Hong Kong/China Market

Transcription

1 Hong Kong/China Market Technical Strategy The HSI bounced back after hitting the point support Indices Latest Chg. Pts HSI 28, HSI Future 28, DJIA 25, S&P 500 2, NASDAQ 7, H-share 11, Red-chip 4, Shanghai Comp 2,904-2 Shenzhen Comp 1,625-1 While retaking the 10-day MA improves its trading outlook, the index is now challenging the point resistance. Hong Kong Market Review 4-day winning streak. While trade fears ebbed together with the mainland fiscal policies turning more expansionary, the HSI extended gains by opening 244 points higher. Despite once narrowing gains to around 100 points, rising momentum picked up quickly and the HSI closed 258 points higher to But turnover slipped again to only HKD86.3bn. Healthcare shares bounced back in contrast to their A shares peers. Local investors appears to be less sensitive to the fake vaccine incident. CSPC Pharma (1093.HK) edged up 1.8% to HKD21.65/share and 3S Bios (1530.HK) jumped 2% to HKD17.54/share. Sino Biopharm (1177.HK) rebounded 2.2% to HKD11.26/share. Oil shares advanced on crude prices rebound. PetroChina (0857.HK) and CNOOC (0883.HK) put on 2.5% and 3.5% to HKD5.76/share and HKD12.88/share. Sinopec (0386.HK) also leaped 2.1% to HKD7.36/share after issuing a positive profit alert with 50% yoy earnings growth.

2 Economic News Trump says he hopes to strike trade deal with Europe. U.S. President Donald Trump said on Wednesday he hopes to work out a fair and reciprocal trade deal between the United States and Europe as he welcomed the head of the European Commission to the White House for talks. We just want it to be a level playing field for our farmers, for our manufacturers, for everybody, Trump told reporters at the White House. And we also want a big beneficiary, frankly, to be the European Union. The United States and EU are locked in a trade dispute stemming from Trump s decision to impose steep tariffs on U.S. imports of steel and aluminum. Trump has also said he is considering tariffs on imports of automobiles, an action the EU hopes to head off. (Reuters) Trump eases car tariff threat as U.S., EU launch talks to quell trade tensions. In what the EU chief called a major concession, U.S. President Donald Trump agreed on Wednesday to refrain from imposing car tariffs while the two sides launch negotiations to cut other trade barriers, easing the threat of a transatlantic trade war. After a meeting at the White House, Trump and European Commission President Jean-Claude Juncker said the talks would also seek to resolve U.S. tariffs on steel and aluminum and Europe s retaliatory duties - marking a step back from Trump s signature import protections for American metals producers. Europe has agreed to increase purchases of U.S. liquefied natural gas and lower trade barriers to American soybeans, aiding U.S. farmers and the energy sector, Trump said. (Reuters)

3 Market News Wall St. rises as Trump touts EU trade concessions. Wall Street rose on Wednesday as U.S. President Donald Trump secured concessions from the European Union on trade, while a disappointing quarterly report from Facebook (FB.O) after the bell slammed its stock and threatened to put the brakes on a tech rally. The benchmark S&P 500 jumped more than half a percent in the last halfhour of trading on news of the concessions and closed at its highest level since Jan. 29. Trump said that the United States and the European Union had agreed to work toward eliminating tariffs on industrial goods and increasing U.S. exports of liquefied natural gas and soybeans to Europe. (Reuters) Asian stocks inch up after Trump, Juncker pledge cuts to trade barriers. Asian stocks edged higher on Thursday, taking comfort from gains on Wall Street after U.S. President Donald Trump and European Commission President Jean-Claude Juncker agreed to work toward eliminating trade barriers on industrial goods. In a news conference following a meeting between the two leaders on Wednesday, Trump said he and Juncker had agreed to work to lower industrial tariffs on both sides and to increase European imports of liquefied natural gas and soybeans from the United States, among other measures. (Reuters) Oil rises after Saudi Arabia suspends shipments through Red Sea lane following attack. Brent crude led oil prices higher, extending gains into a third day after Saudi Arabia suspended crude shipments through a strategic Red Sea shipping lane and as data showed U.S. inventories fell to a 3-1/2 year low. Brent crude futures had risen 66 cents, or 0.9 percent, to $74.59 a barrel by 0019 GMT, after gaining 0.7 percent on Wednesday. U.S. West Texas Intermediate crude futures were up 22 cents at $69.52 a barrel, after climbing more than 1 percent in the previous session. (Reuters) Dollar sags, euro buoyant after U.S., EU move toward averting trade war. The dollar sagged on Thursday and the euro advanced, as the United States and the European Union agreed to begin talks to lower tariffs, easing immediate concerns about worsening global trade tensions. (Reuters)

4 Company Announcements CITIC Dameng (01091) 1H profit rises 23% to $85.88M. Net profit: HK$85.884M, up 22.67% YoYBasic EPS: HK$0.0251Dividend per share proposed: (Nil). (Infocast News) Sun Hung Kai Co (00086): 1H profit rises substantially. Sun Hung Kai & Co. (00086) expects its consolidated profit attributable to the owners of the company for the first half of 2018 to increase substantially on year as a result of improved performance. (Infocast News) Emperor Watch & J (00887): 1H profit rises 300%. Emperor Watch & Jewellery (00887) expects its net profit for the six months ended 30 June 2018 to increase by 300% on year mainly due to encouraging sales performance and solid gross profit margin amid the upswing of consumption sentiment, coupled with an enhanced operating efficiency. (Infocast News) Road King Infra (01098) 1H sales RMB18.695B. Road King Infrastructure (01098) said the sales of the group for the six months ended 30 June 2018 was about RMB billion, comprising property sales of RMB billion and toll revenue of expressway projects of RMB1.470 billion. (Infocast News)

5 Today s Sector Focus Banks in Guangzhou have reportedly lowered mortgage rates recently. The change in lending policies could favour the housing demand. Investors are concerned if banks in other areas would follow suit. Mainland property developers extended rebound yesterday. COLI (0688.HK) Bounced back forcefully above the 10-day MA. The increase in trade turnover is a positive signal. China Res Land (1109.HK) Spiked and retook all major MAs. The long white candles in recent sessions indicate strong trading momentum.

6 Country Garden (2007.HK) Climbing back up the 250- day MA is a positive signal. The next resistance stands at HKD14.57/share, or the 100-day MA. Hang Seng Composite Sectors Sector Index Day (%) Week (%) MTD (%) YTD (%) Hang Seng Index (HSI) 28, Hang Seng Composite 3, HSCI Utilities 8, HSCI Industrial Goods 1, HSCI Materials 6, HSCI Conglomerates 2, HSCI Telecommunication 1, HSCI Property & Construction 4, HSCI Info Technology 12, HSCI Consumer Goods 5, HSCI Financials 4, HSCI Services 4, HSCI Energy 9, HS Mainland 100 8, HS China Enterprises 11, HS China H-Financial 16, HS China Affiliated Corps 4, HS HK 35 3, HS HK Large Cap 2, HS HK MidCap 4, HS HK Small Cap 2, Source: Bloomberg

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