Market Insight
2024.05.08 12:07
{Market Preview}HSBC may reach HKD 75 after ex-dividend date
[ET Net News Agency, 08 May 2024] The Hang Seng Index reported 18,410 in the morning
session, down 69 points or 0.4%. The main board turnover reported about HKD 67.2 billion.
The Hang Seng China Enterprises Index reported 6,499, down 27 points or 0.4%. The Hang
Seng Tech Index reported 3,897, down 24 points or 0.6%.
The top three traded stocks on the HSI are Tencent (00700), Xiaomi (01810), and Meituan
(03690). Tencent closed at HKD 362.4, down HKD 3.4 or 0.9%, with a turnover of HKD 3.557
billion. Xiaomi closed at HKD 19.04, up HKD 1.1 or 6.1%, with a turnover of HKD 3.508
billion. Meituan closed at HKD 114.2, down HKD 1.3 or 1.1%, with a turnover of HKD 1.923
billion. The top three traded stocks on the Hang Seng China Enterprises Index are also
Tencent, Xiaomi, and SenseTime (00020). SenseTime closed at HKD 1.52, down HKD 0.13 or
7.9%, with a turnover of HKD 2.035 billion. The top three traded stocks on the Hang Seng
Tech Index are Tencent, Xiaomi, and SenseTime.
"Nip Chun Pong: HSI is expected to move within the range of 18,200 to 18,600"
The HSI opened higher by 31 points this morning but briefly dipped by several dozen
points before quickly turning upward again. However, it encountered resistance near
18,606, narrowing its gains and entering a sideways pattern for the fourth consecutive
trading day. Nip Chun Pong, the Chief Strategist at Blackwell Global Asset Management,
told ET Net News Agency that despite the HSI's previous ten-day consecutive rise, it has
recently shown a narrow fluctuation pattern. The bottom of the range is expected to find
support around 18,200, which was the bottom of the gap that occurred on 3 May. The upper
range is around 18,600. If it breaks above this range, referring to the chart of the HSI's
movement on 4 September of the previous year, resistance is expected around 18,900.
With the resumption of A-shares trading this Monday (6th), even with the influence of
southbound funds, the trading volume of Hong Kong stocks has not increased. Yesterday's
trading volume even decreased to around HKD 110 billion, significantly lower than the
approximately HKD 150 billion trading volume on 26 and 29 April. This indicates a
weakening momentum in the rise of Hong Kong stocks, and it is expected that the HSI will
maintain a sideways pattern in the short term. Once a significant correction occurs,
stronger support is expected around 17,800.
"HSBC's ex-dividend day is tomorrow, stock price may experience a pullback"
HSBC (00005) broke the HKD 70 mark today, reaching a high of HKD 70.7, the highest in 16
years. Nip Chun Pong stated that HSBC continues its share buyback programme (according to
HSBC's announced buyback agreement, the group has authorized Morgan Stanley to repurchase
no more than USD 3 billion of ordinary shares from 8 May to 26 July) and has also
distributed a special dividend. This has attracted some investors to enter the market, and
the recent surge in the stock price is understandable. However, after the ex-dividend date
tomorrow (9th), a pullback cannot be ruled out. As HKD 70 is a psychological level, it
depends on the remaining days of this week whether the stock price can stabilize at that
level. If it manages to hold steady at HKD 70 this week, coupled with HSBC's buyback
programme, it may see further upside potential, aiming for HKD 75.
ET Net News Agency Limited
website:www.etnet.com.hk
email:cs@etnet.com.hk
Data Source：ETN
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