 million in revenue. I think a manager with deep passive capabilities could make a nice profit on a fee like this for managing a single portfolio,” Ennis wrote.

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Why is the Hold strategy now suitable for international stocks on paper (IP) https://forumdellamagia.org/why-is-the-hold-strategy-now-suitable-for-international-stocks-on-paper-ip/ Tue, 21 Jun 2022 16:03:00 +0000 https://forumdellamagia.org/why-is-the-hold-strategy-now-suitable-for-international-stocks-on-paper-ip/

international paper company Intellectual property is benefiting from strong demand for corrugated and corrugated board packaging, fluff pulp and the growth of e-commerce. The benefits of price realization across all segments of the company and the expected contribution from Building a Better IP initiatives will offset higher costs and support margins.

History of positive results: International Paper, a Zacks No. 3 (Hold) company, has a trailing four-quarter earnings surprise of 7.3%, on average.

Positive growth projections: The company’s profit estimate for the current year is $4.76, suggesting 48.7% year-over-year growth.

Solid financial position: The company’s efforts to reduce its level of debt seem encouraging. International Paper’s total debt has fallen from $11 billion at the end of 2016 to $5.6 billion at the end of 2021. The company’s total debt-to-equity ratio has declined significantly over the past few years and stood at 0.38 as of March 31, 2022. Its ratio multiplied by interest earned was 4.4. The company has limited short-term maturities, with about $900 million due over the next five years.

Growth engines

The benefits of strong price realization through price increases are helping International Paper counter higher input and energy, chemical and distribution costs. This will help the company support its margins in the coming quarters. The company expects margins in its segments to increase in the second quarter, with further expansion in the second half as price realization outpaces rising input costs. The company had the highest maintenance outage quarter of the year, expecting to complete 70% of its planned maintenance in the first half of the year.

IP is committed to generating an additional $350-400 million in net income by the end of 2024. These include approximately $300 million in cost reduction initiatives and $50 million in dollars from trade and investment initiatives.

International Paper forecasts EBITDA to be between $3.1 billion and $3.4 billion in 2022, compared to $2.6 billion in 2021. The company made a profit of $40 million from Building a Better initiatives IP in the first quarter of 2022 and is on track to achieve the incremental gross profit target of $200-225 million in 2022.

IP continues to witness strong demand for corrugated and containerboard packaging in its industrial packaging segment, as it plays a vital role in the supply chain bringing essential products to consumers. . Its demand for e-commerce remains strong. A favorable supply-demand context for fluff pulp is boosting the global cellulose fiber segment.

Last October, International Paper completed the spin-off of the printing papers segment into a stand-alone, publicly traded company, Sylvamo SLVM. IP received a $1.4 billion payment from Sylvamo. The company retained up to 19.9% ​​of the shares of the new company. In Q1 2022, the company monetized approximately half of its investment with proceeds of $144 million, reducing the company’s stake to approximately 10.5%. This spin-off will allow International Paper to focus on its industrial packaging segment and capitalize on the growing demand for corrugated packaging, reduce costs and improve profits. It also supports the company’s goal of streamlining and simplifying its organization to form a packaging-focused business.

International Paper expects chemical, energy and distribution costs to remain elevated in the second quarter of 2022. Significant rail, road and sea transportation congestion due to harsh shipping conditions will continue at short term.

Price performance

International Paper shares have lost 6.4% over the past six months, versus 10.3% for the sector.

Image source: Zacks Investment Research

Actions to Consider

Some top-ranked stocks in the base materials space are Allegheny Technologies Inc. ATI and Nutrien Ltd. NTR, each shows a Zacks rank #1 (Strong Buy), at present. You can see the full list of today’s Zacks #1 Rank stocks here.

Allegheny forecasts a profit growth rate of 869.2% for the current year. The Zacks consensus estimate for ATI’s earnings for the current year has been revised up 27.3% in the past 60 days.

Allegheny’s earnings have exceeded Zacks’ consensus estimate in each of the past four quarters. It has a surprise on earnings for the last four quarters of about 128.9% on average. ATI gained about 15.6% in one year.

