In-depth: Global market wrap-up


time now for an in-depth look at the
market news today and for that I’m joined on the line by mr. Daniel you
global strategist at you want to securities mister you thanks for making
time today thank you very much for having me today now we’ve got all these
issues in trade and a slowdown in the global economy but the three main
indexes on Wall Street are at all-time highs where are we now and what’s your
outlook in the near term sure as you said Dow s and pin a stocks are
all breaking the record highs if you look at the dial it was up 0.42%
yesterday SNP was up 0.37% Nasdaq is up 0.56% a small cap indices Russell 2000
is also up 0.67% not just the US market various emerging markets are also rally
breaking the record highs Vietnam and other various countries are breaking its
highs in terms of these why this kind of rally is happening clearly this is
because of higher liquidity that is bidding into the equity market
performance interest rate environments are very low as you know that all the
countries including Europe us and various other countries are lowering
interest rate and pumping the liquidity into the system so clearly this is
making the OBO equity market to rally continuously but in terms of the
valuation wise people might be worried because a lot of these indices are
record high level key multiples but I’m saying that that’s not really a problem
yet because of the historical highs versus current level is still
unreasonably ok if you look at the peer and greed index for us it is hitting
highs around 86 territories once that hits above 80 we need to be
cautious so we are saying that in a short-term basis market might make a
some breeder and take some time for to rest a bit but in terms of medium-term
we think that the relative should continue because the global economy is
in situation where we are not going to see any
recession while the interest rates remaining low and the incomes are rising
in a steady speed all that means is that the current stage is where we are at
Goldilocks phase so therefore equity market should do
well in terms of the evaluation and rather than looking at P multiple we
need to look at PBR and it looks interestingly attractive if we able to
keep the current return on equity level right well it’s been a good week so far
for Korean stocks to The Cosby and the KOSDAQ both higher today what’s the
story there yes as you said cusp is up another 0.5 8% today kostik is up
another 0.56% the key factor that we are looking at is what’s happening to the
manufacturing industry particularly the DRAM semiconductor industries most
people are saying that the turnaround is coming
most likely in the fourth quarter and going into next year 5g demand and pick
up on the overall fourth Industrial Revolution related demand relates to the
IT sector should be quite strong if that’s the case then the earnings turn
on is likely if you look at the overall earnings growth rate we have seen a
quite significant drop of earnings in 2019 by about 30 percent plus year on
year but looking into third quarter results and going into the fourth
quarter Q&Q numbers are bottoming out so estimation is that Cosby will show
earnings growth rate of close to 20 percent next year if that is correct
then yes the market can do or this will run in the future but we’re not sure
whether that kind of strong growth in earnings will happen immediately and
also the overall the dividend yield territory is not that high so therefore
we think that Korean equity market can do additional run but in terms of the
performance wise for the next six months at 12 months it might not be as strong
as some other market that we like got it well of course a big story today
15 countries including Korea concluding negotiations on our SEP what could which
could be the world’s biggest trade deal what might this do for the Korean
economy well in terms of the impact on Korean economy everybody sang is
positive news I look at it as whether or not this is something that the Asian
country can do despite all the concern that’s happening amongst the global
economies because of the protectionism that’s been introduced by various
countries as you said the 15 countries joined on Monday in agreeing in terms of
the free trade as you know the sino US trade war and the rising protectionism
is giving a huge burden for the economy go straight
if the Asian countries are coming together which is one third of the
global economy then that means that is that fairly positive news despite all
the negative news that flows that came through however unfortunately the India
did not join this accept because they’re saying that it is not necessarily good
for its farmers businesses and workers and consumers of course they left the
door open for India to potentially join them later but at the current stage it’s
a little bit disappointing that India did not join but nevertheless we are
seeing some negotiation will be happening in the positive direction
particularly as US China Korea are all in it and that should including Japan as
well so that the dispute in Korea and Japan has been quite negative in the
past but overall because of this our cept we think that the trend itself
should be turning into the positive directions all right mr. Yeo as we will
have to leave it today again we appreciate your insights thank you very
much

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