Southern Dongying regional market morning report 20240604 | Japan implements its largest-ever forex intervention; Aramco's stock demand eases market difficulties

• Financial Minister Toshimitsu Suzuki of Japan stated that the government intervened in the currency market over a month ago to address excessive currency fluctuations driven by speculative trading. This is the first official admission after government data released on Friday showed expenditures of 9.8 trillion yen (about 62.7 billion U.S. dollars) to support the yen.

· On May 31, the Japanese Ministry of Finance announced the actual foreign exchange intervention situation from April 26 to May 29. The total intervention amount was 9.7885 trillion yen. This reflects the suspected intervention measures of buying yen and selling dollars implemented on April 29 and May 2, marking the second intervention since October 2022. Compared to past interventions under the situation of yen depreciation, the scale of this intervention set a historic new record. This was a secret intervention that was not immediately announced following the intervention.

AlJazira Capital's research director stated that although the profits of companies listed on Tadawul (excluding Aramco) increased significantly by about 8% in the first quarter of 2024, achieving year-on-year growth for the first time after five consecutive quarters of decline, the recent pressure faced by Tadawul may not only come from news about the secondary listing of Saudi Aramco. Recent geopolitical tensions and oil price fluctuations in the region, their impact on oil revenue, and their impact on the economy and local growth prospects may be considered as one of the recent key pressure factors.

Many analysts believe that the selling pressure in May is normal due to the secondary offering of Alibaba and ongoing high inflation and interest rates.

They also point out that the demand for the Saudi Aramco's secondary offering is a positive factor to offset the negative impact and restore liquidity to normal levels.

o Grab is using generative AI to improve operational efficiency and manage variable cost structures, while expanding business, marketing, and benefiting from cloud cost savings.

o Grab focuses on cost management and prudence in its fintech business, with management believing its digital bank business can achieve profitability within three years.

o Citi maintains a buy rating on the stock, with a target price of $5.00. Grab ADR closed at $3.67 yesterday.

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