Nutrien forecasts a profit growth rate of 163.2% for the current year. The Zacks consensus estimate for NTR’s current-year earnings has been revised up 27.5% in the past 60 days.

Nutrien’s earnings have exceeded the Zacks consensus estimate in three of the past four quarters, averaging 5.8%. NTR gained 42.9% in one year.

Zacks names ‘only one best choice for doubling up’

From thousands of stocks, 5 Zacks experts have each picked their favorite to skyrocket by +100% or more in the coming months. Of these 5, Research Director Sheraz Mian selects one to have the most explosive advantage of all.

It’s a little-known chemical company that’s up 65% year-on-year, but still very cheap. With relentless demand, rising earnings estimates for 2022 and $1.5 billion for stock buybacks, retail investors could step in at any time.

This company could rival or surpass other recent Zacks stocks that are expected to double, such as Boston Beer Company which jumped +143.0% in just over 9 months and NVIDIA which jumped +175.9% in one. year.

Free: See our best stock and our 4 finalists >>

Click to get this free report

Allegheny Technologies Incorporated (ATI): Free Inventory Analysis Report

International Paper Company (IP): Free Stock Analysis Report

Nutrien Ltd. (NTR): Free Stock Analysis Report

Sylvamo Corporation (SLVM): Free Stock Analysis Report

To read this article on Zacks.com, click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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After recently buying, insiders of Lee & Man Paper Manufacturing Limited (HKG:2314) must be dismayed to see the company’s market capitalization plummet to HK$14 billion https://forumdellamagia.org/after-recently-buying-insiders-of-lee-man-paper-manufacturing-limited-hkg2314-must-be-dismayed-to-see-the-companys-market-capitalization-plummet-to-hk14-billion/ Fri, 17 Jun 2022 22:38:54 +0000 https://forumdellamagia.org/after-recently-buying-insiders-of-lee-man-paper-manufacturing-limited-hkg2314-must-be-dismayed-to-see-the-companys-market-capitalization-plummet-to-hk14-billion/

To get an idea of ​​who actually controls Lee & Man Paper Manufacturing Limited (HKG:2314), it is important to understand the ownership structure of the company. With a 73% stake, individual insiders own the most shares in the company. In other words, the group faces the maximum upside potential (or downside risk).

Notably, insiders recently bought shares. However, with the market capitalization down HK$1.2 billion over the past week, their expectations have been far from met.

Let’s take a closer look at what different types of shareholders can tell us about Lee & Man Paper Manufacturing.

Check out our latest analysis for Lee & Man Paper Manufacturing

SEHK: 2314 Ownership Breakdown June 17, 2022

What does institutional ownership tell us about Lee & Man papermaking?

Institutional investors typically compare their own returns to the returns of a commonly tracked index. They therefore generally consider buying larger companies that are included in the relevant benchmark.

We can see that Lee & Man Paper Manufacturing has institutional investors; and they own a good part of the shares of the company. This implies that analysts working for these institutions have reviewed the stock and like it. But like everyone else, they can be wrong. If multiple institutions change their minds on a stock at the same time, you could see the stock price drop quickly. So it’s worth checking out Lee & Man Paper Manufacturing’s earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
SEHK: 2314 Profit and Revenue Growth June 17, 2022

We note that hedge funds have no significant investment in Lee & Man Paper Manufacturing. Looking at our data, we can see that the largest shareholder is CEO Man Bun Lee with 31% of shares outstanding. Man Chun Lee is the second largest shareholder with 31% of the common shares and Wan Lee owns about 9.7% of the company’s shares. Interestingly, the second largest shareholder, Man Chun Lee, is also Top Key Executive, again, indicating strong insider ownership among the company’s top shareholders.

To make our study more interesting, we found that the top 2 shareholders hold a majority stake in the company, which means they are powerful enough to influence company decisions.

Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be obtained by studying the feelings of the analyst. There are plenty of analysts covering the stock, so it might be interesting to see what they are predicting as well.

