Daily Investment Strategy
Hang Seng Index fell 301 points on Wednesday
The Hang Seng Index fell 301 points or 1.4% to 20,812 on Wednesday. HSTECH fell 41 points or 1.0% to 4,288 and HSCEI fell 92 points or 1.3% to 7,018. Daily market turnover was HK$112.3bn.
U.S. stocks end slightly higher as investors weigh implications for retail sales and inflation data
Strong U.S. retail sales in January added to market concerns about the Fed’s continued interest rate hikes. U.S. two-year Treasury yields hit a three-month high. U.S. stocks were volatile on Wednesday. The Dow Jones Industrial Average rose 38.78 points, or 0.11%, to close at 34,128.05, rebounding more than 250 points from its session low. The S&P 500 rose 0.28% to 4,147.60. The Nasdaq Composite rose 0.92% to 12,070.59, boosted by shares of Airbnb, which rose 13.35% after beating earnings estimates. Apple and Alphabet were among the biggest gainers in tech stocks, while in semiconductors, investors factored in a drop in TSM and a surge in Analog Devices. Berkshire Hathaway reduced its 86% stake in TSM, causing TSM's stock price to drop more than 5%. Shares of Analog Devices rose 7 percent to a new 52-week high after the company reported quarterly earnings that topped Wall Street expectations for both revenue and profit. Roblox pre-orders surged as the video game company reported better-than-expected fourth-quarter results, with earnings surging 26%. Airbnb, meanwhile, issued upbeat guidance as healthy travel demand underpinned bookings, topping revenue and net profit expectations for its quarterly results.
U.S. retail sales jump 3% in January
U.S. retail sales unexpectedly rose 3% month-on-month in January, the largest increase since March 2021, well above market expectations of 1.8%. That followed a 1.1 percent drop in December. Food services and alcohol grew 7.2 percent, the most of any major industry. Auto and parts dealers rose 5.9 percent, and furniture and home furnishings stores rose 4.4 percent.
Hong Kong Stock Connect had a net inflow of HK$3.91bn on Wednesday, of which Tracker Fund (2800) had the largest net inflow, reaching HK$3.2bn; followed by HSCEI ETF (2828). Tencent (700) recorded the largest net outflow at HK$0.48bn, followed by ICBC (1398).
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.
