Hong Kong/China Market

Transcription

1 Hong Kong/China Market Technical Strategy The H-Financial Index bounced back upon touching a key support near the 100-day MA Indices Latest Chg. Pts HSI 29, HSI Future 29, DJIA 24, S&P 500 2,663-1 NASDAQ 6, H-share 11, Red-chip 4, Shanghai Comp 3, Shenzhen Comp 1, The index attempts to stand above the 10-day MA support at points. Hong Kong Market Review Soars towards market close. The HSI opened 62 points higher following a rally in the DJIA on Tuesday. The benchmark index was once up by more than 150 points in the morning session and ended up 79 points higher half day. Buying interest intensified after lunch break and buying orders concentrated on bank shares and gaming shares. The local bourse closed the day up 428 points, or 1.49%, to points. Turnover volume stood at HKD106bn. Bank shares advance. Investors believed the Federal Reserve would raise interest rates on Thursday and continued to chase international bank shares. Meanwhile, market strategists are recommending investors to unload tech shares and add oldeconomy-shares. HSBC Holdings (005.HK) rose 2.04% to HKD79.95/share. STANCHART (2888.HK) gained 0.75% to HKD80.7/share. Aviation shares gained, and market pundits attributed their good performance to the 2%+ decline in crude prices on Tuesday. CSA (1055.HK) rose 2.78% to HKD7.37/share and CEA (670.HK) put on 3.23% to HKD4.79/share. Air China (753.HK) soared 8.18% to HKD8.72/share, while Cathay Pacific (293.HK) grew 2.24% to HKD11.84/share. VC Brokerage Limited. All rights reserved. Opinions, projections and other information contained in this

2 Economic News Fed raises interest rates, keeps 2018 policy outlook unchanged. The Federal Reserve raised interest rates on Wednesday but left its rate outlook for the coming years unchanged even as policymakers projected a short-term jump in U.S. economic growth from the Trump administration s proposed tax cuts. In an early verdict on the tax overhaul, Fed policymakers judged it would boost the economy next year but leave no lasting impact, with the long-run potential growth rate stalled at 1.8 percent. The White House has frequently said its tax plan would produce annual GDP growth of 3 percent to 4 percent. (Reuters) Flat U.S. yield curve not signaling recession risk: Yellen. For all those market mavens out there fretting about the relentless flattening of the U.S. Treasury yield curve, Federal Reserve Chair Janet Yellen has a message for you: Get over it. U.S. outgoing Federal Reserve Chair Janet Yellen holds a news conference after a two-day Federal Open Market Committee (FOMC) meeting in Washington, U.S. December 13,. In response to her final question at her final press conference on Wednesday, after nearly four years at the helm of the U.S. central bank, Yellen effectively dismissed the current shape of the U.S. yield curve as little more than a technical anomaly. (Reuters) Republicans forge tax deal, final votes seen next week. Congressional Republicans reached a deal on final tax legislation on Wednesday, clearing the way for final votes next week on a package that would slash the U.S. corporate tax rate to 21 percent and cut taxes for wealthy Americans. (Reuters) Oil slips as U.S. gasoline stock build overshadows crude draw. Oil prices slipped for a second straight day on Wednesday, as a slump in U.S. crude stockpiles was offset by a larger-than-forecast rise in gasoline inventories and as U.S. crude output continued to grow to record highs. (Reuters) Dollar nurses losses after post-fed selloff. The dollar nursed its losses in early Asian trade on Thursday, having tumbled after the Federal Reserve raised interest rates in a widely expected move, but left its rate outlook for the coming years unchanged. (Reuters) VC Brokerage Limited. All rights reserved. Opinions, projections and other information contained in this

