Category

Energy Sector

Brief Energy: Weekly Oil Views: Rising Mideast Tensions Dwarfed by Demand Growth Worries and more

By | Daily Briefs, Energy Sector

In this briefing:

  1. Weekly Oil Views: Rising Mideast Tensions Dwarfed by Demand Growth Worries

1. Weekly Oil Views: Rising Mideast Tensions Dwarfed by Demand Growth Worries

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Two oil tanker attacks on June 13 in the Gulf of Oman, a key waterway used for shipping oil to the world by seven major Middle Eastern producers, jolted the market. The US and Saudi Arabia blamed Iran, though the latter vehemently denied having any role.

The fact this followed a similar incident on May 12 involving four oil tankers off the UAE port of Fujairah, and amid increased attacks on Saudi infrastructure by the Iran-backed Houthi rebels in Yemen in recent weeks, points to a new high in geopolitical tensions in the Middle East.

And yet, benchmark Brent crude recorded its fourth successive weekly loss, closing at $62.01/barrel on Friday. The “fear premium” in crude was kept in check by oil market bears, who have rapidly soured over the prospect of global consumption growth this year amid economic headwinds unleashed by trade wars and tensions.

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Brief Energy: Weekly Oil Views: Barry Didn’t Chase the Bears Away and more

By | Daily Briefs, Energy Sector

In this briefing:

  1. Weekly Oil Views: Barry Didn’t Chase the Bears Away
  2. U.S. Equities: Mixed Signals Punctuate Muted Outlook
  3. Weekly Oil Views: Sentiment Defaults to Demand Growth Fears
  4. India Equity Derivatives – The Tail Wags the Dog
  5. All-Time Closing Highs Fails To Impress

1. Weekly Oil Views: Barry Didn’t Chase the Bears Away

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It is the Atlantic hurricane season and severe tropical storms in the US Gulf of Mexico, depending on the damage and disruption to oil facilities caused by them, can be expected to splash the market with bouts of bullishness.  

The approach of Tropical Storm Barry (which reached hurricane strength as it made landfall in Louisiana), helped by the report of an unexpectedly large weekly drawdown in US crude inventories, prompted a 4-4.5% spike in crude prices last Wednesday. But the rally stalled as the week drew to a close.

It may have been expectations of no major disruption to oil facilities in the wake of Barry as the picture on the storm became clearer, that put a lid on crude’s rise. But perhaps more significantly, the market remained focused on the oversupply prognosis of all three major forecasters — the EIA, OPEC and IEA — in their latest monthly reports last week.

The oil bears may have temporarily taken shelter from Barry, but with the disruption to crude and refined product facilities in and around the US Gulf expected to be minor (if any) and short-lived, we expect them to remain in control.

2. U.S. Equities: Mixed Signals Punctuate Muted Outlook

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While the S&P 500 has hit marginal new highs, price action of the S&P 500 and the price and RS of several Sectors/subsectors is similar to the periods leading up to the October 2018 and May 2019 breakdowns. We draw several similarities in today’s report, and we continue to believe upside is likely to be muted from here barring additional positive developments.

3. Weekly Oil Views: Sentiment Defaults to Demand Growth Fears

The oil market is keeping global economic headwinds firmly in sight, with weakening manufacturing activity across several parts of the world in June serving a fresh reminder. 

Crude prices tend to jump if there is a big weekly drawdown in crude stocks, or a fresh incident triggers a spike in tensions in the oil-rich Middle East. But the rallies don’t seem to have staying power. Market sentiment defaults to bearishness from demand growth fears. 

When the words “tentative” and “fragile” appear with mentions of the trade war truce agreed between presidents Trump and Xi barely a week after their meeting in Osaka, oil bulls know better than to try and take centre-stage again. 

Yes, some puzzle over why crude remains on a slippery slope despite supply restraints (OPEC cuts), constraints (Iran, Venezuela) and risks (Middle East tensions). We explore why some of these are being discounted, and for good reason.