Insider ownership of Lee & Man Paper Manufacturing

The definition of company insiders can be subjective and varies from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. The management of the company runs the company, but the CEO will answer to the board of directors, even if he is a member of it.

Insider ownership is positive when it signals that executives think like the true owners of the company. However, strong insider ownership can also give immense power to a small group within the company. This can be negative in certain circumstances.

Our most recent data indicates that insiders own the majority of Lee & Man Paper Manufacturing Limited. This means they can collectively make decisions for the business. This means insiders have a very significant HK$10 billion stake in this HK$14 billion business. Most would say this is a positive, showing strong alignment with shareholders. You can click here to see if they have sold their stake.

General public property

The general public, including retail investors, owns 19% of the company’s capital and therefore cannot be easily ignored. While this size of ownership may not be enough to sway a policy decision in their favor, they can still have a collective impact on company policies.

Next steps:

While it is worth considering the different groups that own a business, there are other, even more important factors. Take for example the ubiquitous specter of investment risk. We have identified 2 warning signs with Lee & Man Paper Manufacturing, and understanding them should be part of your investment process.

If you prefer to find out what analysts are predicting in terms of future growth, don’t miss this free analyst forecast report.

NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month in which the financial statements are dated. This may not be consistent with the annual report figures for the full year.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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Stocks return to black https://forumdellamagia.org/stocks-return-to-black/ Wed, 15 Jun 2022 18:00:00 +0000 https://forumdellamagia.org/stocks-return-to-black/

The Dhaka Stock Exchange posted a four-day decline yesterday, on ceramics, travel, leisure, services and property stocks.

The DSEX, the benchmark index of Bangladesh’s premier stock exchange, added 13.12 points, or 0.20%, to close at 6,374.

For all the latest news, follow the Daily Star’s Google News channel.

The DSES index, which includes Sharia-based listed companies, rose 0.14% to 1,389.59 and the DS30 index, which represents the best performing stocks on the exchange, gained 0.04% at 2,301.92.

Revenue was Tk 943 crore, up 7.89% from Tk 874 crore a day ago. Of the stocks traded that day, 175 rose, 161 fell and 46 were unchanged.

“Bargain hunters have shown interest in buying sector-specific stocks at lucrative prices as the market has lost 119 points since the unveiling of the budget for the next fiscal year. Some of the stocks have caught the eye of investors due to fiscal incentives,” International Leasing Securities Ltd said in its daily market review.

The values ​​of ceramics, travel, leisure, services and real estate have largely increased, while the shares of general insurance, jute and food have declined.

Among individual companies, Meghna Insurance and RAK Ceramics jointly topped the list of winners with a gain of 10%.

Hakkani Pulp and Paper Mills, KDS Accessories, Legacy Footwear, Fu-Wang Ceramic Industries and Coppertech Industries also posted strong gains.

Bangladesh Industrial Finance Company suffered the biggest decline at 5.88%. Bangladesh General Insurance Company lost 5.48% and Purabi General Insurance Company lost 5.33%.

Beximco Ltd was the most traded stock on the day with its shares worth Tk 65 crore traded. RAK Ceramics, Shinepukur Ceramics, MI Hospital Requisite Manufacturing, IPDC Finance and Bangladesh Shipping Corporation also witnessed strong trade.

The Chittagong Stock Exchange also rose.

CASPI, the port city’s main stock index, jumped 61.97 points, or 0.33%, to close the day at 18,772.

Of the issues, 131 advanced, 128 declined and 39 saw no price movement.

Revenue, however, fell over 23% to Tk 42.6 crore. It was 55.54 crore Tk on Tuesday.

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As the world reopens, is it time for Singapore travel stocks to shine? https://forumdellamagia.org/as-the-world-reopens-is-it-time-for-singapore-travel-stocks-to-shine/ Tue, 14 Jun 2022 01:06:50 +0000 https://forumdellamagia.org/as-the-world-reopens-is-it-time-for-singapore-travel-stocks-to-shine/

HOSPITALITY ALWAYS “ON THE TABLE”

On the other hand, analysts seem a little more optimistic about the outlook for the hotel sector.

