KGI Asia Commentary

2024.07.03 09:47

Hang Seng Index rose 50 points on Tuesday

The Hang Seng Index rose 50 points or 0.3% to 17,769 on Tuesday. HSTECH fell 15 points or 0.4% to 3,539 and HSCEI rose 43 points or 0.6% to 6,374. Daily market turnover was HK$118.4bn.

S&P 500 closes above 5,500 for first time

On Tuesday, the S&P 500 index closed above 5,500 for the first time ever, supported by a surge in Tesla shares and optimism about a rate cut after Federal Reserve Chairman Jerome Powell welcomed recent inflation progress. The S&P 500 rose 0.7% to close at 5,510.65 points, setting its 32nd closing record this year. The Dow Jones Industrial Average rose 147 points, or 0.4%; the Nasdaq Index rose 0.7%, closing at 18,029.18 points, a record high. Tesla shares rose 10% after the electric car maker said it delivered 443,956 electric vehicles in the second quarter, beating estimates of 438,019 units. According to the New York Times, billionaire Barry Diller is considering acquiring Paramount, and the company's stock price rose nearly 8%.

Powell says Fed has made ‘quite a bit of progress’ on inflation

Powell expressed satisfaction with the progress on inflation but said he would like to see more progress before he is confident enough to begin cutting interest rates. “We want to be more confident that inflation is moving sustainably down toward 2% before we start the process of reducing or loosening policy,” he said at a central banking forum in Sintra, Portugal. The remarks come just a day ahead of the minutes of the Fed’s June meeting, with nonfarm payrolls on Friday. Meanwhile, the May JOLTs showed that there were 8.14 million job openings, up from 7.92 million in April and higher than the expected 7.95 million.

Hong Kong Stock Connect had a net inflow of HK5.95bn on Tuesday, of which CCB (939) had the largest net inflow, reaching HK$1.71bn; followed by ICBC (1398). Tencent (700) recorded the largest net outflow at HK$0.46bn, followed by Brilliance China (1114).

Recommended Stocks

Capture the moment and trade with KGI Asia's insights

Stocks

Recommended

Stocks

Recommended

Longyuan
00916

As of 31 March 2024, the consolidated installed capacity of the Group was 36,155.83 MW, among which, the consolidated installed capacity of the wind power, coal power and other renewable energy power were 27,780.64 MW, 1,875.00 MW and 6,500.19 MW, respectively. In 2023, the Group increased its resource reserve by 54 GW (24.65 GW for wind power), all of which are located in regions with better resources. Recently, the Company has received a notice from CHN Energy, the controlling shareholder, that CHN Energy intends to initiate the injection of certain new energy assets into the Company. The equity interests in new energy companies within certain provincial-level subsidiaries of the CHN Energy that meet the injection conditions, with an estimated installed capacity of new energy of approximately 4,000,000 kW, are initially planned to be injected in batches. The market expects the asset injection to be completed in January 2025. Earlier, President Xi held a symposium with enterprises, experts and scholars, and mentioned deepening the reform of the electric power system, which reflects the high-level attention attached to the reform. The market generally expects that the Third Plenary Session in July this year will bring more details to the reform of the electric power system. Investors can pay more attention to new energy concepts, including Longyuan. Target price: $8.6; Stop- Loss price: $6.8.

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.