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Favorable Market Conditions Support Global Equity Rally
Sector Highlights
Healthcare:
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UCB:
Strong demand for Bimzelx, a new treatment for psoriasis and autoimmune disorders.–
Novo Nordisk:
Promising clinical trial results for Amycretin, a new obesity drug.Materials:
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Linde:
Expanding cash flow margins and a strong project backlog.–
CRH:
Revenue growth driven by the construction boom in the Americas.Industrials:
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BAE Systems:
Benefiting from higher defense spending.–
Safran:
Increased operating income on strong demand for LEAP engines.Financials:
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UBS:
Positive impact from its merger with Credit Suisse, despite a Swiss Competition Commission investigation.Information Technology:
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ASML Holding:
High demand for its lithography-extreme ultraviolet technology in semiconductor manufacturing.–
Temenos:
Expected to benefit from increasing industry cost pressures and a shift towards cloud-based banking software.Portfolio Positioning
– Increased exposure to defense companies, including BAE Systems and LIG Nex1.
– Investment in Melrose Industries for its strong position in the lucrative aftermarket aerospace business.
– Expanded positions in Wizz Air, Lonza, Argenx, and Japanese companies such as Resona Holdings and Mitsui Fudosan.
– Exited positions in premium liquor, consumer products, and certain technology holdings due to slowing sales volumes or concerns about fundamentals.
Outlook
– Moderating inflation and steady growth create a favorable investment environment.
– Potential macro- and micro-level risks are being closely monitored.
– Continued search for sustainable growth investment opportunities.
