KGI Asia Commentary
Hang Seng Index fell 307 points on Friday
The Hang Seng Index opened 136 points lower on Friday, at 18,199 points, and fell 307 points, or 1.7%, to 18,028 points for the day; the China National Index fell 116 points, or 1.8%, to 6,440 points; the Hang Seng Technology Index fell 66 points, or 1.7%, to 18,028 points; the Hang Seng Technology Index fell 66 points, or 1.7%, to 6,440 points; 3,701 points. The total daily turnover of the market was HK$129 billion. SenseTime (20) raised nearly HK$2 billion through a share placement at a discount of 9.1%. It opened lower but later rose 3% to HK$1.36. Heavyweight technology stocks came under pressure, with Meituan (3690), Alibaba (9988) and Tencent (700) falling between 1.6 and 3.1%.
Last Friday was the day of Quadruple witching for U.S. stocks
U.S. stocks closed mixed on Friday. The Dow Jones index rose 15.57 points, or 0.04%, to 39150.33 points; the Nasdaq index fell 32.23 points, or 0.18%, to 17689.36 points; the S&P 500 index fell 8.55 points, The decrease was 0.16%, reported at 5464.62 points. The Dow rose 1.47% last week, recording its largest weekly gain since May. The Nasdaq rose 0.5 points from last Friday's close. The S&P 500 rose 0.66%, marking its third consecutive weekly gain.
Last Friday was the settlement day for option futures on U.S. stock indexes and individual stocks, and the market called it the " Quadruple Witching Day", the performance of U.S. stocks last Friday was relatively volatile. In terms of economic data, the United States released second-hand home sales data last Friday, and S&P Global released the service and manufacturing PMI index. Firstly, second-hand home sales in the United States fell for the third consecutive month in May. At the same time, housing prices hit a new high. Second-hand home sales fell 0.7% month-on-month to an annualized rate of 4.11 million units, in line with market expectations.
U.S. service and manufacturing sectors remain resilient
Last Friday, the United States announced the S&P Global Service Industry and Manufacturing PMI Index. The service and manufacturing PMI in June were 55.1 and 51.7 respectively, which were both better than the market expectations of 53.4 and 51. Both results did not fall as expected by the market, but instead, both expanded, reflecting that U.S. economic activity remains resilient. It is worth noting that the report mentioned that price pressures have further weakened, this gives a positive signal to the Fed for future rate movement.
The net inflow of Hong Kong Stock Connect on Friday was HK$4.58 billion, of which China Construction Bank (939) had the largest inflow, reaching HK$670 million; followed by China Mobile (941). Yankuang Energy (1171) recorded the largest net outflow of HK$94 million; followed by United Energy (467).
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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