KGI Asia Commentary
HSI fell 9 points on Tuesday
The Hang Seng Index fell 9 points or 0.0% to 19,099 on Tuesday. HSTECH fell 6 points or 0.2% to 3,834 and HSCEI rose 15 points or 0.2% to 6,479. Daily market turnover was HK$102.4bn.
S&P 500 rises Tuesday, closes at highest level for 2023
U.S. stocks ended higher as investors renewed interest in regional banks, while a climb in technology stocks also helped offset losses in healthcare stocks. The S&P 500 gained 0.24% to close at 4,283.85, near a nine-month high. It was also the highest close for the broad index since August 2022. The Nasdaq Composite rose 0.36% to close at 13,276.42, also a closing high for 2023. The Dow Jones Industrial Average edged up 0.03%, or 10.42 points, to end at 33,573.2. Financials were the best-performing sector on the day, led by regional banks including US Bancorp, Zions Bancorporation and East West Bancorp. Alphabet, meanwhile, helped lift tech stocks, even as Apple continued to be under pressure. Among health stocks, Elevance Health Inc (ELV), Merck & Co (MRK) and Illumina Inc (ILMN) fell, with the latter down more than 4%, as it continues to battle regulators to salvage a deal to acquire cancer startup Grail. The U.S. Federal Trade Commission asked Illumina to withdraw its $7 billion acquisition of Grail, and Illumina appealed Monday. Boeing Co fell slightly after the plane maker said it would delay delivery of its 737 Dreamliner, citing a production defect. In crypto-related news, regulatory heat rose as the SEC filed a lawsuit against cryptocurrency platform Coinbase Global (COIN), alleging the platform violated U.S. regulations, sending its shares lower 12%. This comes just a day after the SEC sued Binance for multiple security violations, including misappropriating customer funds.
World Bank raises 2023 global growth forecast, but cuts next year's growth forecast
The World Bank raised its 2023 global growth forecast as the U.S., China and other major economies showed more resilience than expected, but said higher interest rates and tighter credit would weigh more heavily on next year's results. Global real gross domestic product (GDP) will grow by 2.1% this year, the World Bank said in its latest Global Economic Prospects report released on Tuesday. That was higher than the 1.7% growth forecast issued in January, but well below the 3.1% growth expected in 2022. The World Development Bank cut its forecast for global economic growth in 2024 to 2.4% from 2.7% in January, citing the lagged impact of tighter central bank monetary policy and tighter credit conditions that are reducing business and residential investment.
Hong Kong Stock Connect had a net outflow of HK$8.1bn on Tuesday, of which China Mobile (941) had the largest net inflow, reaching HK$0.23bn; followed by PetroChina (939). Tracker Fund (2800) recorded the largest net outflow at HK$6.5bn, followed by HSCEI ETF (2828).
Wen Kit Kenny is a SFC licensed person accredited to KGI Group to carry on regulated activities (for details, please refer to:https://apps.sfc.hk/publicregWeb/indi/AJF244/details). He and/or his associate do not have any financial interest in the recommended issuer or new listing applicant.
The materials contained herein are provided by KGI Asia Limited ("KGI") for information only. While such materials are based on or derived from sources believed to be reliable, KGI makes no representation or warranty (express or implied) as to their accuracy or reliability. Neither the information nor the opinions expressed herein constitute, or are to be construed as, an offer or invitation or solicitation of an offer to buy or sell any securities or investments. KGI and its officers, employees, agents and affiliates may have interests in the securities or investments covered herein and accept no liability whatsoever for any loss or consequence whatsoever (whether direct or indirect) resulting from any use of or reliance by you on such materials.