{ETN News 14th} New York Fed President Williams reiterated his expectation of two rate hikes this year, chip stocks were sold off; coupled with mixed performance from major banks, US stocks closed lower across the board overnight. Affected by external factors, HSI opened 62 points lower today, but rebounded from its low to close at the day's high of 24,524 after stable inflation data from mainland China was released. However, in the afternoon, reduced northbound inflow dragged HSI back into negative territory, ending the session with northbound funds turning net outflow of HK$414.7 million. The Hang Seng Index closed at 24,314, down 31 points or 0.1%, with main board turnover of nearly HK$193.5 billion. The Hang Seng China Enterprises Index closed at 8,183, up 8 points or 0.1%. The Hang Seng Tech Index closed at 4,174, up 37 points or 0.9%.
Since late August, HSI has been consistently capped by its 20-day moving average (currently around 24,471), and today it reversed downward again upon touching that level. Given the current lack of positive catalysts both in Hong Kong and externally, it is expected that HSI will find it difficult to break through resistance in the short term. Nevertheless, although today's market turnover remained below HK$200 billion, it marked the second consecutive day of recovery; while inflation data from mainland China fell short of expectations, it was still within the market's acceptable range. Coupled with HSI stabilizing above the 24,000 level for several consecutive trading days, HSI is expected to consolidate in the near term, but with significant resistance above, upside potential is extremely limited. Investors should also pay attention to the latest CPI data to be released in the US, as a significant rise in inflation could impact global stock markets.
*Tech and internet stocks rally sharply, biotech stocks restrained by multiple negatives*
Tech and internet stocks performed well: Meituan (03690) rose 6.6% to HK$77.10, the best-performing blue chip of the day; Alibaba (09988) gained 3.1% to HK$110.50; Xiaomi (01810), popular due to Apple's (US.AAPL) entry into the smart home market and its creation of a closed-loop 'person-car-home' ecosystem, rose 5.4% to HK$26.38; AI short drama concept heated up, Kuaishou (01024) rose 1.2% to HK$29.52; Tencent (00700) completed offshore bond issuance raising a total of US$5.7 billion, with two tranches priced above 6%, but its share price softened, down 0.4% to HK$423.40.
Akeso (09926) initiated a placement, falling 9.6% to lead declines in the biotech index at HK$94.90. Additionally, BioNTech's cancer mRNA therapy trial failed to meet clinical endpoints, dragging down the entire biotech sector: Innovent Biologics (01801) fell 4.2% to HK$88.10; China Biopharmaceutical (01177) dropped 3.5% to HK$5.165; BeiGene (06160) declined 2.3% to HK$209.40; CSPC Pharmaceutical Group (01093) fell 2.8% to HK$8.81.
Mainland and Hong Kong banks weakened: CCB (00939) fell 1.1% to HK$9.855; ABC (01288) dropped 2.2% to HK$6.57; ICBC (01398) declined 0.9% to HK$7.57; BOC (03988) fell 1% to HK$6.20; Standard Chartered (02888) dropped 3.5% to HK$221.80; BOCHK (02388) fell 2.6% to HK$50.90.
*MINISO breaks above 50-day MA, boosting market sentiment*
MINISO (09896) has been trending down since last September, but recently rebounded on the back of its third-quarter gross merchandise value (GMV) data, which showed a year-on-year increase of 25% to 30%, mainly driven by high single-digit same-store sales growth. During the National Day holiday from October 1 to 7 in mainland China, it recorded a year-on-year GMV growth of 20% to 25%, benefiting from a low base effect. MINISO rose 5.8% today to HK$20.50, marking seven consecutive days of gains with a cumulative rise of 18.8%.
With MINISO's sales showing signs of recovery and its share price now at the same level as its post-listing lows in mid-2022 (revisited on September 24, 2024), the current price is relatively attractive. At the end of September, the company's management indicated they may continue to buy shares after previous增持. Supported by multiple factors, the stock has potential for further short-term rebound.