The extension of output cuts wasn’t really the main news out of the OPEC/non-OPEC meetings in Vienna last week. We give you our take on what was more important.

4. India Equity Derivatives – The Tail Wags the Dog

On April 22, the National Stock Exchange of India (NSE) published a list of 34 stocks that would be excluded from the Futures and Options segment for not meeting the enhanced eligibility criteria to remain in the derivatives segment with effect from June 28. What followed was a complete and utter meltdown across the stocks involved. While the Nifty was up 2.13% during the period, the average return across the 34 stocks was -14% with the median return at -13%.

This has a profound impact for investors in Indian equities, especially those focused on small and midcap names. With 161 names still included in the derivatives market, investors need to be aware of the impact of changes in the derivatives market on their stock portfolio.

5. All-Time Closing Highs Fails To Impress

The S&P 500 made a new all-time closing high following the largely as-expected U.S.-China trade cease-fire agreement, but it did so unconvincingly. We would not call it a breakout as the market closed well off of the opening highs and not one cyclical Sector is decisively in new high territory. Overall, the market is sending mixed signals. Barring additional positive developments we believe upside is likely to be muted from here. In today’s report we highlight attractive Groups and stocks within Health Care, Services, and Technology: Diagnostic Imaging, Construction & Engineering, Large-Cap, and Solar Energy.

Get Straight to the Source on Smartkarma

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Brief Energy: US LNG Price Economic Drivers in the Context of Low LNG and Tariffs and more

By | Daily Briefs, Energy Sector

In this briefing:

  1. US LNG Price Economic Drivers in the Context of Low LNG and Tariffs
  2. MODEC: On Track to Win Roughly Half of Its Bids

1. US LNG Price Economic Drivers in the Context of Low LNG and Tariffs

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In the current environment of very low Asian LNG and European gas prices it is worth looking at whether US LNG economics still justify production or if there is the chance of shut-ins. We have analysed the various factors that influence the US LNG delivered price both on a full cycle cost basis and a variable cost basis.  

2. MODEC: On Track to Win Roughly Half of Its Bids

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We visited Modec Inc (6269 JP) today and conditions remain strong and stable in spite of the somewhat disappointing news yesterday that it had lost out on its bid for Petrobras’ Mero 2 FPSO to archrival SBM Offshore NV (SBMO NA). We believe Modec is on track to win three FPSO orders this year which will take the company’s shipbuilding busines to almost full capacity and its steady and growing O&M business which generates 55% of profit is in our opinion worth more than Modec’s market cap on its own. We believe the company is capable of generating about ¥400 in EPS which would put it on 7.2x PE. That is excessively cheap.

Get Straight to the Source on Smartkarma

Smartkarma supports the world’s leading investors with high-quality, timely, and actionable Insights. Subscribe now for unlimited access, or request a demo below.



Brief Energy: U.S. Equities: Mixed Signals Punctuate Muted Outlook and more

By | Daily Briefs, Energy Sector

In this briefing:

  1. U.S. Equities: Mixed Signals Punctuate Muted Outlook
  2. Weekly Oil Views: Sentiment Defaults to Demand Growth Fears
  3. India Equity Derivatives – The Tail Wags the Dog
  4. All-Time Closing Highs Fails To Impress
  5. HK Connect Ideas: Seven Weeks of Inflows, Shenhua Energy, CIMC, Bosideng (2019-06-28)

1. U.S. Equities: Mixed Signals Punctuate Muted Outlook

Untitled

While the S&P 500 has hit marginal new highs, price action of the S&P 500 and the price and RS of several Sectors/subsectors is similar to the periods leading up to the October 2018 and May 2019 breakdowns. We draw several similarities in today’s report, and we continue to believe upside is likely to be muted from here barring additional positive developments.

2. Weekly Oil Views: Sentiment Defaults to Demand Growth Fears

The oil market is keeping global economic headwinds firmly in sight, with weakening manufacturing activity across several parts of the world in June serving a fresh reminder. 

