KGI Asia Commentary
Hang Seng Index fell 54 points on Wednesday
The Hang Seng Index fell 54 points or 0.3% to 16,081 on Wednesday. HSTECH fell 53 points or 1.6% to 3,190 and HSCEI fell 52 points or 1.0% to 5,421. Daily market turnover was HK$103.6bn.
The S&P 500 closed near 5,000, hitting a record high, as corporate profits continued to be strong
The S&P 500 index rose on Wednesday, approaching the 5,000-point mark and setting a new closing high, as investors read corporate earnings reports that pointed to economic prosperity. The S&P 500 index rose 0.82% to close at 4995.06 points. The S&P 500 hit a session high of 4,999.89. The Nasdaq rose 0.95% to close at 15,756.64 points, and the Dow Jones Industrial Average rose 156 points, or 0.4%, to close at 38,677.36 points, a record high. Ford Motor Co shares rose 6%, boosting consumer stocks after the company reported annual guidance and fourth-quarter results that beat analysts' expectations. Uber Technologies posted its first annual net operating profit, thanks in part to strong demand for its ride-sharing and food delivery services during the holidays, and shares ended slightly higher. Snap's stock price plummeted 34% after the social media giant reported quarterly revenue of $1.36 billion, missing estimates of $1.38 billion. New York Community Bancorp shares fell 1% even as the regional bank sought to calm concerns about its financial strength, saying it had a strong enough liquidity base to cover bank deposits without U.S. government guarantees. JPMorgan Chase & Co. and BofA Securities downgraded the stock.
Alibaba's revenue grew 5% yoy last quarter, slightly lower than expected
Alibaba announced its third quarter results for fiscal year 2024. Revenue was RMB260.348bn, increase 5% yoy, slightly lower than Bloomberg's forecast of RMB 261.247bn. Adjusted EBITA increased by 2% yoy to RMB52.843bn. Non-GAAP net profit was RMB47.951bn, a decrease of 4%. The group also announced that the board of directors has approved an increase in the share repurchase plan by US$25 billion, which will be valid until the end of March 2027. After adjustment, there will still be US$35.3 billion under its share repurchase program in the next three fiscal years. The group said it expects to have further update in early April.
Hong Kong Stock Connect had a net outflow of HK$2.35bn on Wednesday of which China Mobile (941) had the largest net inflow, reaching HK$0.27bn; followed by China Shenhua (1088). Tencent (700) recorded the largest net outflow at HK$0.46bn, followed by SMIC (981).
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