3 Market News Asia stocks edge higher after Fed meeting; dollar, U.S. yields sag. Asian stocks edged higher on Thursday after the Federal Reserve delivered a much-anticipated interest rate hike but flagged caution about inflation, tempering expectations for future tightening, which weighed on the dollar and Treasury yields. As widely expected, the Fed raised rates for the third time this year on Wednesday while sticking to its projection for three rate increases next year. But the policy tightening was accompanied by concerns about low inflation, toning down expectations for policy tightening in The Fed projected inflation to remain shy of its goal for another year, giving policymakers little reason to accelerate the expected pace of rate increases. (Reuters) European shares slip; Italian stocks fall on political uncertainty. Political jitters hit Italian stocks on Wednesday and the broader European market slipped lower before a Federal Reserve meeting that could provide more clues on future interest rate moves in the United States next year. Italy s parliament will be dissolved between Christmas and the New Year with national elections probably set for March 4, a parliamentary source said on Wednesday. The pan- European STOXX 600 benchmark fell 0.2 percent, euro zone blue chips dropped 0.5 percent and UK s FTSE slipped less than 0.1 percent. (Reuters) U.S. crude stockpiles fall for fourth week on huge Cushing draw: EIA. U.S. crude oil stockpiles fell for a fourth straight week with the biggest slump in supplies at the Cushing, Oklahoma, hub in eight years, even as crude output hit another weekly record, the Energy Information Administration said on Wednesday. Gasoline inventories, meanwhile, soared far more than expected, even as refining rates slipped. Crude inventories fell 5.1 million barrels in the week to Dec. 8, compared with analysts expectations for an decrease of 3.8 million barrels. At 443 million barrels, stocks were the lowest since October Crude stocks at the Cushing, Oklahoma, delivery hub for U.S. crude futures fell 3.3 million barrels, EIA said, the largest one-week draw since September (Reuters) OPEC sees balanced oil market by late 2018 as cuts erode glut. OPEC expects the world oil market to be balanced by late 2018 as its deal with other producers to cut output reduces excess oil in storage, even as the U.S. and other producers outside the group pump more crude. The Organization of the Petroleum Exporting Countries, in a monthly report, cut its estimate of global demand for its crude in 2018 by 270,000 barrels per day (bpd) to million bpd, in part because of higher U.S. supply. But the 14-country producer group said its oil output in November, as assessed by secondary sources, was below the 2018 demand forecast at million bpd, a drop of about 133,000 bpd from October. (Reuters) VC Brokerage Limited. All rights reserved. Opinions, projections and other information contained in this

4 Company Announcements China South Air's (01055) Nov passenger traffic up 15.37%. China Southern Airlines Company (01055) announced that in November, its passenger capacity increased by 11.13% on year. The passenger capacity for domestic, regional and international routes increased by 9.70%, 12.09% and 14.74% respectively. The group's passenger traffic increased by 15.37% on year. The passenger traffic for domestic, regional and international routes increased by 14.59%, 22.14% and 17.08% respectively. (Infocast News) China Lit (00772) eligible for short selling from Dec 20. The Stock Exchange announced that with effect from 20 December, China Literature (00772) will be admitted to the list of designated securities eligible for short selling. (Infocast News) China Taiping's (00966) Jan-Nov premium income up 23.75%. China Taiping Insurance (00966) announced that for the eleven months through November, the premium incomes of its three subsidiaries, Taiping Life Insurance (TPL), Taiping General Insurance (TPI) and Taiping Pension (TPP), were RMB billion, RMB billion and RMB4.356 billion respectively, or RMB billion in total, up 23.75% on year. (Infocast News) Gold-Fin Hldg (01462) buys Jiangsu ppt at RMB18M. Gold- Finance Holdings (01462) announced that on 13 December, Xuyi Baoming (an indirectly owned and controlled subsidiary of Gold- Finance Holdings) entered into a contract to buy the land use rights of a land parcel in Xuyi County, Huai'an City, Jiangsu Province and seven commercial buildings erected on the land from Huaian City Xuyi City Asset Management at a consideration of RMB18 million. The 9,173-square-metre land is designated for commercial and residential use with the term for commercial use expiring on 24 March 2051 and the term for residential use expiring on 24 March The properties on the land have a gross floor area of approximately 4,913 square metres. (Infocast News) China Green (00904) expects significant drop in 1H loss. China Green (Holdings) (00904) expects a significant decrease in loss attributable to owners of the company for the six months ended 31 October compared to the loss attributable to owners of the company of RMB million for the corresponding period in (Infocast News) VC Brokerage Limited. All rights reserved. Opinions, projections and other information contained in this