Crude prices tend to jump if there is a big weekly drawdown in crude stocks, or a fresh incident triggers a spike in tensions in the oil-rich Middle East. But the rallies don’t seem to have staying power. Market sentiment defaults to bearishness from demand growth fears. 

When the words “tentative” and “fragile” appear with mentions of the trade war truce agreed between presidents Trump and Xi barely a week after their meeting in Osaka, oil bulls know better than to try and take centre-stage again. 

Yes, some puzzle over why crude remains on a slippery slope despite supply restraints (OPEC cuts), constraints (Iran, Venezuela) and risks (Middle East tensions). We explore why some of these are being discounted, and for good reason.

The extension of output cuts wasn’t really the main news out of the OPEC/non-OPEC meetings in Vienna last week. We give you our take on what was more important.

3. India Equity Derivatives – The Tail Wags the Dog

On April 22, the National Stock Exchange of India (NSE) published a list of 34 stocks that would be excluded from the Futures and Options segment for not meeting the enhanced eligibility criteria to remain in the derivatives segment with effect from June 28. What followed was a complete and utter meltdown across the stocks involved. While the Nifty was up 2.13% during the period, the average return across the 34 stocks was -14% with the median return at -13%.

This has a profound impact for investors in Indian equities, especially those focused on small and midcap names. With 161 names still included in the derivatives market, investors need to be aware of the impact of changes in the derivatives market on their stock portfolio.

4. All-Time Closing Highs Fails To Impress

The S&P 500 made a new all-time closing high following the largely as-expected U.S.-China trade cease-fire agreement, but it did so unconvincingly. We would not call it a breakout as the market closed well off of the opening highs and not one cyclical Sector is decisively in new high territory. Overall, the market is sending mixed signals. Barring additional positive developments we believe upside is likely to be muted from here. In today’s report we highlight attractive Groups and stocks within Health Care, Services, and Technology: Diagnostic Imaging, Construction & Engineering, Large-Cap, and Solar Energy.

5. HK Connect Ideas: Seven Weeks of Inflows, Shenhua Energy, CIMC, Bosideng (2019-06-28)

Hscei%20inflow%2006 28

In our weekly HK Connect Snippet series, we aim to help our investors understand the flow of southbound trades via the Hong Kong Connect, as analyzed by our proprietary data engine, and highlight interesting observations. 

We split the stocks eligible for the Hong Kong Connect trade into three groups: HSCEI component stocks, stocks with a market capitalization between USD 1 billion and USD 5 billion, and stocks with a market capitalization between USD 500 million and USD 1 billion.

In this insight, we will highlight inflows into China Shenhua Energy Co H (1088 HK), the largest coal mining company in the world when the company announced the newly elected chairman, and outflows from Tencent Holdings (700 HK), and WH Group (288 HK). In the mid-cap space, we will highlight strong inflows into China International Marine Cntnrs Gp (2039 HK) and Bosideng Intl Hldgs (3998 HK). We would also mention that Meituan Dianping (3690 HK) and Xiaomi Corp (1810 HK) could become eligible for the Hong Kong connect trading in July. 

Get Straight to the Source on Smartkarma

Smartkarma supports the world’s leading investors with high-quality, timely, and actionable Insights. Subscribe now for unlimited access, or request a demo below.



Brief Energy: Weekly Oil Views: Sentiment Defaults to Demand Growth Fears and more

By | Daily Briefs, Energy Sector

In this briefing:

  1. Weekly Oil Views: Sentiment Defaults to Demand Growth Fears
  2. India Equity Derivatives – The Tail Wags the Dog
  3. All-Time Closing Highs Fails To Impress
  4. HK Connect Ideas: Seven Weeks of Inflows, Shenhua Energy, CIMC, Bosideng (2019-06-28)
  5. Weekly Oil Views: Osaka Unlikely to Spur a Bull Run, OPEC+ Decision Already Baked In

1. Weekly Oil Views: Sentiment Defaults to Demand Growth Fears

The oil market is keeping global economic headwinds firmly in sight, with weakening manufacturing activity across several parts of the world in June serving a fresh reminder. 

