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Speaker 1: Well, since dynamism is very much in the air this morning,

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Speaker 1: let's welcome to the air waves the dynamic Nishi rach Aduri,

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Speaker 1: head of APAC Equity Research at BNP Paraba. Sorry I'm

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Speaker 1: an issue if you don't get our little inside joke,

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Speaker 1: but yeah, we've been talking about dynamic zero in China

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Speaker 1: a lot, and for our colleagues over at the Market's

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Speaker 1: live blog, they'd like to get your views on where

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Speaker 1: you see the most value in China. And because that's

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Speaker 1: maybe too broad of a question, let me ask you

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Speaker 1: do you see do you see more value in the

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Speaker 1: equity market, in the oil patch, in materials or in technology.

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Speaker 1: I would say a bit of an investing in China.

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Speaker 1: One has to look at it thematically. UM Number one. UM,

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Speaker 1: the Chinese government has been trying to stabilize the economy

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Speaker 1: using infrastructure investments, so we would think that industry would

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Speaker 1: play an important rule UM gonna in terms of stabilizing

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Speaker 1: the economy and also in terms of earnings growth going forward.

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Speaker 1: We're already seeing signs of EPs estimates moving up in industrials,

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Speaker 1: so that would be one of the choices I would make.

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Speaker 1: Apart from this, UM, I would say consumer discretionaries which

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Speaker 1: are also sharing similar signs of earnings inflection upwards, but

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Speaker 1: very selectively, I would rather focus on those companies which

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Speaker 1: are market leaders and therefore have significant degree of pricing power. Third, UM,

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Speaker 1: I would also look at the beaten down technology sector,

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Speaker 1: you know, which I think you talked about briefly, um,

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Speaker 1: because we think that much of the regulatory pressures are

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Speaker 1: possibly already behind us. UM. So those are the three

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Speaker 1: important areas. Finally, also some of the financials banks insurance

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Speaker 1: against selectively those ones which have relatively better UM asset

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Speaker 1: quality and very high degree of dividend deals. In act,

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Speaker 1: high dividend deal is a theme that we're playing across Asia. Minisi.

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Speaker 1: Does things Do things change after the Party Congress just

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Speaker 1: very quickly? Um? Of course, you know, so that is

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Speaker 1: something we are looking forward to. As far as the

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Speaker 1: restrictive COVID policies are concerned, now one doesn't know honestly,

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Speaker 1: it is, you know, like throwing a dart at this

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Speaker 1: point of time. But I'm going to post the Party

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Speaker 1: Congress in mid October. UM. Some degree of easing of

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Speaker 1: the policies is the best that we can hope for.

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Speaker 1: So we mentioned that you like India still remaining overweight there.

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Speaker 1: This is a theme that I guess a lot of

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Speaker 1: people we talk to have tell us why you're liking

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Speaker 1: this market. Two or three positive tail winds are current

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Speaker 1: listening together for India. First, a strong recovery in the

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Speaker 1: domestic market. UM. The domestic economy has revived strongly if

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Speaker 1: you look at the tax collection numbers or the freight

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Speaker 1: volume numbers. Second, UM commodity prices, moderating oil prices rolling

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Speaker 1: over that would obviously aid the current count and stabilize

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Speaker 1: the currency. In fact, the Indian currency in this enbandment

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Speaker 1: has been one of the more stable ones and third

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Speaker 1: in some sectors. Not in all the sectors, but in

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Speaker 1: some of them. Earning estimates are beginning to revive UM,

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Speaker 1: one of the most prominent ones of financials, which is

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Speaker 1: you know, almost about of the Indian market. The market

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Speaker 1: is also over sold. About thirty three billion dollars of

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Speaker 1: f I I selling occurred between October last year and

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Speaker 1: July this year, so that's beginning to revive its well.

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Speaker 1: Still in all the valuations are quite high. There are

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Speaker 1: you counting for those revisions and earnings to maybe ease

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Speaker 1: the pressure on those price earnings levels. That's absolutely correct.

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Speaker 1: You know, India has always been expensive and currently it's

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Speaker 1: trading almost at about sixty percent imium if you look

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Speaker 1: at price and earnings or price to book um compared

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Speaker 1: to the Asian average. So yes, valuation is a concern,

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Speaker 1: and particularly the more expensive sectors UM would possibly have

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Speaker 1: to be avoided by investors for now. Um. The market

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Speaker 1: may also see what we call some kind of a

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Speaker 1: time correction or in the market staves flat um and

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Speaker 1: consequently the valuations improve a bit. So I mean there's

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Speaker 1: no easy solution, but still relative to some of the

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Speaker 1: North Asian market, it presents a more stable picture. Many

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Speaker 1: see you overweight Indonesia too, which is basically the outperformer,

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Speaker 1: and at these records, how much further upside here? Ah. Now,

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Speaker 1: Indonesia is again in a slightly different story because we

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Speaker 1: have seen a very strong momentum as far as earnings

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Speaker 1: estimates are concerned, driven by its commodity exporter nature, and

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Speaker 1: that has actually percolated down to some of the domestic

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Speaker 1: sectors like consumer discretionaries as well. It was so on

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Speaker 1: Indonesia we do see um continued upside um, so it

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Speaker 1: is not just a relative trade compared to other Racian markets,

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Speaker 1: that there could be absolute out upside from UM from

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Speaker 1: the current levels. Um. You know, it's difficult to sort

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Speaker 1: of ten point how much, but you know, anything between

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Speaker 1: eight to ten is our yearine target for the j

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Speaker 1: c I so many SIA. A huge tax cut or

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Speaker 1: something like a tax cut for Asia would be if

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Speaker 1: oil prices continue to fall. We did have this death

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Speaker 1: cross form here with the fifty day moving average falling

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Speaker 1: below the two D day. What what are your projections

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Speaker 1: for where oil goes over the next six months? Um,

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Speaker 1: you know what I mean? Of course, I mean I

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Speaker 1: don't deal with the commodity market. I mean we have

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Speaker 1: a different team for that. But yes, I mean I

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Speaker 1: think oil price food declining is a direct reflection of

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Speaker 1: the recessionary concerns in the develop market. So um, you know,

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Speaker 1: as long as these concerns, and particularly in the European region,

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Speaker 1: as long as they persist, um, oil and other commodity

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Speaker 1: prices would possibly continue to drift down and stay at

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Speaker 1: relatively lower lessls, which is obviously as you write to

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Speaker 1: point at and I'll borrow that phrase, it's kind of

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Speaker 1: a tax cut for the Asian region. Which are predominantly

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Speaker 1: commodity importers um so I think consequently, I think the

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Speaker 1: you know, the Asian markets which are purely domestic in nature,

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Speaker 1: which don't really have to export too much to the

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Speaker 1: develop markets. They're all in a really sweet spot, you

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Speaker 1: know there there are domestically driven and at the same time,

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Speaker 1: the costs that they have to pay, the prices that

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Speaker 1: they have to pay for the for the community imports,

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Speaker 1: that's coming down rapidly, and obviously that's going to reflect

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Speaker 1: in their current fees and you know, in the current accounts. Alright, Minishi,

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Speaker 1: thank you. Minishi. Roshattery, head of APEX Equity Research at

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Speaker 1: BMP Paraba, on the line from Hong Kong. Forest