5 Today s Sector Focus Market analysts are still bullish about Macau s gross gaming revenue (GGR) growth for Dec17 and expect it to come in exceeding 20% yoy based on tracking statistics during the first 10 days of the month. Gaming shares were spurred yesterday as a result. Galaxy Ent (0027.HK) Surged through HKD60/share on strong turnover volume. Trading above all major MAs is a bullish sign. Sands China (1928.HK) The formation of roundbottom pattern is a positive sign. HKD42/share is a major resistance. VC Brokerage Limited. All rights reserved. Opinions, projections and other information contained in this

6 MGM China (2282.HK) Breached a psychological resistance at HKD24/share yesterday. But MGM China is now overbought. Hang Seng Composite Sectors Sector Index Day (%) Week (%) MTD (%) YTD (%) Hang Seng Index (HSI) 29, Hang Seng Composite 4, HSCI Utilities 7, HSCI Industrial Goods 1, HSCI Materials 6, HSCI Conglomerates 2, HSCI Telecommunication 1, HSCI Property & Construction 4, HSCI Info Technology 13, HSCI Consumer Goods 5, HSCI Financials 4, HSCI Services 4, HSCI Energy 8, HS Mainland 100 8, HS China Enterprises 11, HS China H-Financial 18, HS China Affiliated Corps 4, HS HK 35 3, HS HK Large Cap 2, HS HK MidCap 5, HS HK Small Cap 2, Source: Bloomberg VC Brokerage Limited. All rights reserved. Opinions, projections and other information contained in this

7 - Analyst Certification Each research analyst primarily responsible for the content of this research report, in whole or in part, certifies that with respect to each security or issuer that the analyst covered in this report: (1) all of the views expressed accurately reflect his or her personal views about those securities or issuers; and (2) no part of his or her compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed by that research analyst in the research report. Disclaimer This document is prepared by VC Brokerage Limited ( VC ) to provide information about the securities mentioned herein. It is for distribution only under such circumstances as may be permitted by applicable law. It has no regard to the specific investment objectives, financial situation or particular needs of any specific recipient. It is published for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. No representation or warranty, either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein, nor is it intended to be a complete statement or summary of the securities, markets or developments referred to in this document. It should not be regarded by the recipients as a substitute for the exercise of their own judgment. Any prices or levels contained in these pages are indicative and may vary in accordance with changes in market conditions. Investors are warned that the price of any securities may fall in value as rapidly as it may rise and holders may sustain a total loss of their investment. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document, and no claims, actions or legal proceedings may be brought against VC in connection with this document in any manner whatsoever by any person dealing with the securities and/or the related financial instruments mentioned herein. Any opinions expressed in this document are subject to change without notice. VC is under no obligation to update or keep current the information contained herein. VC and its affiliates, their directors, officers and employees or clients may have or have had interests or long or short positions in the securities or other financial instruments referred to herein, and may at any time make purchases and/or sales in them as principal or agent. VC and its affiliates may have or have had a relationship with or may provide or has provided investment banking, capital markets and/or other financial services to the relevant companies. Employees of VC and its affiliates may serve or have served as officers or directors of the relevant companies. VC Brokerage Limited. All rights reserved. Opinions, projections and other information contained in this report are based upon sources believed to be accurate, but no responsibility is accepted for any loss occasioned by reliance placed upon the contents herein. Further information on the companies mentioned in this report is available