Crude prices tend to jump if there is a big weekly drawdown in crude stocks, or a fresh incident triggers a spike in tensions in the oil-rich Middle East. But the rallies don’t seem to have staying power. Market sentiment defaults to bearishness from demand growth fears. 

When the words “tentative” and “fragile” appear with mentions of the trade war truce agreed between presidents Trump and Xi barely a week after their meeting in Osaka, oil bulls know better than to try and take centre-stage again. 

Yes, some puzzle over why crude remains on a slippery slope despite supply restraints (OPEC cuts), constraints (Iran, Venezuela) and risks (Middle East tensions). We explore why some of these are being discounted, and for good reason.

The extension of output cuts wasn’t really the main news out of the OPEC/non-OPEC meetings in Vienna last week. We give you our take on what was more important.

2. India Equity Derivatives – The Tail Wags the Dog

On April 22, the National Stock Exchange of India (NSE) published a list of 34 stocks that would be excluded from the Futures and Options segment for not meeting the enhanced eligibility criteria to remain in the derivatives segment with effect from June 28. What followed was a complete and utter meltdown across the stocks involved. While the Nifty was up 2.13% during the period, the average return across the 34 stocks was -14% with the median return at -13%.

This has a profound impact for investors in Indian equities, especially those focused on small and midcap names. With 161 names still included in the derivatives market, investors need to be aware of the impact of changes in the derivatives market on their stock portfolio.

3. All-Time Closing Highs Fails To Impress

The S&P 500 made a new all-time closing high following the largely as-expected U.S.-China trade cease-fire agreement, but it did so unconvincingly. We would not call it a breakout as the market closed well off of the opening highs and not one cyclical Sector is decisively in new high territory. Overall, the market is sending mixed signals. Barring additional positive developments we believe upside is likely to be muted from here. In today’s report we highlight attractive Groups and stocks within Health Care, Services, and Technology: Diagnostic Imaging, Construction & Engineering, Large-Cap, and Solar Energy.

4. HK Connect Ideas: Seven Weeks of Inflows, Shenhua Energy, CIMC, Bosideng (2019-06-28)

Hscei%20inflow%2006 28

In our weekly HK Connect Snippet series, we aim to help our investors understand the flow of southbound trades via the Hong Kong Connect, as analyzed by our proprietary data engine, and highlight interesting observations. 

We split the stocks eligible for the Hong Kong Connect trade into three groups: HSCEI component stocks, stocks with a market capitalization between USD 1 billion and USD 5 billion, and stocks with a market capitalization between USD 500 million and USD 1 billion.

In this insight, we will highlight inflows into China Shenhua Energy Co H (1088 HK), the largest coal mining company in the world when the company announced the newly elected chairman, and outflows from Tencent Holdings (700 HK), and WH Group (288 HK). In the mid-cap space, we will highlight strong inflows into China International Marine Cntnrs Gp (2039 HK) and Bosideng Intl Hldgs (3998 HK). We would also mention that Meituan Dianping (3690 HK) and Xiaomi Corp (1810 HK) could become eligible for the Hong Kong connect trading in July. 

5. Weekly Oil Views: Osaka Unlikely to Spur a Bull Run, OPEC+ Decision Already Baked In

  • The Trump-Xi ceasefire and resumption of trade talks agreed in Osaka on Saturday has a long road ahead to reach a trade agreement. The US and China will not escalate their trade war, but are not withdrawing existing import tariffs against each other.
  • The two sides have not set a timeframe to forge a deal. The difficult issues that derailed the talks at the start of May, when the world believed that Washington and Beijing were close to the finish line, could take several months to work through. 
  • As a result, the oil market will keep the economic headwinds firmly in sight. Expectations of lacklustre global oil demand growth, at least for 2019, are unlikely to change any time soon, encouraging oil bulls to continue laying low.
  • OPEC/non-OPEC ministers meeting on Monday and Tuesday are expected to extend their combined 1.2 million b/d of output cuts through the second half of the year. No surprises there, it has already been baked in.

