Tencent Music, Cloud Music Lead Music Shares to New Report Excessive

Two Chinese language music streaming firms, Cloud Music and Tencent Music Leisure, led all music shares in a second consecutive record-setting week.

Cloud Music surged 31.5% to 121.50 HKD ($15.63) and Tencent Music Leisure jumped 24.6% to $12.27, benefitted from a surge in Chinese language shares this week. Cloud Music set a brand new 52-week excessive of 123.40 HKD ($15.88) on Friday and introduced its year-to-date achieve to 35.4%. Earlier than the present upswing, Tencent Music had misplaced greater than half its worth since hitting its 52-week excessive of $15.77 on Could 16. Now, Tencent Music’s year-to-date achieve stands at 36.2%.

Chinese language shares had their finest week since 2008 as traders reacted to the nation’s stimulus plan introduced Tuesday. Among the many parts of the plan is a provision to permit banks to lend to firms to repurchase their shares and permitting main shareholders to purchase bigger stakes in firms. Consequently, the Shanghai Composite Index, which measures all shares traded on the Shanghai change, shot up 12.8% this week. 

Led by China’s two largest music streaming firms, the Billboard World Music Index, a float-adjusted index of 20 music enterprise shares, rose 4.4% to a file 1,956.63 within the week ended Sept. 27. The BGMI has gained 12.2% within the final three weeks and reached a brand new file excessive for the second consecutive week. The index had 14 shares in constructive territory and simply six of the 20 shares within the purple.

Music shares simply outperformed most main indexes. In the US, the Nasdaq composite gained 1.0% to 18,119.59 and the S&P 500 rose 0.6% to five,738.17. In the UK, the FTSE 100 was up 1.1% to eight,320.76. South Korea’s KOSPI composite index rose 2.2% to 2,649.78. 

Okay-pop shares additionally had an impressive week. The 4 main South Korean music firms, which have all shed vital worth in 2024, posted a median achieve of 14.4%. YG Leisure rose 18.3%, SM Leisure jumped 16.9%, JYP Leisure improved 14.2% and HYBE climbed 8.1%. 

Spotify, the BMGI’s most useful part, rose 1.1% to $369.13. Through the week, Spotify shares rose as excessive as $389.96—a brand new all-time excessive—however fell $20 by the tip of Friday. Common Music Group, the BGMI’s second-most invaluable part, gained 4.9% to 23.86 euros ($26.66). On Friday, Kepler Cheuvreux upgraded UMG to “maintain” from “cut back” and lowered its worth goal to 23.50 euros ($26.25) from 27.00 euros ($30.16). 

SiriusXM was one of many week’s few losers, dropping 2.2% to $24.39. Morgan Stanley on Tuesday advised traders that SiriusXM faces the chance of “additional a number of compression” because of a restricted outlook for subscriber and income development. In different phrases, if SiriusXM was valued at, say, 15 instances earnings earlier than curiosity, taxes, depreciation and amortization (EBITDA), its development prospects would possibly benefit a decrease a number of. 

Music streaming firm LiveOne had the week’s largest decline of 23.2%. Radio broadcaster Cumulus Media fell 8.6% and French music streamer Deezer dropped 8.0%.