RHB Singapore, for example, has Genting Singapore as one of its favorite stock picks for the coming year. Along with Singapore’s borders reopening to fully vaccinated people, the easing of travel restrictions by more countries is likely to continue and boost the integrated resort operator’s recovery, he said.

To be sure, the recovery may still miss a “last leg of the trail” as strict travel measures remain in key North Asian markets, namely China and Japan, which accounted for a third of pre-pandemic footfall in gaming and non-gaming facilities, CGS-CIMB analyst Tay Wee Kuang said in a report.

“resumption of pre-COVID operations remains on the table,” albeit at a slower pace.

Beyond that, business trusts that have hotels in their portfolios are also in the good books of some market analysts.

In addition to seeing better occupancy levels and room rates as travel demand grows, companies like Ascott Residence Trust and CDL Hospitality Trusts have also been looking at the “extended stay” asset class over the past year. the pandemic as part of diversifying their portfolios, Natalie Ong of Phillip Securities Research told CNA.

“They haven’t been idle. Instead, they tried to bolster their portfolio by incorporating other sources of stable income,” the research analyst said, adding that most hotel trusts are still trading around 15-20% below pre-pandemic levels.

Opportunities also exist in other parts of the Singapore market, analysts said, although they would advise investors to remain defensive amid rising inflation and a confluence of external growth risks.

“We expect the market to remain volatile with heightened external risks,” CGS-CIMB analysts said in their Singapore strategy report. “We favor a short-term defensive stance in REITs (real estate investment trusts) and high-dividend-yielding stocks and remain constructive on capital goods.”

The tech and banking sectors have also “returned to mid-range valuations and priced in some of the slower growth expectations,” presenting long-term opportunities, they added.

RHB, in a report dated June 1, reiterated its “dumbbell portfolio strategy, with a healthy weighting to defensive stocks.”

“The defensive sense when things go wrong, the business is still making money and that cash flow doesn’t completely disappear,” Mr Jaiswal said.

These include banks that benefit from the current environment of rising interest rates, companies that are less affected by inflationary pressures such as the commodities sector, as well as those that can continue to increase their margins. such as local telecommunications company Singtel or taxi operator ComfortDelGro.

Morgan Stanley equity analysts Wilson Ng and Derek Chang said Singaporean banks are “particularly well placed” to weather the headwinds of cost inflation and deliver sustained earnings and dividend growth, given that they are “positively influenced by both the rise in interest rates and the reopening theme”. .

“Valuation multiples do not appear to be overstated, so we believe banks may be more viable alternatives to real estate and travel stocks to hedge against high inflation,” they wrote in a report from the May 12.

Besides banks, Mr. Ng and Mr. Chang also like energy stocks, while tech stocks can “offer a secular growth story at much more attractive valuations than before.”

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Celebrating 70 years of stock returns https://forumdellamagia.org/celebrating-70-years-of-stock-returns/ Sun, 12 Jun 2022 10:13:00 +0000 https://forumdellamagia.org/celebrating-70-years-of-stock-returns/

The Queen’s Platinum Jubilee celebrations were something. There were a lot of barbecues, parties and toasts to Her Majesty in my part of the country.

But I also watched and read some of the media coverage of national events, which included a good deal of reflection on the enormous economic, social and cultural changes of the past 70 years.

Perhaps rightly so, in this context, more of my viewing was on digital devices than on traditional television, and all of my reading was online, rather than via the quaint old medium of newsprint.

Overcome the ups and downs

Some things haven’t changed. The Queen has remained an enduring figure of resilience through the royal family’s ups and downs, and Britain’s economy has thrived, weathering a number of major crises and recessions.

Likewise, despite some ups and downs, we can also celebrate 70 years of impressive stock returns.

Back to 1952

The UK was a very different place when young Princess Elizabeth was crowned Queen Elizabeth II in 1952.

Winston Churchill was in his second term as Prime Minister; Alan Turing, heroic wartime computer scientist, was found guilty of “gross indecency between men;” Newcastle United won a then-record fifth FA Cup; and, by the end of the year, the Great London Smog blanketed the capital, causing chaos and around 4,000 deaths.

