Macquarie named its 10 “highest conviction” stocks that it believes present buying opportunities for investors amid the current market volatility and sharp sell-off across global markets. The Australian investment bank’s analysis comes as markets grapple with concerns over a potential U.S. recession and the unwinding of the Japanese yen carry trade. In response, Japan’s stock markets declined by over 12% on Monday before trimming those losses on Tuesday, while the S & P 500 index suffered its worst single-day performance in nearly two years with a 3% one-day decline. Technology and banking stocks were among the hardest-hit sectors. Amid this turmoil, Macquarie has unveiled its list of top picks, focusing on companies that still have their strong fundamental growth drivers intact. The stocks below, according to the bank’s analysts, have “borne the brunt of the recent drawdown” but are expected to emerge stronger as the current bout of volatility subsides. TSMC , Hitachi , TEL, NEC , SK Hynix , Wiwynn , Alchip , Sugi , Daiichi Sankyo , and HD Hyundai Electric were among the ‘highest conviction’ stock ideas. Most of the name stocks also trade in the U.S. over the counter, albeit at low volumes. “As stock pickers, we focus on a basket of stocks that we believe will emerge from the current drawdown, and which will present a buying opportunity for investors as this bout of volatility subsides,” said Macquarie equity strategists led by Peter Williamson in a note to clients on Aug. 6. Notably, the list is heavily weighted toward the technology sector, particularly semiconductor companies. This focus comes despite recent concerns surrounding graphics processing unit manufacturer Nvidia , which Macquarie believes are “overdone.” The selection also includes companies from Japan, South Korea, and Taiwan, reflecting Macquarie’s view on the resilience of certain Asian markets. While acknowledging the complexity of the current market environment, Macquarie remains optimistic about the long-term prospects of its chosen stocks. The bank emphasized that these companies have “fundamental growth drivers that we expect will withstand these emerging macro uncertainties.”
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