KGI Asia Commentary
HSI rises 91 points on Friday
The Hang Seng Index opened 34 points higher on Friday, at 19,333 points. The index once fell by as much as 68 points, and rose 91 points, or 0.5%, to 19,390 points; the H-Share Index rose 49 points, or 0.7%, to 6,589 points; The Hang Seng Technology Index rose 40 points or 1% to 3,934 points. The market turnover was HK$ 86.6 bn. Chow Tai Fook (1929) announced its fiscal year earnings per share fell 19.8% year-on-year, and it paid a special dividend. The share price rose 3.6%. The Ministry of Commerce issued a notice on nationwide car purchase campaign. BYD (1211) and Li Auto (2015) rose 1.4% and 0.9% respectively.
Nasdaq posts seventh straight week of gains
The three major U.S. stock indexes closed higher last Friday. The Dow Jones index closed up 43 points, or 0.13%, to 33,877 points; the Nasdaq index rose 21 points, or 0.16%, to 13,259 points; the S&P 500 index rose 5 points, or 0.11%, to 4,299 points. Separately, the VIX index, which measures market panic, fell below 14, its lowest level since 2020. In terms of the dollar, it recorded its biggest weekly loss in more than two months, as investors bet that the Federal Reserve's interest rate hike cycle is drawing to an end.
The CIO of Morgan Asset Management said that the current market conditions are similar to the financial crisis in 2008. He believes that the era of low interest rates is over. In addition, the group has repeatedly warned of the risk of economic recession, pointing out that the next few months will be the eve of a storm. will enter recession before the end of the year.
Expect the car sales promotion policy will continue to be launched in the future
Recently, car sales related policies are continued to be announced. For example, the Ministry of Commerce issued the "Notice on Organizing and Carrying out Activities to Promote Consumption of Automobiles" on the 8th of this month. It is pointed out that in the second half of the year, about 100 cities will be linked to carry out automobile consumption promotion activities. To cooperate with the promotion event, it is expected that the promotion of automobile consumption promotion policies will be launched in different cities in China in the future.
Hong Kong Stock Connect had a net outflow of HK$ 1.255 bn on Friday, of which China Mobile (941) had the largest net inflow of HK$410 mn; followed by Bilibili (9626). Tracker Fund (2800) recorded the largest net outflow of HK$2.77 bn; followed by China Southern Hang Seng Technology Index ETF (3033).
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