Daily Investment Strategy
HSI rose 766 points on Tuesday
The Hang Seng Index rose 766 points or 4.1% to 19,434 on Tuesday. HSTECH rose 242 points or 6.0% to 4,257 and HSCEI rose 333 points or 5.3% to 6,604. Daily market turnover was HK$142.1bn.
Dow closes higher for 12th straight day, longest winning streak since February 2017
The Dow extended its gains on Tuesday, with tech stocks dominating a key week ahead of the sector's earnings and the Federal Reserve's interest rate decision on Wednesday. The Dow rose 26.83 points, or 0.08%, to 35,438.07. It was the index's 12th straight session of gains and its longest run since February 2017. The S&P 500 rose 0.28% to 4,567.46. The Nasdaq Composite rose 0.61% to 14,144.56. GM shares fell 3.5 percent despite raising its full-year profit forecast. Meanwhile, GE shares rose nearly 6.3 percent after second-quarter revenue beat expectations. UPS fell 1.9 percent after the company reached a preliminary agreement with the Teamsters union that avoided a strike. Chip stocks also propelled the tech sector higher, with major auto chip supplier NXP Semiconductors reporting an upbeat outlook and quarterly results that topped Wall Street expectations. Meanwhile, shares of Banc of California surged 11% and shares of PacWest Bancorp fell 27%. The Wall Street Journal quoted people familiar with the matter as saying that Bank of California is in advanced talks to acquire PacWest. Wall Street is digesting its busiest earnings yet, with major tech companies Alphabet and Microsoft reporting after the close. Nearly 130 S&P 500 companies have reported second-quarter results so far. Of those companies, about 79% beat analysts' estimates, according to FactSet.
Market eyeing on the result of FOMC meeting
Investors are also awaiting the Federal Reserve's policy decision on Wednesday and will analyze comments from Fed Chairman Jerome Powell on the economic outlook. Investors are overwhelmingly betting the Fed will raise rates by 0.25 percentage points. However, they were less certain about what policymakers would do in September.
Hong Kong Stock Connect had a net inflow of HK$6.1bn on Tuesday, of which Tencent (700) had the largest net inflow, reaching HK$1.2bn; followed by Kuaishou (1024). Tracker Fund (2800) recorded the largest net outflow at HK$4.1bn, followed by HSCEI ETF (2828).
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.
