Shares of JP Morgan Chase & Co. traded at $90.03 during the recent session, marking a move of -0.72%, or $0.65 per share with a trading volume of 14.25 million shares.
The stock changed hands between a range of $89.79 and $91.17 at the opening bell, and recorded a total float of 3.57 billion shares with an average traded volume share of 14.77 million per day.
Ahead of the various outlooks on Indian equities, JP Morgan Chief Asian & Emerging Market Strategist Adrian Mowat cited his views as generally positive and became particular on the emerging market equities.
However, there were still some focal points about the latter that concerned him.
Sector allocation towards India is among his concerns as the American financier is underweight on information technology, healthcare, and consumer staples.
Reasons Why Sectors Decline
The first two sectors were broadly lower due to the risk of Indian companies stemming from US policy.
Additionally, as the present administration views outsourcing would hurt US interests, Indian technological companies like Infosys might see revenues under pressure as it obtains a major portion of their business in the US.
Elsewhere in the healthcare companies of India, Dr. Reddy’s Laboratories Limited has been included on the Priority Watch List in the 2017 Special 301 Report by the US Trade Representative as there are concerns over the intellectual property and high tariffs and taxes on medicines.
Given a protectionist stance on medicine exportation to the US, it has sent Indian pharmaceutical companies under pressure, in which 40% of the top four Indian drug manufacturers’ revenues remain under pressure on import regulations.
Moreover, JP Morgan dampened optimism for a growth on the sectors, as far as consumer staples is concerned.
An Investing Team for Investment Goals
As JP Morgan Asset Management aims at sustaining its investing strategy, a leadership has been formed not only to help clients achieve their goals, but also to accomplish both social and government investment ends.
The investing strategy was called Sustainable Investment Leadership Team or SILT, which is formed by senior leaders, portfolio managers and JP Morgan AM client advisers that will be headed by Jamie Kramer, head of global investment management.
During the formation of SILT, Kramer said it will “bring together insights and best practices across investment capabilities.”
The chart below illustrates JP Morgan Chase & Co. stock movement amid a protectionist stance on medicine exportation to the US, which sent Indian pharmaceutical companies to remain under pressure. The stock is currently trading at $91.16 in a light trading volume of 5563, near support 89.88.
Hence, given a bearish tone on the company’s stock, the RSI suggests that the oversold level hasn’t been reached. It could therefore signal that the stock could further drop unless shares will rebound.
As JP Morgan Chase & Co. stocks were seen dropping in the recent sessions, we can suggest that market participants could still wait for clearer signals if the price will test its current support level.
However, we currently see a consolidating path if the price will remain above its support level and if the sectors will continue to drop over medicine exportations.
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