Trade Radar | WOW! Sea Ltd soared more than 10%?
Another Weekly Session with Loui, M+ Online Head of Research.
Banning direct transactions on social media platform? President Joko Widodo has decided to ban direct transactions on social media platforms in Indonesia, which has caused a huge blow to the TikTok Shop. Indonesia’s Jokowi bans direct transactions on social media
Why ban? Indonesian officials expressed concerns about the need to differentiate between e-commerce and social media and called for changes in trade laws to regulate this space. One of the primary reasons for considering these regulations is to address predatory pricing practices, where products are sold at unrealistically low prices to eliminate competition. Indonesian officials are worried that such practices harm local businesses. Indonesia mulls over ban on TikTok sales, drawing mixed reactions from shopkeepers
Sea Ltd to benefit from this scenario? Sea Ltd. ( $Sea Limited SE$ ) rose more than 10% on Monday’s trading, following the news that the Indonesian governement considers banning on social commerce going forward. Given Sea’s Shopee platform has been facing a competitive threat from TikTok Shop in Indonesia, any challenges that TikTok sellers face during this period could be beneficial to Shopee and other traditional commerce platforms moving forward.
Bottoming out based on TA view. The market view this positively for Sea Ltd as it is trading near the 3-year low. We believe the downside risk could be limited based on technical analysis, upside target may be located around USD44-45.
| Stock Name | Last Closing (USD) | 1-month Total Return (%) | 3-month Total Return (%) | |
| SE | $Sea Limited SE$ | 40.2 | 11.14 | -31.76 |
(Source: Bloomberg)
More about Loui:
Loui Low leads a team of analysts to perform equity and economic research and to provide investment advisory services to the organization's sales team, fund manager and retail fraternity. He has more than 10 years of experience in the stockbroking industry.
He graduated with a Bachelor of Science in Statistics from University of Malaya. He also holds an STA Diploma and is a member of the Society of Technical Analysts (MSTA) United Kingdom.
More about the Trade Radar:
Trade Radar is a weekly-updated section, featuring Loui's latest insights into market trends and hot topics. Traders may find some trading inspiration from Loui's views.
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