ACN Business

"Winter" is Coming After Peak in 3Q 2018

  • Written by ACN Newswire
HONG KONG, July 10, 2018 - (ACN Newswire) - CCB International Securities Limited (CCBIS) released Asset Allocation Strategy for the second half of 2018 in late June.

The central feature of the Strategy is that trends that caused equity markets to stall in the first half of 2018 - weakening corporate earnings growth, gradually rising inflation and tightening global financial conditions - are set to intensify in the second half, creating an increasingly uncertain and volatile investment environment. Nevertheless, equity markets are likely to experience a relief rally in the third quarter amid rising interest rates. CCBIS advises investors to take advantage of this rally to reduce equity risk during the quarter and beyond.

As forecasted by CCBIS, by the end of this year, the HSI and HSCEI in Hong Kong will drop to 28,000 and 11,900 after peaking in the third quarter, representing a year-end price/earnings ratio of 10.5 and 7.9, respectively. At some stage, investors will begin to expect that the odds of below-trend growth in 2019 outweigh that of above-trend growth. When this shift occurs, equity markets will start to de-rate.

Taking all of the above into consideration, CCBIS "Overweight" the consumer discretionary, energy and information technology sectors, while consumer staples, financials, healthcare, materials and real estate sectors are rated "Neutral". The Telecom, utilities and industrials sectors are "Underweight". To lower risk, CCBIS prefers gold investment and takes construction and gas utilities as a defensive choice.

Taking into account market trends, CCBIS sector ratings are as follows:CCBIS rating / SectorOverweight / Consumer discretionary, energy, information technologyNeutral / Consumer staples, financials, healthcare, materials real estateUnderweight / Telecom, utilities, industrials

CCBI was nominated in the 2018 Asiamoney Brokers Poll, and we cordially invite you to cast your valuable vote for CCBI!

Please click the link below to vote for CCBI.https://surveys.euromoney.com/s3/Asiamoney-Brokers-Poll-2018Please refer to Voting Instruction (http://ccbintl.com.hk/photo/bpdf/voteEN2018.pdf) / and Research Team Introduction (http://ccbintl.com.hk/photo/bpdf/CCBISEN2018.pdf) for more information.[1][2][3]

Topic: Press release summarySectors: Daily Finance, Daily News[4][5] http://www.acnnewswire.com From the Asia Corporate News Network

Copyright © 2018 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.

Read more http://www.acnnewswire.com/press-release/english/44678/

Business Daily Media Business Reports

Di Jones real estate recognises high achievers

Di Jones celebrated its outstanding performers on Saturday (24 February 2018) evening at the Di Jones Real Estate Annual Awards.                               The bla...

Helen Hull - avatar Helen Hull

Eclipse Travel Expands Operations to New Zealand

Eclipse Travel, specialists in key adventure destinations such as Antarctica, the Arctic, Africa and Latin America, have announced today their expansion of operations to ...

Yvonne Kong - avatar Yvonne Kong

How medical professionals can benefit from an overall wealth management solution

As a health care professional, you have made it your life's work to focus on the care and health of the general public. While this kind of work can be extremely rewarding...

News Feature Team - avatar News Feature Team

Why Pinterest Should Be Part of Your Marketing Strategy

Pinterest is a growing social media platform that can deliver significant traffic to your website and new followers to your brand. With it’s steady growth and outrageous ...

Greg Nunan - avatar Greg Nunan

The top reasons why gyms fail

Steve Grant is a Business Coach and Founder of GymHub.com.au   Every month thousands of new trainers walk out of their 6-month course with the qualifications needed ...

Steve Grant - avatar Steve Grant

WHITE LABEL NOBA’s Winter 2016 season: Earth + Country

Taking cues from the warm winter colours of tobacco and caramel, and combining them with the strength of navy and the embracing lightness of whites and creams; and then...

Kath Rose - avatar Kath Rose

Former Etihad boss brings substantial event insight to PMY Group Board

Paul Sergeant PMY Group, the architects of the digital insurgency occurring at major venues across Australia and New Zealand, are delighted to welcome 35 year even...

Annie Konieczny - avatar Annie Konieczny

More training for coffee making than property sales: REINSW

Sydney 9 May 2016. An overhaul of education and training standards for the real estate profession must take place to help prevent illegal activities, according to the Rea...

Helen Hull - avatar Helen Hull