KGI Asia Commentary
Hang Seng Index fell 190 points on Tuesday
The Hang Seng Index opened 204 points lower at 18,163 points. It fell below 18,000 points during the day and fell 190 points or 1% to 18,176 points. The HSCEI Index fell 58 points, or 0.9%, to 6,452 points; the Hang Seng Technology Index fell 17 points, or 0.4%, to 3,755 points. The total daily turnover of the market was HK$139.8 billion. Shipping stocks were weak yesterday, with Orient Overseas International (316) and COSCO Shipping Holdings (1919) falling 9.4% and 12.9% respectively. Gold and aluminum stocks are on a correction, with China Hongqiao (1378) and Zijin Mining (2899) falling 6.7% and 4.9% respectively.
Apple shares price soar
U.S. stocks closed mixed on Tuesday. The Dow Jones index fell 120.62 points, or 0.31%, to 38747.42 points; the Nasdaq index rose 151.02 points, or 0.88%, to 17343.55 points; the S&P 500 index rose 14.53 points, or 0.27% and reported at 5375.32 points.
For individual stock, Apple's (AAPL) stock price soared by more than 7%, reaching a new high. Analysts said that the artificial intelligence functions released by Apple's WWDC will help drive Iphone upgrade momentum for the customer and become a catalyst for revenue growth. Reference to past experience, Apple may launch a new smartphone in September, and the replacement boom in the market is worth paying attention to.
Market awaits CPI and FOMC discussion
Tonight, the United States will first announce the CPI inflation data for May, followed by the results of the latest FOMC discussion. The global market is currently waiting for the release of the above two results. The market currently expects CPI to rise 3.4% year-on-year and 0.1% month-on-month; core CPI is expected to rise 3.5% year-on-year and 0.3% month-on-month. In terms of the path of interest rate cuts, the market continues to expect that interest rates will remain unchanged at this meeting, and expects the first interest rate cut to occur in September, but the probability is only 48.3%.
The net inflow of Hong Kong Stock Connect on Tuesday was HK$10.28 billion. Among them, Tracker Fund (2800) had the largest inflow, reaching HK$1.61 billion; followed by China National Offshore Oil Corporation (883). COSCO Shipping Holdings (1919) recorded the largest net outflow of HK$130 million, followed by Xiaomi (1810).
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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