Market Insight
2024.08.30 12:52
{Market Preview}Meituan faces resistance at HKD 122
[ET Net News Agency, 30 August 2024] Various U.S. economic data strengthened and this
downplayed concerns about recession. U.S. stocks rose overall. The Hang Seng Index opened
at 18,100 points in the morning session, up 313 points or 1.8%, returning to the 18,000
level since 25 July. It reached an intraday high of 18,153 points, and the main board
turnover exceeded HKD 67.5 billion. The Hang Seng China Enterprises Index was at 6,364, up
117 points or 1.9%. The Hang Seng Tech Index was at 3,566, up 105 points or 3.1%.
"Jaseper Tsang: The Hang Seng Index is expected to be blocked again at 18,300, and it will
take time for the 100-day line support to be established"
The trading volume of Hong Kong stocks at the settlement day finally returned to the 100
billion level. The Hang Seng Index further opened above the 100-day line this morning.
Riding on the high sentiment of Chinese financial stocks after the first interim dividend
was distributed, it returned to 18,000 for the first time since mid-July.
Jaseper Tsang, the investment director of Rafter Capital, told ET Net News Agency that
Hong Kong stocks have gradually rebounded recently. After yesterday's settlement day, the
new one-month spot index futures has already risen above the important 18,000 mark in
advance, driving the Hang Seng Index to break through the 100-day resistance and hit
18,000 today. However, he believes that even if the Hang Seng Index currently shows signs
of a technical turnaround, the fundamentals of Hong Kong stocks have not improved and it
will be difficult to support the market outlook.
Jaseper Tsang mentioned that Hong Kong stocks have been affected by the economic
situation in the Mainland China. The Mainland China economy has not yet gotten rid of the
housing market dilemma, and Hong Kong stocks have always been difficult one step at a
time. He expects that the Hang Seng Index will be blocked again at the July high of
18,300. If there is a pullback in the other markets, the Hang Seng Index will follow the
trend and fall back. Whether the 100-day moving average below can become a support or not,
this will be determined if can hold steady for at least a week.
"Meituan's strategy is in line with national conditions, but it is difficult to break
through the resistance of HKD 122 in the short term"
Meituan (03690) recently announced results that surprised the market. The adjusted net
profit for the second quarter surged 77.6% to RMB 13.606 billion, beating expectations of
RMB 10.611 billion. After the performance, Meituan became a lifeline for the market.
During the selling period of the Hang Seng Index yesterday, Meituan's stock price
gradually climbed during the day, rising by more than 12% throughout the day. It
contributed more than 120 points to the Hang Seng Index, driving the Hang Seng Index from
falling to rising. Meituan's rise continued this morning, rising by more than 3% in half a
day, hitting the important mark of HKD 120 before falling slightly.
Jaseper Tsang analysed that Meituan's performance this time allowed the market to see
Meituan's execution ability. It improved profits through restructuring its business
strategy and successfully executed it. It successfully built a moat to resist external
competition and drove its performance to resume growth. He mentioned that Meituan's
strategies such as "Pinhaofan" and other strategies have successfully grasped the changes
in national conditions and expanded its own profits in response to the news of sinking,
which has made the market once again optimistic about Meituan's growth ability in the
future, and is expected to attract more medium and long-term funds in the future.
However, Jaseper Tsang is not optimistic about the short-term trend of Meituan, because
Meituan is a heavyweight stock. On the premise that the Hong Kong stock market is not
optimistic, Meituan may be blocked again at the top of the range from June to July at
about HKD 122.
ET Net News Agency Limited
website:www.etnet.com.hk
email:cs@etnet.com.hk
Data Source：ETN
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