The FTSE100the best-known stock market index in the UK today, didn’t even exist in 1952. FT30 (also called FT Ordinary Share Index) was the index at the time.

British economic barometer

The FT30 was designed by the editor and chief editor of the Financial news in 1935. It was originally known as the Financial News 30-Share Index, until the newspaper merged with the FinancialTimes in 1945.

The index has been designed to track the performance of a selection of companies important to the UK economy. It was an unweighted geometric average of 30 such stocks. Changes to constituents were (and still are) infrequent, usually when taking over a business. And a replacement stock is chosen by the FT editor to maintain the index as a barometer of UK economic performance.

industrial country

In its early days, the FT30 was dominated by heavy industry sectors, such as coal mining, steel and textiles. Names like Bolsover Colliery, Dorman Long and Fine Spinners and Doublers.

Although post-war nationalisations removed some stocks from the index, replacements like shipbuilder Swan Hunter meant the prominence of industrialists had changed little when the Queen took the throne in 1952.

Transition to service industries

Reflecting the significant change in the complexion of the UK economy over the next 70 years, there was a shift in the composition of the FT30 from heavy industry to service sectors.

The financial sector (originally excluded from the index) now includes representatives from banking, insurance and asset management, including Lloyd’s and Legal and general. BT and Vodafone are also members. Other service companies include credit checker Experianmedia group TVIretailer Next and advertising agency WPP.

70 years of stock market returns

There were big falls in the stock markets during the Queen’s reign. The FT30 lost 73% of its value around the 1970s recession. It also suffered major declines caused by the dotcom bust, the financial crisis and the Covid pandemic.

Nevertheless, according to the asset manager SchrödersUK stocks have returned just under 12% a year since 1952, almost double the 6% that savers have earned in cash a year.

Some investors may have enjoyed even better returns. Those who have avoided structurally declining heavy industry sectors in the UK and/or have diversified their portfolios with stocks from higher growth markets, such as the US.

Looking ahead to the next 70 years

The historic long-term wealth-creating power of equity ownership is why our analysts here at The Motley Fool focus on identifying large UK (and US) companies in sectors that have structural drivers. of growth, with a view to buying and holding their shares for many years.

Like the Queen, and most of you reading this column, I won’t be in seven decades. However, I am as confident as can be that current investors, and those of future generations, will reap the rewards of patient, long-term investing in the stock market.

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Consumer Stocks Fall, Led by Consumer Discretionary Stocks – Consumer Roundup https://forumdellamagia.org/consumer-stocks-fall-led-by-consumer-discretionary-stocks-consumer-roundup/ Thu, 09 Jun 2022 21:35:01 +0000 https://forumdellamagia.org/consumer-stocks-fall-led-by-consumer-discretionary-stocks-consumer-roundup/

Stocks of retailers and other consumer companies were weaker, led by consumer discretionary stocks, while consumer staples stocks outperformed the broader market.

“People need deodorant, paper towels and cereal even when they need to cut back,” said Ryan Belanger, chief executive of Claro Advisors, a Boston-based wealth management firm.

U.S. auto safety regulators have stepped up their investigation into emergency scene crashes involving Tesla’s Autopilot, a critical step in determining whether to order a safety recall. The National Highway Traffic Safety Administration said it was expanding an investigation it began last August into a series of crashes in which Tesla vehicles using Autopilot struck first aid vehicles stopped for traffic emergencies. NHTSA also said it has expanded its review of Autopilot to include a wider range of crashes, not just those at emergency scenes.

Meanwhile, lawmakers in the European Parliament on Wednesday approved a plan to cut greenhouse gas emissions that includes a proposal to ban the sale of new cars running on conventional engines after 2035. This is putting further pressure on automakers and suppliers to accelerate a shift more have already switched from conventional cars to electric vehicles.

Target raised its quarterly dividend by 20%, just days after the retailer cut its outlook as high inventories weighed on its earnings.