Get Straight to the Source on Smartkarma

Smartkarma supports the world’s leading investors with high-quality, timely, and actionable Insights. Subscribe now for unlimited access, or request a demo below.



Brief Energy: MODEC: On Track to Win Roughly Half of Its Bids and more

By | Daily Briefs, Energy Sector

In this briefing:

  1. MODEC: On Track to Win Roughly Half of Its Bids
  2. Weekly Oil Views: Late-Week Price Rebound from 5-Month Lows Feels Tentative

1. MODEC: On Track to Win Roughly Half of Its Bids

Modec%20non%20operating%20income

We visited Modec Inc (6269 JP) today and conditions remain strong and stable in spite of the somewhat disappointing news yesterday that it had lost out on its bid for Petrobras’ Mero 2 FPSO to archrival SBM Offshore NV (SBMO NA). We believe Modec is on track to win three FPSO orders this year which will take the company’s shipbuilding busines to almost full capacity and its steady and growing O&M business which generates 55% of profit is in our opinion worth more than Modec’s market cap on its own. We believe the company is capable of generating about ¥400 in EPS which would put it on 7.2x PE. That is excessively cheap.

2. Weekly Oil Views: Late-Week Price Rebound from 5-Month Lows Feels Tentative

Decoupling from the stock markets’ euphoria over a dovish Fed and under pressure from swelling US crude inventories, crude sank to five-month lows last Wednesday.

Brent and WTI finally rebounded over Thursday and Friday but still closed the week 15% and 19% lower respectively from their year-to-date highs, touched towards the end of April amid peak optimism that a US-China trade deal was imminent.

Equities may continue to cheer expectations of an interest rate cut by the US Federal Reserve. But oil cannot ignore the clear signs of economic deceleration in slowing industrial activity, waning consumer sentiment, and signs of stress in the job market — not just in the US and China, but also other major economies around the world. 

The oil bears may keep an upper hand until and unless the OPEC/non-OPEC combine of producers are able to effectively counter the slowdown in global demand growth with their production cuts. It may be a while before we know whether they are succeeding.

Get Straight to the Source on Smartkarma

Smartkarma supports the world’s leading investors with high-quality, timely, and actionable Insights. Subscribe now for unlimited access, or request a demo below.



Brief Energy: Weekly Oil Views: Late-Week Price Rebound from 5-Month Lows Feels Tentative and more

By | Daily Briefs, Energy Sector

In this briefing:

  1. Weekly Oil Views: Late-Week Price Rebound from 5-Month Lows Feels Tentative

1. Weekly Oil Views: Late-Week Price Rebound from 5-Month Lows Feels Tentative

Decoupling from the stock markets’ euphoria over a dovish Fed and under pressure from swelling US crude inventories, crude sank to five-month lows last Wednesday.

Brent and WTI finally rebounded over Thursday and Friday but still closed the week 15% and 19% lower respectively from their year-to-date highs, touched towards the end of April amid peak optimism that a US-China trade deal was imminent.

Equities may continue to cheer expectations of an interest rate cut by the US Federal Reserve. But oil cannot ignore the clear signs of economic deceleration in slowing industrial activity, waning consumer sentiment, and signs of stress in the job market — not just in the US and China, but also other major economies around the world. 

The oil bears may keep an upper hand until and unless the OPEC/non-OPEC combine of producers are able to effectively counter the slowdown in global demand growth with their production cuts. It may be a while before we know whether they are succeeding.

Get Straight to the Source on Smartkarma

Smartkarma supports the world’s leading investors with high-quality, timely, and actionable Insights. Subscribe now for unlimited access, or request a demo below.



