KGI Asia Commentary
HSI rose 343 points on Monday
The Hang Seng Index rebounded 110 points in mid-day after opening 64 points lower. The HSI closed at 20,782, up 343 points or 1.7%. The HSTECH closed at 4,254, up 89 points or 2.2%. The HSCEI rose 141 points, or 2.1%, to 7,056. Market turnover was HK$136.6bn. The opening of the Shanghai Auto Show is coming soon, and auto sector performed well yesterday. EV stocks XPEV (9868) and NIO (9866) rose 12.5% and 6.4% respectively. Mainland airline stocks performed well, with Air China (0753) and China Southern Airlines (1055) rising 4.8% and 3.9% respectively.
U.S. April NAHB housing market index high expectations
The market is waiting for the next round of 1Q23 earnings announcement in banking sector. The economic figure released yesterday was only the NAHB housing index. the NAHB housing market index in April was 45, higher than 44 of market consensus and the previous month. The index rebounded from the low point in December last year, reflecting the peak of interest rate hikes was the positive factor of US property market.
The three major US stock indexes all fell first and then recovered. The S&P 500 rose 13 points or 0.33% to 4,151; the DJIA rose 100 points or 0.3% to close at 33,987; the Nasdaq composite rose 34 points or 0.28% to 12,157.
Visitor numbers in Macau hit record high last Saturday
Tourism figures in Macau continue to improve. Over the past Saturday (15th), more than 98,000 tourists visited Macau, which was the highest level in 2023. The current number of tourists has recovered to 58% of the pre-epidemic level in 2019. Although the number of tourists recorded high since covid-19, we expect that the gambling revenue, especially the contribution of VIP rooms, may not recover at the same speed. Investors can pay attention to companies with the proportion of the entertainment segment.
Hong Kong Stock Connect had a net inflow of HK$7.43bn on Monday, among which Tracker Fund (2800) had the largest net inflow of HK$3.12bn, followed by Hang Seng China Enterprises (2828). Tencent (0700) recorded the largest net outflow of HK$720mn; followed by China Construction Bank (0939).
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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