The three major indices of Hong Kong stocks continued the recent pullback, showing a weak and volatile trend throughout the day. Among them, the Hengke Index showed the weakest performance. At one point, it fell more than 3% intraday.
The Zhitong Finance App learned that the three major indices of Hong Kong stocks continued the recent correction and showed a weak and volatile trend throughout the day. Among them, the Hengke Index showed the weakest performance. At one point, it fell more than 3% intraday. At the close, the Hang Seng Index fell 1.42% or 240.77 points to 16720.89 points. This week's cumulative increase was 2.25%, with a full-day turnover of HK$139.086 billion; the Hang Seng State-owned Enterprises Index fell 1.46% to 5820.50 points; and the Hang Seng Technology Index fell 1.5% to 3549.84 points.
Cinda International pointed out a few days ago that the Fed's conversion of pigeons is beneficial to risky assets, but the last mile of fighting inflation is expected to be repeated, and the game between the market and the Federal Reserve over interest rate cuts and downsizing will increase market fluctuations. Hong Kong stocks await the introduction of strong stimulus policies in the Mainland to enhance economic momentum and speed up the return of capital to the Chinese and Hong Kong stock markets. The Hang Seng Index will initially test 17,500 points.
Blue chip stock performance
Yao Ming Kang De (02359) continued its decline. At the close, it fell 8.79% to HK$41, with a turnover of HK$1.04 billion, dragging down the Hang Seng Index by 2.24 points. According to the latest news, on March 14, US time, BIO revised and updated the content of a press release it issued on the 13th: “BIO is currently taking measures to remove Pharmacom Kangde's membership in the organization” before the revision has been revised to “Pharmaceutical Kangde voluntarily terminates its BIO membership.”
In terms of other blue-chip stocks, Zijin Mining (02899) rose 2.59% to HK$15.86, contributing 3.42 points to the Hang Seng Index; Xinao Energy (02688) rose 2.53% to HK$64.9, contributing 1.97 points to the Hang Seng Index; Master Kong Holdings (00322) fell 4.16% to HK$8.99, dragging down the Hang Seng Index by 1.2 points; Haier Smart Home (06690) fell 3.67% to HK$23.65, dragging down the Hang Seng Index by 3.42 points.
In terms of popular sectors
On the market, the weakness of most large technology stocks dragged down the market; the US “draft biosafety law” continued to ferment, CRO concept stocks led the market, and individual pharmaceutical stocks fell sharply again; home appliance stocks, film and television stocks, gaming stocks, domestic housing stocks, automobile stocks, coal stocks, and large financial stocks declined one after another. On the other side, supply concerns boosted copper prices, and copper stocks bucked the trend; multi-factor resonance drove gold prices, and gold stocks bottomed out and rebounded.
1. Copper stocks rallied in the afternoon. At the close, Minmetals Resources (01208) rose 4.38% to HK$3.1; China Nonferrous Mining (01258) rose 3.98% to HK$6.8; WGE Mining (03939) rose 2.99% to HK$6.54; and Jiangxi Copper (00358) rose 1.95% to HK$13.58.
According to reports, in order to cope with the shortage of raw materials, China's major smelters have reached an agreement to cut production at some of the loss-making plants. Affected by news of production cuts, copper prices rose to 8,950 US dollars/ton on the night of March 14, a new high since May 2023. CITIC Securities believes that if production cuts are implemented on the smelting side in the future, the balance between global refined copper supply and demand is expected to shift from a slight excess to a shortage early during the year. Against the backdrop of a tight balance that is difficult to break and maintain, the bank believes that the copper price center is expected to move upward. China Post Securities pointed out that looking ahead to 2024, the copper supply and demand pattern is better than 2023. Combined with the Fed's interest rate cut cycle, copper prices have solid support.
2. Gold stocks bottomed out and rebounded. At the close, Lingbao Gold (03330) rose 13.31% to HK$2.81; China Gold International (02099) rose 5.18% to HK$47.7; Zijin Mining (02899) rose 2.59% to HK$15.86; and Shandong Gold (01787) rose 0.79% to HK$15.38.
