Today's edition of the Saxo Morning Call features the SaxoStrats team discussing the continuing weakness of the US dollar as commodity prices recover ground and in the wake of key US equity indices hitting all-time highs Thursday.
Article / 16 July 2014 at 14:53 GMT

Top Asia Pacific equity picks take a tumble

Head of Equity Strategy / Saxo Bank
By Peter Garnry

Our top equity picks in Asia Pacific fell 1.1 percent over the past week, in line with the MSCI Asia Pacific index. These were driven by declines in Nomura Holdings, Sumitomo Mitsui Financial and Mitsubishi UFJ (see chart below). The drop in the portfolio's bank stocks was primarily driven by the general sell-off in financials and, specifically, Nomura, which saw a more sizeable downturn due to its exposure to the Espirito Santo Financial Group (shares are still halted for trading). 

Asia Pacific equities top picks performance

Conviction buy list expanded to 20 names
To broaden our quant model's approach to selecting the winners, we have chosen to expand our conviction buy-list from 10 to 20 stocks (see the table below). The portfolio has an equal-weighted 12-month return forecast of 18 percent. The price-to-book ratio is 1.6x and ROE is 11.4 percent.

Asia Pacific equities top picks

Read the full publication on Asia Pacific equities in the attached PDF.

-- Edited by Kevin McIndoe

Peter Garnry is the Head of Equity Strategy at Saxo Bank. Please check out his articles and trades here.

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Quant Corner - Asia Pacific


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