Jinwu Financial News | The Hang Seng Index closed at 16792 on Friday (15th), up 390 points or 2.38%. The market traded 136.259 billion yuan throughout the day. The national index closed at 5700, up 126 points or 2.3%; the scientific index rose 2.2% to close at 3,780 points. Blue chips rose 0.6%; Hong Kong Stock Exchange (00005) rose 4.4%; China Stock Exchange (00388) rose 4.4%; CCB (00939) rose 1.3%; AIA (01299) rose 3.9%; Ping Pao (02318) rose 2.7%; Oriental Overseas (00316) surged 9.4% as the best performing blue chip; only 8 blue chips recorded a decline, with Shunyu (02382) falling 2%, the worst performing Hang Seng Index constituent stock.
The Dow closed at 37,305 points on Friday (15th), up 56 points, or 0.15%. The index fell slightly by 0.01% to 4719 points; the NASDAQ, which is dominated by technology stocks, rose 0.35% to 14,813 points; and the Nasdaq 100 rose 0.52% to close at 16,623 points, breaking the historic high of 16,573 points set in November 2021. The Golden Dragon Index, which reflects the performance of Chinese concept stocks, rebounded 0.34%. Among major stocks, Amazon and Meta rebounded 1.6% and 0.5% respectively. Retailer Costco announced a special dividend to stimulate a 4.5% increase in stock prices. Boeing entered 3.1%. As the strongest performing Dow constituent stocks, Intel and Microsoft jumped 2.2% and 1.3% respectively. The Asia Pacific stock market moved individually this morning (18th). The Nikkei 225 Index is currently at 3,2612 points, down 358 points, or 1.09%. The South Korean Composite Index is currently reported at 2,556 points, up 12 points, or 0.48%. The Federal Reserve lowered the policy interest rate, and Hong Kong stocks moved above the 10-day line.
Market Focus: HK Electric - SS (02638)
The US Federal Reserve announced that it will stop raising interest rates. Public stocks are investment instruments that are the opposite of interest rate trends. They are beginning to be favored by the market, and public stock prices are starting to strengthen. HK Electric (2638) announced that it will invest 22 billion yuan in capital expenditure over the next 5 years to replace units, strengthen carbon reduction efforts, and strengthen the power grid to ensure stable and reliable electricity supply and enhance the ability of the power system to cope with extreme weather. Although net electricity costs for Liangdian will decrease next year, basic electricity costs will still rise. In addition, Liangdian has been approved by the government for a new five-year development plan (2024-2028), so it is predicted that basic electricity costs will rise year by year from 2025 to 2028. The Hong Kong government has introduced a series of measures and border reopening. It can be seen that consumer, retail, and tourism-related spending is on the rise, and Hong Kong's economy is slowly recovering. Benefiting from continued growth in consumer spending and corporate investment, the Group is also bound to benefit from this.
The target price is $5, and the stop-loss price is $4.3.
(The author is a licensed person of the Securities Regulatory Commission and the author does not hold the above shares)
Author: Dr. Deng Shengxing, Managing Partner, Yibo Capital Asia Limited