Pacific (Australia, Japan, New Zealand, Singapore) 

 
Key Points 
 
1. Australia’s  ASX  All  Ordinaries  Index  was  down  0.04%  this  week.  The  index  has  three 
distribution days and remains in a Confirmed Uptrend. 
2. Australia’s unemployment rate remained unchanged at 5.2% in June. 
3. Japan’s  Nikkei  225  was  down  1.01% and the Topix declined 0.78% this week. On Thursday, 
the  index  fell  1.97%  on  above  average  volume  and  breached  its  key  50-DMA  support.  The 
index  had  three  distribution  days  this  week,  taking  its  total  to  eight.  Hence,  we  moved  the 
index to an Uptrend Under Pressure from a Confirmed Uptrend. 
4. Japan’s core CPI rose 0.6% y/y in June, in line with street expectations. 
5. Japan  logged  trade  surplus  of  ¥589B,  ahead  of  consensus  expectations  of  ¥420B  driven  by 
larger  than  expected  fall  in  imports.  Imports  fell  5.2%  y/y  versus  expectations  of  a  0.4% 
decline. Exports were down 6.7% y/y versus expectations of 5.6% fall. 
6. New  Zealand’s All Ordinaries Index was up 0.48% this week. The index has two distribution 
days and remains in a Confirmed Uptrend. 
7. New  Zealand’s  CPI  rose  1.7%  y/y  for  Q2, in line with street expectations driven by a rise in 
fuel prices. 
8. Singapore’s  Straits  Times  Index  was  up  0.61%  this  week.  The  index  has  two  distribution 
days and remains in a Confirmed Uptrend. 
9. Singapore’s  non-oil  domestic  exports  were  down  17.3%  y/y  in  June,  largely  missing  street 
expectations  of  9.9%  drop  driven  by  a  decline  in  electronics  exports.  This  was  the  highest 
drop in six years. 
 
Stocks of Interest 
 
● A2 Milk Company​ ​(​A2M.AU​; ​A2M AU)​ – $8.3B market cap 
A2 Milk produces and distributes premium dairy products in domestic and overseas markets. 
A2 Milk is Australia's leading premium fresh milk brand, with a value share of 9.8% in June 
2018. H1 FY19 revenue by product: infant formula, 81%; liquid milk, 14%; other nutrition, 
5%. In H1 FY19, the Company’s revenue and net income grew 41% and 55%, y/y, 
respectively. EBITDA was up 53% y/y, with the EBITDA margin reaching 36% (+300bps 
y/y). While marketing spend in China and the U.S. for H1 FY19 rose 75% y/y, the 
Company plans to double the investment in H2 FY19, even if it dents the EBITDA margin. 
The Company intends to maintain EBITDA margin at 31–32% in FY19, lower than the 
previous year’s 34%. The stock has a strong RS Rating of 87 and an A/D Rating of B. 
Composite and SMR Ratings are solid at 98 and A, respectively. The stock remains 
actionable.. 
 
 
Important Dates 
 
July 23​ – New Zealand June trade balance 
July 25​ – Singapore June unemployment rate 
July 26​ – Singapore June industrial production  
 
 

Asia Pacific (Hong Kong) 

 
Key Points 
 
1. The Hang Seng gained 1.0% this week driven by China data, which were better than estimates 
and increased expectations of a rate cut by the U.S Fed later this month. The index is trading 
constructively above its 50-DMA support and remains in a Confirmed Uptrend. Key levels to 
watch, support at ~28,000 (50-DMA) and resistance at ~29,000 (recent swing high). 
2. We did not make any changes to our Hong Kong Focus List this week. On average, the list 
gained 0.5% driven by Yichang HEC Changjiang Pharma (YHEC.HK; 1558 HK) and China 
Merchants Bank (CMBC.HK; 3968 HK). 
3. China’s Q2 GDP growth was 6.2% y/y, in line with market expectations. This was the lowest 
growth since Q1 1992. 
4. China’s industrial production expanded 6.3% y/y in June, improving from 5% growth in May 
and beating expectations of 5.2%. 
5. China’s retail sales in June increased 9.8% y/y, beating estimates of 8.5%. This is the fastest 
growth since March 2018. 
6. Hong Kong’s unemployment rate for June was unchanged at 2.8%.. 
 
