Latest news with #TempletonGlobalEquityGroup
South China Morning Post
9 hours ago
- Business
- South China Morning Post
Hong Kong's stock rally still has room to run on ‘reasonable' valuations, Templeton says
Hong Kong stocks remain favourable, as attractive valuations and easing tariff uncertainty have enhanced the predictability of corporate earnings on the city's stock market, according to US fund manager Franklin Templeton. Advertisement The firm, which manages US$1.5 trillion of assets worldwide, was 'constructive' on Hong Kong and mainland China's stock markets, as the valuations remained reasonable and Beijing had introduced supportive policies, said Ferdinand Cheuk, portfolio manager at Templeton Global Equity Group, on Wednesday in a briefing. While the city's benchmark Hang Seng Index had surged more than 25 per cent so far this year, outperforming major indices globally, the momentum could be maintained through stock selection and positioning in certain sectors, he said. The average price-to-earnings ratio among Hong Kong stocks stood at around 10.8 times, slightly above the 10-year average of 10.4 times, Cheuk said. By comparison, the constituents of the Standard & Poor's 500 index traded at an average of 25 times, while Nasdaq stocks averaged 35 times, according to Bloomberg's data. Ferdinand Cheuk Siu-yuen, Senior Vice-President and Portfolio Manager at Templeton Global Equity Group, during the Franklin Templeton press conference on January 16, 2019. Photo: Tory Ho In addition, the decreasing uncertainty from the US-inflicted trade tensions would be helpful for fund managers and investors to predict companies' earnings, Cheuk said. Advertisement 'We believe it is fair to say that the risks from Trump's current trade war and trade policies will diminish in the future,' said Christy Tan, investment strategist at Franklin Templeton Institute, at the same briefing. Tan added that the US tariffs on China's imports were largely expected to be below 40 per cent.
Business Recorder
11-08-2025
- Business
- Business Recorder
European shares start pivotal week lower
FRANKFURT: European shares ticked lower on Monday, as investors refrained from making big bets ahead of an eventful week packed with tariff negotiations and ending with talks between the US and Russia on the war in Ukraine. The pan-European STOXX 600 index closed 0.1% lower, retreating from gains earlier in the day, but still hovering near its highest level since July 31. Investors will be bracing for the summit on Friday in Alaska, where Kyiv fears Russian President Vladimir Putin and US President Donald Trump may try to dictate terms for ending the 3-1/2-year war. A German government spokesperson said, however, that European leaders will hold a virtual meeting with Trump ahead of the summit, after they backed Ukrainian President Volodymyr Zelenskiy to take part in the talks. Hopes of a peace deal weighed on German defence companies, with Rheinmetall dropping 4.6%, while Renk fell 1.6%. Germany's benchmark index slipped 0.4%, while the broader aerospace and defence index was off 1.1%, after hitting an over one-month low in the session. 'The provision of defence equipment has largely shifted over the last few months, Europe is now providing a lot more of the defence to Ukraine,' said Craig Cameron, portfolio manager and research analyst at Templeton Global Equity Group, on the impact of a potential peace deal on European defence firms. A 29.6% plunge in Danish wind farm developer Orsted after it unveiled a 60-billion-crown ($9.4 billion) rights issue also weighed on stocks. The stock hit a record low and was the biggest decliner on the STOXX 600. Meanwhile, the August 12 deadline for a deal between the US and China looms, with markets expecting a deadline extension and a deal that would avoid imposing triple-digit tariffs on each other's goods. Despite concerns about Trump's tariffs, a strong US earnings season driven by AI optimism, and expectations of interest rate cuts from the US Federal Reserve have pushed US stocks to record highs, dimming the appeal of European equities that were outperforming US peers in the first half of the year. 'The story (has) shifted back to, in particular, the US as tariff deals were negotiated lower and companies like Nvidia and Microsoft have really driven the market higher,' said Cameron.
