Lotte Chemical Titan Holding Bhd shares fell to their lowest level since April 2020 on Thursday, with investors reacting to widening quarterly losses and an uncertain future. The company’s stock dropped by as much as 4.5 sen, or nearly 5%, to 91.5 sen , giving it a market capitalisation of RM2.13 billion . The petrochemical company faces challenges as product spreads remain under pressure due to a global supply glut , primarily from new capacity expansions in China . Analysts at TA Securities noted that Lotte Chemical is likely to stay in the red “over the next few quarters” and maintained a 'sell' rating on the stock. The company has reported quarterly losses since 2QFY2022 and is expected to continue to report losses through this year. Analysts estimate that Lotte Chemical may not return to profitability for another two years , according to Bloomberg consensus data. A significant challenge for Lotte Chemical is the squeeze in spreads between naphtha costs and polymer sel
Survey Shows American Wealth Set to Grow Under Either Trump or Harris, With Stocks Expected to Benefit
A recent Bloomberg survey reveals that the wealth of American investors is poised to grow, regardless of whether Donald Trump or Kamala Harris wins the upcoming November 5 election. The survey suggests that stocks are expected to perform well under both candidates, though Trump is viewed as more favorable for Bitcoin and gold, while a Harris presidency could provide a slight relief in housing costs.
According to the Bloomberg Markets Live Pulse survey, 38% of respondents believe stock market gains will accelerate under Trump, compared to 13% who anticipate the same under Harris. Still, nearly half of investors expect the stock market to continue its strong performance under the Democratic candidate, with 59% predicting similar results under Trump.
Historical data shows that US elections tend to have a limited long-term effect on the markets. Analysts at Deutsche Bank AG, led by Jim Reid, note that 13 of the last 15 US presidents saw annualized stock returns of between 10% and 17%, regardless of party affiliation. In fact, the S&P 500 has historically tended to rally by 6.6% on average in the six months following an election.
In terms of housing, Harris is seen as having a more favorable impact on mortgage rates. Survey participants estimate that mortgage rates could fall to 5.5% under Harris, compared to 5.9% under Trump. With mortgage rates currently at 6.54%, many potential buyers have been waiting for borrowing costs to decrease, as high rates have strained housing affordability.
Meanwhile, gold, a popular haven asset, is expected to rally further under Trump, with 57% of survey respondents anticipating higher gold prices compared to 45% under Harris. Bitcoin is also forecast to hit a new record above $80,000 if Trump wins, while under Harris, it is expected to reach $65,000.
The survey, conducted from October 21-25, involved 350 respondents, including portfolio managers, economists, and retail investors.
source: bloomberg
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