Brief Energy: Weekly Oil Views: Late-Week Price Rebound from 5-Month Lows Feels Tentative and more

By | Daily Briefs, Energy Sector

In this briefing:

  1. Weekly Oil Views: Late-Week Price Rebound from 5-Month Lows Feels Tentative
  2. Chiyoda: Mozambique Order Win Follows First LNG Shipment at Cameron

1. Weekly Oil Views: Late-Week Price Rebound from 5-Month Lows Feels Tentative

Decoupling from the stock markets’ euphoria over a dovish Fed and under pressure from swelling US crude inventories, crude sank to five-month lows last Wednesday.

Brent and WTI finally rebounded over Thursday and Friday but still closed the week 15% and 19% lower respectively from their year-to-date highs, touched towards the end of April amid peak optimism that a US-China trade deal was imminent.

Equities may continue to cheer expectations of an interest rate cut by the US Federal Reserve. But oil cannot ignore the clear signs of economic deceleration in slowing industrial activity, waning consumer sentiment, and signs of stress in the job market — not just in the US and China, but also other major economies around the world. 

The oil bears may keep an upper hand until and unless the OPEC/non-OPEC combine of producers are able to effectively counter the slowdown in global demand growth with their production cuts. It may be a while before we know whether they are succeeding.

2. Chiyoda: Mozambique Order Win Follows First LNG Shipment at Cameron

On 3 Jun Chiyoda Corp (6366 JP)announced that Cameron LNG had completed its first LNG shipment from train 1 (on 31 May). That news and a strong market have helped boost the stock 11% in the last two days and this is now followed by news out from JV partners Saipem SpA (SPM IM) and Mcdermott Intl (MDR US) that their JV involving Chiyoda, CCS JV had been awarded the contract for the Mozambique Area 1 LNG facility for two liquefaction trains of 6.44m tons capacity each. This order win is another check mark in the LNG capex recovery story and should support the stock.

Get Straight to the Source on Smartkarma

Smartkarma supports the world’s leading investors with high-quality, timely, and actionable Insights. Subscribe now for unlimited access, or request a demo below.



Brief Energy: India Equity Derivatives – The Tail Wags the Dog and more

By | Daily Briefs, Energy Sector

In this briefing:

  1. India Equity Derivatives – The Tail Wags the Dog
  2. All-Time Closing Highs Fails To Impress
  3. HK Connect Ideas: Seven Weeks of Inflows, Shenhua Energy, CIMC, Bosideng (2019-06-28)
  4. Weekly Oil Views: Osaka Unlikely to Spur a Bull Run, OPEC+ Decision Already Baked In
  5. HK Connect Ideas: Six Weeks of Inflows, BEW, Solars (2019-06-21)

1. India Equity Derivatives – The Tail Wags the Dog

On April 22, the National Stock Exchange of India (NSE) published a list of 34 stocks that would be excluded from the Futures and Options segment for not meeting the enhanced eligibility criteria to remain in the derivatives segment with effect from June 28. What followed was a complete and utter meltdown across the stocks involved. While the Nifty was up 2.13% during the period, the average return across the 34 stocks was -14% with the median return at -13%.

This has a profound impact for investors in Indian equities, especially those focused on small and midcap names. With 161 names still included in the derivatives market, investors need to be aware of the impact of changes in the derivatives market on their stock portfolio.

2. All-Time Closing Highs Fails To Impress

The S&P 500 made a new all-time closing high following the largely as-expected U.S.-China trade cease-fire agreement, but it did so unconvincingly. We would not call it a breakout as the market closed well off of the opening highs and not one cyclical Sector is decisively in new high territory. Overall, the market is sending mixed signals. Barring additional positive developments we believe upside is likely to be muted from here. In today’s report we highlight attractive Groups and stocks within Health Care, Services, and Technology: Diagnostic Imaging, Construction & Engineering, Large-Cap, and Solar Energy.

3. HK Connect Ideas: Seven Weeks of Inflows, Shenhua Energy, CIMC, Bosideng (2019-06-28)

Hscei%20inflow%2006 28

In our weekly HK Connect Snippet series, we aim to help our investors understand the flow of southbound trades via the Hong Kong Connect, as analyzed by our proprietary data engine, and highlight interesting observations. 

