It was a record week after the Chinese Lunar New Year for Chinese display stocks with:
Summing up the rumored foldable announcements expected at the MWC:
IQOO’s Foldable Smartphone
Other brands expected to announce foldable smartphones at MWC include:
Getting back to the panel supplier stock performance, as shown below, DSCC’s Panel Supplier Stock Index (PSSI) rose a record 19.4% last week gaining nearly $6B in market value. BOE’s market cap surged by 36% to $18.5B and its share of the index grew from 45% to 51%. BOE is now up 38% YTD. Tianma was the other stand out performer in the PSSI up 42% and is now up 41% YTD with its market cap rising by around $1B. The next highest results for the week came from CPT and LGD up 5%, JDI up 2% on strong Q4’18 results with HannStar, Innolux and AUO losing round. On a YTD basis, Tianma and BOE now have a wide lead up 41% and 38% respectively with LGD up 7%, Innolux up 3% despite disappointing Q4’18 results and Q1’19 guidance while JDI, CPT, HannStar and AUO are all down.
Recent Stock Price Changes for Panel Suppliers and Major Indexes
YTD Results for Panel Suppliers and Major Indexes
Overall, it was a good week for the stock market with the US large cap index (SPY) rising 2.5% with the emerging market index (EEM) down 0.2%. YTD, the SPY and EEM Are now well behind the PSSI thanks to the great week for Chinese display stocks. Tailwinds this week included a deal to avoid another US government shutdown and progress on US-China trade negotiations which are expected to continue next week. Headwinds included negative US retail data which fell 1.2% in December and was the largest monthly Y/Y decline since September 2009. The consensus was for a 0.1% increase. This data will likely cease the Fed funds rate increase discussion for some time. Excluding automobiles and gasoline, retail sales were down 1.4%, the biggest drop since March of 2009. All but 2 of 13 retail categories fell including online stories which fell 3.9%, the largest decline since November 2008. Only auto detailers and building materials gained.
PSSI vs. SPY vs. EEM Indexed to 12/31/18
Stock Price Results by Index and Panel Supplier Indexed to 12/31/18