In today’s briefing:
- The Great Gold Rush of 2025: Why Physical Demand Is Rising?
- Japan Strategy Weekly | Carlyle’s Kaonavi Deal Signals a Shift in Japanese Valuations
- Singapore Market Roundup (14-Feb-2025): Brokers’ top picks: CLAR, CICT, CNMC, KORE, Wilmar, Parkway Life, FLCT, ST Engineering.
- #103 India Insight: India Adapts to US Sanctions, Unilever Invests in Beauty, BAT to Divest
- Despite DeepSeek’s Innovation, Hyperscalers Doubling Down on Capex
- AUCTUS ON FRIDAY – 14/07/2025
The Great Gold Rush of 2025: Why Physical Demand Is Rising?
- Physical gold buying has surged, with COMEX vaults seeing a 115% increase in two months, pushing holdings above 2020 pandemic levels, highlighting an unprecedented demand for physical gold.
- This surge matters because it indicates major shift in global gold market, with London vault inventories decreasing and US becoming net gold importer, signaling a significant change in gold’s distribution.
- The impact is seen in rising gold prices, up 40% in 12 months, outperforming the S&P 500, as gold solidifies its position as global hedge against economic and geopolitical uncertainties.
Japan Strategy Weekly | Carlyle’s Kaonavi Deal Signals a Shift in Japanese Valuations
- Japan’s tech market sees major movement with Carlyle’s 120% premium bid for Kaonavi, highlighting the stark valuation gap between Japanese and US SaaS companies.
- Many Japanese software firms trade at significantly lower multiples (4x) versus US peers (8x), attracting private equity attention.
- Japanese stocks ended the week up around 1%. Global macro concerns and inflation lifting bond yields and raising concern over a stronger yen.
Singapore Market Roundup (14-Feb-2025): Brokers’ top picks: CLAR, CICT, CNMC, KORE, Wilmar, Parkway Life, FLCT, ST Engineering.
- Brokers’ top stock picks include CLAR, CICT, CNMC Goldmine, KORE, Wilmar, Parkway Life REIT, FLCT, and ST Engineering.
- Analysts recommend buying Digital Core REIT due to increased rents and leasing strength, while optimistic about Oiltek’s new orders for FY2025.
- CGSI optimistic about Seatrium with new MOU for second bp FPU; OCBC boosts fair value. Citi downgrades SGX to ‘sell’. PhillipCapital maintains ‘accumulate’ rating on BRC Asia, raises TP to $3.15. Maybank Securities maintains ‘buy’ rating on SingPost. DBS upgrades Elite UK REIT to ‘buy’.
#103 India Insight: India Adapts to US Sanctions, Unilever Invests in Beauty, BAT to Divest
- India is adapting to tougher US sanctions on Russian oil by rebuilding supply chains with non-sanctioned merchants, tankers, and insurance providers.
- Unilever (UL US) plans to invest in India’s beauty and wellness sector, expecting improved demand conditions mid-term after fiscal stimulus.
- British American Tobacco (BATS LN) will divest its 15% stake in ITC Hotels at the “best moment,” aiming to maximize shareholder value, following ITC Hotels demerger from ITC Ltd (ITC IN) earlier.
Despite DeepSeek’s Innovation, Hyperscalers Doubling Down on Capex
- Despite DeepSeek (DPSK12 CH)’s breakthrough with minimal chips, hyperscalers remain undeterred, planning $315 billion in FY25 capex to expand AI and cloud infrastructure.
- This sustained high capex underlines tech giants’ confidence in long-term AI growth, ensuring a competitive edge and reinforcing their market leadership.
- Investors should see this aggressive capex commitment as a signal of robust future revenue potential, even amid disruptive cost-saving innovations.
AUCTUS ON FRIDAY – 14/07/2025
- ADX Energy (ADX AU)C; Target price of A$0.30 per share: New acreage in Austria increases prospect inventory with a focus on low risk, shallow gas – ADX’s acreage in Austria has been modified to include additional near-term, low-risk gas prospects, as well as high-impact, higher-risk opportunities.
- One focus of the 2025 program is to drill shallow, low-risk, high initial production gas prospects that can be rapidly put into production.
- ADX has more than tripled the number of these prospects within its revised acreage positions at ADX-AT-I and ADX-AT-II, holding 100% WI in the new prospects.
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