Stocks of Interest 
 
● Yichang HEC Changjiang Pharma (YHEC.HK; 1558:HK)​ – $1.24B market cap 
HEC Pharma manufactures and sells pharmaceutical products in China. Kewei, an anti-viral 
drug, remains the company’s core product and accounts for 90% of total revenue. The 
company is poised to grow on the back of a rise in flu cases and deeper penetration into 
Chinese hospitals. The stock has strong O’Neil Ratings and is trading in the pivot range, 
turning actionable. 
 
 
Important Dates 
 
July 22​ – Hong Kong June inflation rate 
July 25​ – Hong Kong June trade balance 
 
 
 

Europe (the U.K., the EU)

 
Key Points 
 
 1. On Thursday, the Stoxx 600 closed 0.01% below last Friday’s close and is in an Uptrend Under 
Pressure, with the market status downgraded after it undercut its 21-DMA despite not adding a 
distribution day. During the week, we also downgraded Denmark, Finland, and Sweden to an 
Uptrend Under Pressure. Of the 17 indices we cover, 11 are in a Confirmed Uptrend, five are in 
an Uptrend Under Pressure, and one is in a Rally Attempt. 
2. The eurozone’s industrial production increased 0.9% m/m in May, much ahead of the expected 
0.2%. 
3. The eurozone’s CPI increased 1.3% y/y in June, beating expectations of 1.2%. 
4. The U.K. CPI increased 2.0% y/y in June, in line with expectations. 
5. The U.K. retail sales were up 1% m/m in June, well above analysts' expectations. 
 

Stocks of Interest 
 
● Puma (PUMX.DE; PUM;GR) ​- $10.21B market cap 
Puma is one of the world’s leading sports, footwear, and apparel brands and has been in the sportswear 
market for over 70 years. The Company distributes its products in more than 120 countries 
through retail, wholesale, and ecommerce channels. Puma’s turnaround is entering a new phase, 
driven by its expansion into key regions, new segments (basketball in North America), new 
products (RS-0 and Thunder), the development of directly operated stores, and the expansion of 
its ecommerce channel. The expansion of the brand into new regions and segments, the launch 
of new products, and the strengthening of retail channels including ecommerce will drive its 
growth. The stock broke out of a seven-week flat base on good volume, with an RS Rating of 88 
and an A/D Rating of C. 
 
● Stroeer (Xet) (SAXX.DE; SAX:GR) ​- $4.11B market cap  
Stroeer provides out-of-home (OOH) and online advertising services in Germany and also offers 
communication solutions along the media value chain. Its OOH advertising market share in 
Germany almost doubled to 7% in 2018 from 4% in 2008. The Company focuses on a single 
geography and has exited from businesses in Turkey. Most public video screens are connected to 
a majority of demand-side platforms, including Tradedesk (TTD), Mediamath, and Adform for 
programmatic advertising. The Company acquired a majority stake in Statista in 2015 for €90M 
based on a 10x revenue multiple. It acquired the remaining stake at a 10x revenue multiple in 
2019. The stock broke out of a stage one, five-week flat base on above-average volume with an 
RS Rating of 91 and an A/D Rating of B+ 

Important Dates 
 
July 23 – Finland unemployment rate 
July 24 – Finland PPI, France manufacturing PMI, Germany manufacturing PMI, EU manufacturing PMI   
July 25 – ECB interest rate decision 
July 26 – Denmark retail sales 
 