A group of Trader Joe’s employees in Massachusetts have filed a petition with a federal agency to hold a union election, joining other American workers who are organizing to demand higher wages and better benefits.

 Write to Amy Pessetto at amy.pessetto@dowjones.com 

(END) Dow Jones Newswire

06-09-22 1734ET

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Sensex loses 627 points; Clever below 16,400 https://forumdellamagia.org/sensex-loses-627-points-clever-below-16400/ Tue, 07 Jun 2022 09:03:00 +0000 https://forumdellamagia.org/sensex-loses-627-points-clever-below-16400/ Benchmarks continued to trade with heavy losses mid-afternoon. The Nifty slipped below 16,400 again. Oil & Gas and Auto stocks bucked the trend while Consumer Durables, Media and Real Estate stocks fell. Negative global indices and continued selling by FIIs dented sentiment. Investors were also cautious ahead of Wednesday’s RBI policy outcome and Friday’s expected US inflation data.

As of 2:25 p.m. IST, the barometer index, the S&P BSE Sensex, was down 627.59 points or 1.13% at 55,047.73. The Nifty 50 index fell 174.40 points or 1.05% to 16,395.15.

In the broader market, the S&P BSE Mid-Cap Index lost 1.22% while the S&P BSE Small-Cap Index fell 0.71%.

Sellers outnumbered buyers. On the BSE, 1,207 stocks rose and 2,020 stocks fell. A total of 130 stocks remained unchanged.

The Monetary Policy Committee (MPC) of the RBI meets from June 6 to 8, 2022. Following the off-cycle rate hike of 40 basis points on May 4, 2022, the RBI is expected to raise the policy rate further.

Numbers to follow:

The yield on the benchmark 10-year Federal paper rose to 7.533% from 7.5% at the close of the previous trading session.

India’s benchmark 10-year bond yield hit a three-year high ahead of the RBI policy announcement due tomorrow.

The yield on the benchmark 10-year bond 6.54 GS 2032 rose to 7.53%, up 3 basis points from its previous close and the highest level since March 2019.

On the foreign exchange market, the rupee fell slightly against the dollar. The partially convertible rupee was hovering at 77.7250, compared to its close of 77.66 in the previous trading session.

MCX Gold futures for settlement (June 3, 2022) fell 0.07% to Rs 50,836.

The US dollar index (DXY), which tracks the value of the greenback against a basket of currencies, rose 0.10% to 102.54.

In the commodities market, Brent crude for August 2022 settlement rose 41 cents or 0.34% to $119.92 a barrel. Oil prices rose slightly on the expected recovery in demand in China as it eased tough Covid restrictions.

Zoom Index:

The Nifty Oil & Gas Index rose 0.78% to 8,095.40. The index rose 3.82% in four trading sessions amid firm crude oil prices.

Among the components of the Nifty Oil & Gas index, Oil & Natural Gas Corpn (+5.26%), Oil India (+4.21%), GAIL (India) (+2.19%), Adani Total Gas (+1.07%) and Reliance Industries up 0.48% were the main gainers.

Actions in the spotlight:

Fitch Ratings has affirmed the Adani Ports and Special Economic Zones (APSEZ) long-term foreign currency issuers (IDR) default rating at “BBB-“. The outlook is “negative”, the rating agency said. Fitch Ratings said APSEZ’s underlying credit profile reflects its status as India’s largest commercial port operator, with top-notch operational efficiency. The issuer has demonstrated throughput resilience through economic cycles, including the current downturn related to the Covid-19 pandemic.

IRB Infrastructure Developers announced on Monday that it has offered the Vadodara to Kim Expressway project, being developed under the Hybrid Annuity Model (HAM), to IRB InvIT Fund. The Vadodara Kim Section, part of the Delhi-Mumbai Expressway (DME), is 23,740 km long and has a project cost of Rs 2,094 crore. The project recently received a provisional COD and is generating revenue . IRB Infra’s Board of Directors has approved the preliminary non-binding proposal to transfer said project to the IRB InvIT fund, which is a listed and publicly offered infrastructure investment trust sponsored by the company.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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