We split the stocks eligible for the Hong Kong Connect trade into three groups: HSCEI component stocks, stocks with a market capitalization between USD 1 billion and USD 5 billion, and stocks with a market capitalization between USD 500 million and USD 1 billion.

In this insight, we will highlight inflows into China Shenhua Energy Co H (1088 HK), the largest coal mining company in the world when the company announced the newly elected chairman, and outflows from Tencent Holdings (700 HK), and WH Group (288 HK). In the mid-cap space, we will highlight strong inflows into China International Marine Cntnrs Gp (2039 HK) and Bosideng Intl Hldgs (3998 HK). We would also mention that Meituan Dianping (3690 HK) and Xiaomi Corp (1810 HK) could become eligible for the Hong Kong connect trading in July. 

4. Weekly Oil Views: Osaka Unlikely to Spur a Bull Run, OPEC+ Decision Already Baked In

  • The Trump-Xi ceasefire and resumption of trade talks agreed in Osaka on Saturday has a long road ahead to reach a trade agreement. The US and China will not escalate their trade war, but are not withdrawing existing import tariffs against each other.
  • The two sides have not set a timeframe to forge a deal. The difficult issues that derailed the talks at the start of May, when the world believed that Washington and Beijing were close to the finish line, could take several months to work through. 
  • As a result, the oil market will keep the economic headwinds firmly in sight. Expectations of lacklustre global oil demand growth, at least for 2019, are unlikely to change any time soon, encouraging oil bulls to continue laying low.
  • OPEC/non-OPEC ministers meeting on Monday and Tuesday are expected to extend their combined 1.2 million b/d of output cuts through the second half of the year. No surprises there, it has already been baked in.

5. HK Connect Ideas: Six Weeks of Inflows, BEW, Solars (2019-06-21)

Smid%20cap%20inflow%2006 21

In our weekly HK Connect Snippet series, we aim to help our investors understand the flow of southbound trades via the Hong Kong Connect, as analyzed by our proprietary data engine, and highlight interesting observations. 

We split the stocks eligible for the Hong Kong Connect trade into three groups: component stocks in the HSCEI index, stocks with a market capitalization between USD 1 billion and USD 5 billion, and stocks with a market capitalization between USD 500 million and USD 1 billion.

In this insight, we will highlight recent issue with Beijing Enterprises Water Group (371 HK) ​and catalyst for solar companies, including Xinyi Solar Holdings (968 HK) ​and Flat Glass (6865 HK)​. Meanwhile, we will also review the flows of Tencent Holdings (700 HK)​, WH Group (288 HK) ​and Geely Auto (175 HK)​. 

Get Straight to the Source on Smartkarma

Smartkarma supports the world’s leading investors with high-quality, timely, and actionable Insights. Subscribe now for unlimited access, or request a demo below.



Brief Energy: Chiyoda: Mozambique Order Win Follows First LNG Shipment at Cameron and more

By | Daily Briefs, Energy Sector

In this briefing:

  1. Chiyoda: Mozambique Order Win Follows First LNG Shipment at Cameron

1. Chiyoda: Mozambique Order Win Follows First LNG Shipment at Cameron

On 3 Jun Chiyoda Corp (6366 JP)announced that Cameron LNG had completed its first LNG shipment from train 1 (on 31 May). That news and a strong market have helped boost the stock 11% in the last two days and this is now followed by news out from JV partners Saipem SpA (SPM IM) and Mcdermott Intl (MDR US) that their JV involving Chiyoda, CCS JV had been awarded the contract for the Mozambique Area 1 LNG facility for two liquefaction trains of 6.44m tons capacity each. This order win is another check mark in the LNG capex recovery story and should support the stock.

Get Straight to the Source on Smartkarma

Smartkarma supports the world’s leading investors with high-quality, timely, and actionable Insights. Subscribe now for unlimited access, or request a demo below.