 
Canada 
 
 
Key Points 
 
 
1. The  TSX  Composite  gained  0.04%  through  Thursday.  The  index remains in an Uptrend Under 
Pressure  with  a distribution day count of six. We will move the index to a Confirmed Uptrend if 
it  closes  above  ~16,670,  the  high  of  its  previous  rally.  The  index  has  immediate  support  at  the 
50-DMA  (+0.8%).  The  index  is  trading  1%  off  highs  and  is  up  15.2%  year-to-date.  This week, 
gains  in  Basic  Material  (+3.4%)  and  Health  Care  (+2.1%)  were  offset  by  losses  in  Energy 
(-2.8%)  and  Retail  (-1.9%)  sectors.  The  Energy sector declined as oil prices fell following easing 
tensions  between  Iran  and  the  U.S.  after  Iran  expressed  willingness  to  negotiate  with  the  U.S. 
about  its  ballistic  missile  program.  The  Canadian  Dollar  gained  over  the  possibilities  of  a  rate 
cut  by  the  U.S.  Federal  Reserve  and  on  Fitch  Ratings  reaffirming  Canada’s  Long-term  Foreign 
Currency Issuer Default Ratings​ at ​AAA with a stable outlook. 
2. Canada’s  CPI  increased  2%  y/y  in  June  compared  with  a  2.4%  rise  in  May,  in  line  with 
consensus  estimates.  The  inflation  was  lower  as  energy  prices  declined  4.1% y/y in June due to 
decreasing  oil  prices  amid  rising  fuel  inventories  in  the  U.S.  The  CPI  declined  0.1%  m/m  in 
June compared with 0.3% gain in May on a seasonally adjusted monthly basis. 
3. Canada’s  retail  sales  declined  0.1%  m/m  in  May  compared  with  0.3%  increase  in  April,  below 
consensus of an increase of 0.1%. Sales declined in four of 11 sectors, representing 39% of retail 
trade.  Sector  wise,  increase  in  sales  at  cannabis  stores  (+14.8%)  and  gasoline  stations  (+3.5%) 
were  offset  by  declines  in  clothing  stores  (-2.7%)  and  food  and  beverage  stores  (-2.0%). 
Province wise, sales declined in Nova Scotia (-2.3%), Alberta (-1.7%), and Manitoba (-1.6%). 

 
Stocks of Interest 
 
● Constellation Software (CSU.CA; CSU:CN)​ – $20.2B market cap 
Constellation Software acquires, manages, and builds vertical market software, which provides 
solutions that address specific customer needs. The company continues to grow through 
acquisitions, aided by improving revenue mix that is shifting toward high-margin segments, most 
notably maintenance. In 2018, maintenance revenue increased to 65% of total revenue (54% in 
2010) and professional services revenue shrank to 21% of total revenue (27% in 2010). The 
stock has best-in-class fundamental ratings (Composite Rating of 99, SMR Rating of A, EPS 
Rank of 99) and good technical ratings (RS Rating of 87, A/D Rating of C). 
 
● SSR Mining (SSRM.CA; SSRM: CN) ​– $1.9B market cap 
SSR Mining is a Vancouver-based mining company focused on operation, development, 
exploration, and acquisition of precious metal projects. It operates three mines including 
Marigold mine in Nevada, the U.S., the Seabee Gold Operation in Saskatchewan, Canada, and 
 the 75% owned and operated Puna Operations joint venture in Jujuy Province, Argentina. The 
company is set to ramp up its gold and silver production this year and expects substantially 
lower cash costs over the next three years. The stock has best-in-class Composite Rating of 99, 
SMR Rating of B, and EPS Rank of 61. It has solid technical ratings, with an RS Rating of 92 
and an A/D Rating of A-. 
 
Important Dates 
 
Intentionally left blank 

EMEA (Israel)

Key Points 
 
1. Israel's Tel Aviv 125 Index was down 0.77% on Thursday. It lost 1.76% during the week and 
remains in a Rally Attempt. 
2. Israel’s annual inflation rate decreased to 0.8% in June from 1.5% in May. Costs slowed for 
housing, dwelling maintenance, and other foods, while prices declined for transport & 
communications and vegetables & fruits. 
 
Stocks of Interest 
 
Intentionally left blank 
 
Important Dates 
 
July 22​ – Israel May industrial production and June manufacturing PMI