Daily Investment Strategy
Hang Seng Index fell 54 points on Wednesday
The Hang Seng Index fell 54 points or 0.3% to 16,081 on Wednesday. HSTECH fell 53 points or 1.6% to 3,190 and HSCEI fell 52 points or 1.0% to 5,421. Daily market turnover was HK$103.6bn.
The S&P 500 closed near 5,000, hitting a record high, as corporate profits continued to be strong
The S&P 500 index rose on Wednesday, approaching the 5,000-point mark and setting a new closing high, as investors read corporate earnings reports that pointed to economic prosperity. The S&P 500 index rose 0.82% to close at 4995.06 points. The S&P 500 hit a session high of 4,999.89. The Nasdaq rose 0.95% to close at 15,756.64 points, and the Dow Jones Industrial Average rose 156 points, or 0.4%, to close at 38,677.36 points, a record high. Ford Motor Co shares rose 6%, boosting consumer stocks after the company reported annual guidance and fourth-quarter results that beat analysts' expectations. Uber Technologies posted its first annual net operating profit, thanks in part to strong demand for its ride-sharing and food delivery services during the holidays, and shares ended slightly higher. Snap's stock price plummeted 34% after the social media giant reported quarterly revenue of $1.36 billion, missing estimates of $1.38 billion. New York Community Bancorp shares fell 1% even as the regional bank sought to calm concerns about its financial strength, saying it had a strong enough liquidity base to cover bank deposits without U.S. government guarantees. JPMorgan Chase & Co. and BofA Securities downgraded the stock.
Alibaba's revenue grew 5% yoy last quarter, slightly lower than expected
Alibaba announced its third quarter results for fiscal year 2024. Revenue was RMB260.348bn, increase 5% yoy, slightly lower than Bloomberg's forecast of RMB 261.247bn. Adjusted EBITA increased by 2% yoy to RMB52.843bn. Non-GAAP net profit was RMB47.951bn, a decrease of 4%. The group also announced that the board of directors has approved an increase in the share repurchase plan by US$25 billion, which will be valid until the end of March 2027. After adjustment, there will still be US$35.3 billion under its share repurchase program in the next three fiscal years. The group said it expects to have further update in early April.
Hong Kong Stock Connect had a net outflow of HK$2.35bn on Wednesday of which China Mobile (941) had the largest net inflow, reaching HK$0.27bn; followed by China Shenhua (1088). Tencent (700) recorded the largest net outflow at HK$0.46bn, followed by SMIC (981).
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.
The materials contained herein are provided by KGI Asia Limited ("KGI") for information only. While such materials are based on or derived from sources believed to be reliable, KGI makes no representation or warranty (express or implied) as to their accuracy or reliability. Neither the information nor the opinions expressed herein constitute, or are to be construed as, an offer or invitation or solicitation of an offer to buy or sell any securities or investments. KGI and its officers, employees, agents and affiliates may have interests in the securities or investments covered herein and accept no liability whatsoever for any loss or consequence whatsoever (whether direct or indirect) resulting from any use of or reliance by you on such materials.
