SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

Equity Bottom-Up

<ul><li>What you need to know about the SG market #whatstrending feat. #whatstrending is a series addressing some of the most trending questions/topics on the markets for investors.</li><li>What’s Trending: How Airports of Thailand (AOT) Could Benefit From The Nation Waiving Visa Requirements for Chinese Tourists #2 - Increasing tourist arrivals.</li></ul>

What you need to know about the SG market #whatstrending feat. #whatstrending is a series addressing some of the most trending questions/topics on the markets for investors.What’s Trending: How Airports of Thailand (AOT) Could Benefit From The Nation Waiving Visa Requirements for Chinese Tourists #2 - Increasing tourist arrivals.

What’s Trending: How Airports of Thailand May Benefit From Visa Arrangements

Asian Insight Provider - Actionable ideas, CrossASEAN Research

Henry Soediarko

Asian Insight Provider - Actionable ideas

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

<ul>
<li>Chinese tourists are back, and the Thai government has launched a series of initiatives to woo them back.</li>
<li>Discounts to airlines offered by <a href="https://www.smartkarma.com/entities/airports-of-thailand-pcl" target="_blank" data-smartkarma-citation="entities:239:1" rel="noopener">Airports of Thailand (AOT TB)</a> will not hurt earnings much, although if extended for &gt;12 months,  AOT earnings could lag their peers.</li>
<li>Valuation is still expensive, although it is expected to normalize once earnings are back. Collapse the RV trade against <a href="https://www.smartkarma.com/entities/malaysia-airports-holdings-bhd" target="_blank" data-smartkarma-citation="entities:117:1" rel="noopener">Malaysia Airports Holdings (MAHB MK)</a> and buy for the short term.</li>
</ul>


Chinese tourists are back, and the Thai government has launched a series of initiatives to woo them back.
Discounts to airlines offered by Airports of Thailand (AOT TB) will not hurt earnings much, although if extended for &gt;12 months,  AOT earnings could lag their peers.
Valuation is still expensive, although it is expected to normalize once earnings are back. Collapse the RV trade against Malaysia Airports Holdings (MAHB MK) and buy for the short term.


Airport of Thailand (AOT): Near Term Gain

Head of Research, Krungthai XSpring

Waraporn Wiboonkanarak

Head of Research

A full service Thai brokerage

Krungthai XSpring

Krungthai XSpring is a full service broker. The company provides a wide range of investment services such as Securities Brokerage, Derivative Agent Business, Securities Borrowing and Lending, Securities Trading, Underwriting, Financial Advisory, Wealth Advisory, Private Fund Management and International Markets Securities Trading. 

In terms of credibility, Fitch Ratings has assigned Krunghtai XSpring a long-term rating of AA- and a national short-term rating of F1+ with stable outlook.

Thematic (Sector/Industry)

<ul><li>Asian bourses rebounded on the decrease in US bond yields, but the SET only climbed up limitedly before dropping sharply in the afternoon and briefly sank below 1,350 points as selling pressure targeted large cap stocks, such as energy, petrol and ICT shares.</li><li>However, the index was able to recover quickly to stay above 1,360 points, even though foreign investors kept selling.</li><li>The index initially saw a slight increase but then experienced a rapid and significant decline, indicating strong selling pressure.</li></ul>

Asian bourses rebounded on the decrease in US bond yields, but the SET only climbed up limitedly before dropping sharply in the afternoon and briefly sank below 1,350 points as selling pressure targeted large cap stocks, such as energy, petrol and ICT shares.However, the index was able to recover quickly to stay above 1,360 points, even though foreign investors kept selling.The index initially saw a slight increase but then experienced a rapid and significant decline, indicating strong selling pressure.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/airports-of-thailand-pcl" target="_blank" data-smartkarma-citation="entities:239:1" rel="noopener">Airports of Thailand (AOT TB)</a> 6m24 revenue growth rates are healthy, supported by the growth in departure passenger service charges and the coming back of concession revenues.</li>
<li>AOT labor expenses have expanded at an unprecedented level, even higher than pre-COVID levels, while <a href="https://www.smartkarma.com/entities/malaysia-airports-holdings-bhd" target="_blank" data-smartkarma-citation="entities:117:1" rel="noopener">Malaysia Airports Holdings (MAHB MK)</a> kept them under control.</li>
<li>Book profit on half of the exposure and wait for the next quarter to see if AOT labor expenses will stay high.</li>
</ul>



