Confetti drops on traders and clerks as they work on the financial floor at the CME Group Inc.’s Chicago Board of Trade in Chicago, Illinois, U.S.(Photographer: Tim Boyle/Bloomberg)

The Biggest Asia Stock Winners and Losers of 2018

(Bloomberg) -- Asian equities have lost about $5 trillion in value and the benchmark is poised for its worst annual decline since 2011. But look closely and it’s the only regional benchmark index globally to produce stocks whose values have increased several times from the start of the year.

The share prices of the top two gainers on the MSCI Asia Pacific Index have more than tripled this year and seven others have doubled their stock values. This came at a time when the regional gauge entered a bear market earlier this year, falling 22 percent from its January peak. U.S. and European benchmarks, which have come close to entering bear territory, have had no such share performances.

“As it is, 2018 has been pretty eventful,” said Christina Woon, Asian equities investment manager at Aberdeen Standard Investments in Singapore. “The approach remains consistent in this environment, where unwarranted and outsized reactions that belie underlying fundamentals can provide opportunities to capitalize on selectively.”

Stock-pickers galore? The so-called multibaggers in Asia may underscore the “bottom up” approach to stock selection amid volatility caused by the U.S-China trade war and Federal Reserve’s interest-rate hikes.

Here are the top Asian stock winners and losers of the year:

Winners

Company2018 Gain Reason
Pabrik Kertas Tjiwi Kimia Tbk280%Demand for packaging from the booming global online retail scene.
PT Indah Kiat Pulp & Paper Corp. 114%Same as above.
Fila Korea Ltd.228%The stock hit a record in November after the company’s third-quarter operating profit doubled year-on-year.
Yihai International Holding Ltd.156%Shares piggybacked off the rally in Haidilao International Holding Ltd., which became Asia’s biggest listed restaurant operator after its Hong Kong IPO.
Daewoo Shipbuilding & Marine Engineering Co.146%Strong orders and other signs of turnaround in the sector across the region gave this stock a boost.

Losers

Company2018 LossReason
Meitu Inc.80%The stock slumped amid data privacy concerns and a profit warning.
Brilliance China Automotive Holdings Ltd.72%Extended its decline after it agreed to give BMW AG control of their joint venture, diminishing its exposure to future growth in the world’s largest auto market.
Sharp Corp.72%Signs of potential slowdown in demand for Apple Inc.’s iPhones and use of rival products have weighed on the shares.
AAC Technologies Holdings Inc.67%Same as above.
Vodafone Idea Ltd.65%Competition from billionaire Mukesh Ambani’s Reliance Jio Infocomm Ltd. has weighed on the stock

Arthur Kwong, head of Asian equities at BNP Paribas Asset Management in Hong Kong, has the “bottom up approach for stock picking” down pat.

“Companies with sound environmental, social and governance practices are typically higher quality companies which are more likely to generate sustainable earnings over the long term,” he said.

©2019 Bloomberg L.P.