Daily Investment Strategy
HSI rose 2 points on Thursday
The Hang Seng Index rose 2 points or 0.0% to 19,248 on Thursday. HSTECH rose 4 points or 0.1% to 4,378 and HSCEI rose 15 points or 0.2% to 6,628. Daily market turnover was HK$81.0bn.
Disney leads Dow higher despite rising yields
The Dow edged higher on Thursday, buoyed by gains in shares of Disney after earnings and favorable inflation data. The Dow rose 52.79 points, or 0.15%, to close at 35176.15. The S&P 500 edged up 0.03% to 4,468.83. The Nasdaq Composite rose 0.12% to close at 13737.99. Meanwhile, Disney rose 4.9%, making it the top performer on the Dow after announcing it would soon raise the price of an ad-free Disney+ subscription. Later Wednesday, the media giant also reported better-than-expected earnings per share for its latest fiscal quarter. Shares of Wynn Resorts rose 2.6% after reporting better-than-expected earnings. Shares of Alibaba Group Holdings rose more than 4% after it reported quarterly earnings that significantly beat analysts' expectations. The Chinese tech giant said it will implement plans to split the company into six businesses starting in the quarter ended June 30. As of Thursday morning, more than 90 percent of S&P 500 companies had reported earnings for the quarter. About four-fifths of those beat Wall Street expectations, according to FactSet.
July CPI rose 3.2%, less than expected
July's consumer price index rose 3.2 percent year-on-year, below economists' forecast of 3.3 percent. On a monthly basis, inflation rose 0.2%, in line with expectations. The core CPI, which strips out volatile food and energy prices, also rose 0.2 percent in the month and rose 4.7 percent year-on-year. Almost all of the monthly inflation increase came from housing costs, which rose 0.4% month-on-month and 7.7% year-on-year. More than 90% of the gains came from this category, which accounts for about one-third of the CPI's weight, the BLS said.
Hong Kong Stock Connect had a net inflow of HK$1.7bn on Thursday, of which AIA (1299) had the largest net inflow, reaching HK$0.33bn; followed by Tencent (700). China Telecom (728) recorded the largest net outflow at HK$0.28bn, followed by X Peng (9868).
Wen Kit Kenny is a SFC licensed person accredited to KGI Group to carry on regulated activities (for details, please refer to:https://apps.sfc.hk/publicregWeb/indi/AJF244/details). He and/or his associate do not have any financial interest in the recommended issuer or new listing applicant.
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