The strengthening of the US dollar and rising US Treasury yields reduced the appeal of gold. International gold prices fell on Thursday, and COMEX April gold futures closed down 0.61% to 2167.5 US dollars/ounce. Xingzheng Futures recently pointed out that short-term gold prices may fluctuate repeatedly at high levels. However, in the medium to long term, in the context of the Federal Reserve's interest rate cut cycle, there is still some room for decline in US bond yields and real interest rates. Combined with the instability of the international political and economic environment, there is a high probability that gold prices will fluctuate too much. Furthermore, J.P. Morgan Chase claims that gold is the bank's first choice in the commodity market, and believes that the price of gold may rise to 2,500 US dollars this year.
3. CRO concept stocks had the highest decline, while Pharmacovigilance collectively declined. At the close, Pharmaceuticals (02359) fell 8.79% to HK$41; Tiger Pharmaceuticals (03347) fell 6.24% to HK$31.55; Zhaoyan Pharmaceutical (06127) fell 4.56% to HK$10.04; in addition, Pharmaceuticals (02268) fell 3.58% to HK$15.62.
According to the latest news, on March 14, US time, BIO revised and updated the content of a press release it issued on the 13th: “BIO is currently taking measures to remove Pharmacom Kangde's membership in the organization” before the revision has been revised to “Pharmaceutical Kangde voluntarily terminates its BIO membership.” Some industry insiders pointed out that 2024 is the year of the US election, and the “Here Comes the Wolf” story will be repeated over and over again. Currently, Yao Ming Kangde mainly uses overseas orders. If this part of the order is divested, it will definitely affect its performance and valuation, and there is great uncertainty about whether domestic orders can support the current volume of Pharmaceutical Ming Kangde.
4. Domestic housing stocks generally fell today. At the close, Yuexiu Properties (00123) fell 4.84% to HK$4.92; Vanke Enterprise (02202) fell 4.71% to HK$5.87; Metro Development (01030) fell 2.73% to HK$1.07; and Sunac China (01918) fell 2.42% to HK$1.21;
According to data from the National Bureau of Statistics, in February, due to factors that had a relatively high base for the same period last year, the year-on-year decline in sales prices of newly built commercial homes and second-hand homes in all tier cities increased. The sales price of newly built commercial residential homes in first-tier cities fell 1.0% year on year, an increase of 0.5 percentage points over the previous month. Motong Daikan pointed out a few days ago that the central government's efforts to avoid default on debts with some leading developers were not enough to dispel the bank's biggest concern about weak domestic housing sales. The monthly improvement in domestic housing sales in March may be due to seasonal factors. Until the bank sees a recovery in domestic housing sales and stabilization of housing prices, it will maintain a cautious view on domestic housing stocks.
5. Bitcoin concept stocks are lower. At the close, Meitu (01357) fell 5.12% to HK$3.15; Xiongan Technology (01647) fell 3.57% to HK$0.081; and Oke Cloud Chain (01499) fell 1.72% to HK$0.285.
Bitcoin fell sharply today. It once fell below 67,000 US dollars/coin during the intraday period, and hit a historical peak of nearly 7,3798 US dollars a day ago. J.P. Morgan Chase indicated in a research report at the end of February that after the April halving incident, the price of Bitcoin could drop to 42,000 US dollars. Furthermore, Bank of America's chief investment strategist Michael Hartnett said that the market is showing the characteristics of a bubble amid a record surge in tech “Big Seven” stocks and a new high school in cryptocurrency history. The remarks sparked a debate on Wall Street about whether many markets are vulnerable to pullbacks.
Popular volatile stocks
1. Premium Choice (09880) showed strong performance. At the close, it rose 14.67% to HK$222.
CITIC Securities pointed out that the humanoid robot industry has transitioned from Tesla Optimus singing a one-man show to a stage of full bloom. The progress of leading domestic robotics companies such as Figure, 1X, and Preferred Choice this year is also expected to become an important catalyst for the industry.
2. Commonwealth Pharmaceuticals (03933) hit a new high. At the close, it rose 9.56% to HK$9.28.
Federal Pharmaceuticals announced that it expects the group to make a profit of approximately RMB 26 in 2023 and approximately RMB 1,581 billion in 2022. According to the announcement, the increase in profit was mainly due to the steady increase in the turnover of the Group's various business segments during the year.
3. Tourover-W (09690) was higher after the results. At the close, it rose 5.47% to HK$11.96.
Tourover announced its 2023 results, with revenue of approximately RMB 13.601 billion (same unit), up 17.8% year on year; gross profit of about RMB 3.359 billion, up 48% year on year; adjusted net profit of about RMB 481 million, turning a loss into a profit for the first time.