Weekly | Why DELTA Lead the Market this Week?
As of the close on Friday, $Straits Times Index(STI.SI)$ closed at 3,801.56 points, down 0.01% points last week.
During the last 5 trading days, $Delta TH SDR 1to1(TDED.SI)$, $Frasers HTrust(ACV.SI)$, $Thomson Medical(A50.SI)$, $ocbc bank(O39.SI)$ and $Kasikorn BK TH SDR1to1(TKKD.SI)$ are the top 5 weekly gainers, up 9.43%, 6.36%, 4.26%, 3.20% and 2.28% respectively.
$Yanlord Land(Z25.SI)$, $Tencent HK SDR 10to1(HTCD.SI)$, $Olam Group(VC2.SI)$, $CapitaLandInvest(9CI.SI)$ and $Top Glove(BVA.SI)$ are top 5 decliners of SGX stocks which market capital above S$1 Bln.
Below are key analyses of the TOP 5 gainers:
1. $Delta TH SDR 1to1(TDED.SI)$
Market Momentum: DELTA's stock has been on an upward trajectory, with a 52-week range between 63.25 THB and 173.50 THB, indicating strong investor interest.
Sector Performance: As a leading player in the electronics and technology sector, DELTA may be benefiting from positive industry trends and increased demand for electronic components.
Company Fundamentals: Investors might be responding to DELTA's financial health and growth prospects, as reflected in its market capitalization of approximately 1.94 trillion THB and a P/E ratio of 90.24.
2. $Frasers HTrust(ACV.SI)$
Increased Trading Volumes: There has been a sharp increase in trading activity for FHT, with trading volumes peaking recently, signaling heightened investor interest.
Sectoral Recovery: FHT is part of the hospitality and REIT sectors, both of which are experiencing a recovery as tourism and business travel pick up. This trend could be contributing to positive market sentiment.
Financial Performance: Recent financial reports show growth in gross revenue and net property income, likely reflecting the broader recovery in the global hospitality industry.
3. $Thomson Medical(A50.SI)$
Analyst Coverage: Maybank Securities' analyst Eric Ong recently adjusted his target price for Thomson Medical Group from 8 cents to 6 cents, following the group's FY2024 results.
Market Speculation: The healthcare sector often attracts investor interest due to its resilience and growth potential, especially in times of increased focus on health services.
Technical Indicators: The stock's recent performance may have triggered technical buy signals, attracting short-term traders looking to capitalize on momentum.
4. $ocbc bank(O39.SI)$
Strong Financial Performance: OCBC reported a 9% increase in third-quarter net profit, reaching S$1.97 billion, surpassing market expectations. The bank is on track to achieve its 2024 targets, including a net interest margin around 2.20% and return on equity above 14%.
Positive Market Sentiment Towards Singapore Banks: The broader Singapore banking sector has been performing well, with major banks like DBS, OCBC, and UOB hitting all-time highs. This trend reflects investor confidence in the resilience and profitability of these financial institutions.
Attractive Dividend Yields: OCBC offers a competitive dividend yield, which has attracted income-focused investors, especially in a high-interest-rate environment that boosts net interest income.
5. $Kasikorn BK TH SDR1to1(TKKD.SI)$
Strategic Investment Shifts: Kasikornbank has been encouraging its high-net-worth clients to diversify their portfolios by moving towards riskier investments, aiming for better returns amid changing interest rate environments. This strategic shift may have positively influenced investor sentiment towards the bank.
Dividend Announcements: The bank's recent dividend declaration of $0.67 per share, payable on May 28, 2024, with an ex-dividend date of April 22, 2024, reflects its strong financial health and commitment to shareholder returns, potentially attracting more investors.
Positive Financial Performance: Kasikornbank's investor presentations have highlighted improved net fee income growth, driven by new strategic initiatives. Such financial metrics can boost investor confidence and contribute to stock price appreciation.
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