Airports of Thailand (AOT TB) 6m24 revenue growth rates are healthy, supported by the growth in departure passenger service charges and the coming back of concession revenues.
AOT labor expenses have expanded at an unprecedented level, even higher than pre-COVID levels, while Malaysia Airports Holdings (MAHB MK) kept them under control.
Book profit on half of the exposure and wait for the next quarter to see if AOT labor expenses will stay high.


CEO, A. Stotz Investment Research

Dr. Andrew Stotz, CFA

Quantamental Investing to beat Benchmarks

A. Stotz Investment Research

We pick stocks. We construct portfolios. All our effort is focused on how to better pick stocks and construct portfolios. We serve fund management companies, family offices, and high net worth individuals.

<ul>
<li>We highlight 14 stocks in Asia that look interesting to us based on our FVMR methodology</li>
<li>Portfolio changes: Five stock remains, nine stocks added to our portfolio</li>
<li>Since its inception, it has generated a before-fee total return of 188% versus the MSCI Asia ex Japan of 68%</li>
</ul>


We highlight 14 stocks in Asia that look interesting to us based on our FVMR methodology
Portfolio changes: Five stock remains, nine stocks added to our portfolio
Since its inception, it has generated a before-fee total return of 188% versus the MSCI Asia ex Japan of 68%


Thailand

Airports of Thailand Public Company Ltd. operates the Bangkok International Airport (Don Muang) and the New Bangkok International Airport (Suvarnabhumi).. The Company also operates provincial airports in Chiang Mai, Chiang Rai, Hat Yai, and Phuket.

Airports of Thailand (AOT TB)

Airport of Thailand (AOT): Near Term Gain

AOT looks interesting right now, as there have been a few initiatives by both the management and the local authority to win tourism market share in...

Henry Soediarko

Technical Analysis - APRIL 19, 2024

Asian bourses rebounded on the decrease in US bond yields, but the SET only climbed up limitedly before dropping sharply in the afternoon and...

Krungthai XSpring

AOT Vs MAHB: Part Deux

AOT recent results were not encouraging, especially the labor expenses to revenue ratio that has shot up, depleting its net margin. In the...

Henry Soediarko

The Stocks to Own in Asia – Vol. 44

We highlight 14 stocks in Asia that look interesting to us based on our FVMR methodology. Portfolio changes: Five stock remains, nine stocks added...

A. Stotz Investment Research

What’s Trending: How Airports of Thailand May Benefit From Visa Arrangements

What you need to know about the SG market #whatstrending feat. #whatstrending is a series addressing some of the most trending questions/topics on...

Singapore Exchange Ltd (SGX)

Airport of Thailand (AOT): Near Term Gain

AOT looks interesting right now, as there have been a few initiatives by both the management and the local authority to win tourism market share in...

Henry Soediarko

Technical Analysis - APRIL 19, 2024

Asian bourses rebounded on the decrease in US bond yields, but the SET only climbed up limitedly before dropping sharply in the afternoon and...

Krungthai XSpring

AOT Vs MAHB: Part Deux

AOT recent results were not encouraging, especially the labor expenses to revenue ratio that has shot up, depleting its net margin. In the...

Henry Soediarko

The Stocks to Own in Asia – Vol. 44

We highlight 14 stocks in Asia that look interesting to us based on our FVMR methodology. Portfolio changes: Five stock remains, nine stocks added...

A. Stotz Investment Research