Technically, during its downtrend, MINISO's share price generally remained below the 50-day moving average (around HK$19.70), but today it broke above this level again after a two-month gap, signaling a potential short-term reversal. Given the significant cumulative gain in recent days, investors might consider waiting for a pullback to around the 10-day MA (approximately HK$18.30) to cautiously position for a rebound, with an initial target at around HK$22, above the gap level seen at the end of August. (am)
Since late August, HSI has been consistently capped by its 20-day moving average (currently around 24,471), and today it reversed downward again upon touching that level. Given the current lack of positive catalysts both in Hong Kong and externally, it is expected that HSI will find it difficult to break through resistance in the short term. Nevertheless, although today's market turnover remained below HK$200 billion, it marked the second consecutive day of recovery; while inflation data from mainland China fell short of expectations, it was still within the market's acceptable range. Coupled with HSI stabilizing above the 24,000 level for several consecutive trading days, HSI is expected to consolidate in the near term, but with significant resistance above, upside potential is extremely limited. Investors should also pay attention to the latest CPI data to be released in the US, as a significant rise in inflation could impact global stock markets.
*Tech and internet stocks rally sharply, biotech stocks restrained by multiple negatives*
Tech and internet stocks performed well: Meituan (03690) rose 6.6% to HK$77.10, the best-performing blue chip of the day; Alibaba (09988) gained 3.1% to HK$110.50; Xiaomi (01810), popular due to Apple's (US.AAPL) entry into the smart home market and its creation of a closed-loop 'person-car-home' ecosystem, rose 5.4% to HK$26.38; AI short drama concept heated up, Kuaishou (01024) rose 1.2% to HK$29.52; Tencent (00700) completed offshore bond issuance raising a total of US$5.7 billion, with two tranches priced above 6%, but its share price softened, down 0.4% to HK$423.40.
Akeso (09926) initiated a placement, falling 9.6% to lead declines in the biotech index at HK$94.90. Additionally, BioNTech's cancer mRNA therapy trial failed to meet clinical endpoints, dragging down the entire biotech sector: Innovent Biologics (01801) fell 4.2% to HK$88.10; China Biopharmaceutical (01177) dropped 3.5% to HK$5.165; BeiGene (06160) declined 2.3% to HK$209.40; CSPC Pharmaceutical Group (01093) fell 2.8% to HK$8.81.
Mainland and Hong Kong banks weakened: CCB (00939) fell 1.1% to HK$9.855; ABC (01288) dropped 2.2% to HK$6.57; ICBC (01398) declined 0.9% to HK$7.57; BOC (03988) fell 1% to HK$6.20; Standard Chartered (02888) dropped 3.5% to HK$221.80; BOCHK (02388) fell 2.6% to HK$50.90.
*MINISO breaks above 50-day MA, boosting market sentiment*
MINISO (09896) has been trending down since last September, but recently rebounded on the back of its third-quarter gross merchandise value (GMV) data, which showed a year-on-year increase of 25% to 30%, mainly driven by high single-digit same-store sales growth. During the National Day holiday from October 1 to 7 in mainland China, it recorded a year-on-year GMV growth of 20% to 25%, benefiting from a low base effect. MINISO rose 5.8% today to HK$20.50, marking seven consecutive days of gains with a cumulative rise of 18.8%.
With MINISO's sales showing signs of recovery and its share price now at the same level as its post-listing lows in mid-2022 (revisited on September 24, 2024), the current price is relatively attractive. At the end of September, the company's management indicated they may continue to buy shares after previous增持. Supported by multiple factors, the stock has potential for further short-term rebound.
Technically, during its downtrend, MINISO's share price generally remained below the 50-day moving average (around HK$19.70), but today it broke above this level again after a two-month gap, signaling a potential short-term reversal. Given the significant cumulative gain in recent days, investors might consider waiting for a pullback to around the 10-day MA (approximately HK$18.30) to cautiously position for a rebound, with an initial target at around HK$22, above the gap level seen at the end of August. (am)
