KGI Asia Commentary
Hang Seng Index rose 162 points on Friday
The Hang Seng Index opened 140 points lower last Friday, opening at 16,246 points, and fell 162 points throughout the day to close at 16,224 points; the HSCEI Index fell 57 points, or 1%, to 5,746 points; the Hang Seng Technology Index fell 79 points, or 2.3%, to 3,278 points . The total daily turnover of the market was HK$106.1 billion. Li Auto (2015) announced that the price of its L6 model starts at RMB$249,800, and its stock price fell 7.4% to HK$106.3. Oil stocks performed well as geopolitics heated up, with CNOOC (883) and PetroChina (857) rising 1.2% and 2.3% respectively.
Chip stocks retreat
U.S. stocks closed mixed on Friday. The Dow Jones Industrial Average rose 211.02 points, or 0.56%, to 37986.40 points; the Nasdaq fell 319.49 points, or 2.05%, to 15282.01 points; the S&P 500 Index fell 43.89 points, or 0.88%, reported 4967.23 points. The three major U.S. stock indexes had mixed gains and losses last week, with the Dow Jones Industrial Average rising slightly by 0.01% this week. The S&P 500 index fell 3.05% in a week, recording its largest weekly decline in six months and recording its third consecutive weekly decline.
In terms of sector, AI chip stocks fell significantly, with NVIDIA fell 10%, ARM fell 16.9% and Super Micro Computer fell 23.14%. The rapid sell-off of chip stocks was caused by TSMC's earlier lowering of the growth forecast for the chip market and the market pointing out that Super Micro Computer did not announce its preliminary performance before its official results. The market assumed that the latest performance was not as good as expected, which led to a profit taking for global semiconductor stocks.
The U.S. will release key economic data this week
Recently, the market's constantly changing their expected schedule of interest rate cuts, the escalation of the political crisis in the Middle East, and the rapid selling of the latest AI chip stock performance have caused market volatility to rise. The market continues to pay attention to changes in news updates and economic data to make strategic allocation adjustments. Later this week, the PCE data and first-quarter GDP growth performance of the United States will be announced, both of which are the focus of the market.
Hong Kong Stock Connect saw a net inflow of HK$7.432 billion on Friday. Among them, Bank of China (3988) had the largest inflow, reaching HK$1.15 billion; followed by Tencent (700). Li-Auto (2015) recorded the largest net outflow of HK$313 million, followed by Kuaishou (1024).
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.
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