[ET Net News Agency, 02 July 2025] After the market reopened following the 1 July holiday, Hong Kong stocks traded in a volatile and directionless manner, though certain sectors received a boost from positive news. At midday, the HSI was at 24,220, up 148 points or 0.6 percent, with main board turnover exceeding HKD 135.2 billion. The Hang Seng China Enterprises Index was at 8,730, up 52 points or 0.6 percent. The Hang Seng Tech Index was at 5,288, down 14 points or 0.3 percent.
"Nip Chun Pong: weaker HKD dampens blue chips, HSI is expected to trade between 23,800 and 24,500"
After three consecutive days of declines, Hong Kong stocks rebounded this morning. The HSI opened more than 200 points higher and was up as much as 300 points in early trading. However, the index quickly retreated from its highs, with gains narrowing to just 50 points at one stage. Nip Chun Pong, the Chief Strategist at Blackwell Global Securities, told ET Net News Agency that although the Hong Kong market has corrected for three days, the range was not large, just about 400 points. The HSI is still holding above 24,000, remaining at a high level. Looking back at the market highs in March, there were only six trading days where the HSI closed above 24,000, and the current level is comparable to the highs of early 2022. At present, funds are favouring stock picking over broad-based index investing, and blue chips are less attractive to capital compared to new consumer stocks. The previously announced "New Energy Vehicle Consumption Season" across thousands of counties and towns on the Mainland China has also provided only limited support to the overall market. In addition, the Hong Kong dollar has weakened recently, with the HKMA's latest intervention involving HKD 20 billion in purchases, suggesting signs of capital outflow. This has somewhat capped the HSI's upside.
Nonetheless, with overall sentiment in global financial markets still positive, Nip Chun Pong believes the downside for the HSI is limited. If the index falls to 23,800, filling the gap from 23 and 24 June, there should be some support. Resistance is seen at the June high of around 24,500. In other words, the HSI is expected to fluctuate in the 23,800-24,500 range in the short term.
"Macao gaming revenue surges 19 percent, Melco Int'l Dev outperforms"
The Macao Gaming Inspection and Coordination Bureau announced that gaming revenue in June was MOP 21.064 billion, up 19 percent year-on-year and down 0.6 percent month-on-month, beating market expectations of MOP 19.75 billion. In the first six months of this year, gaming revenue totalled MOP 118.771 billion, up 4.4 percent year-on-year. Driven by the strong data, several gaming stocks performed well, with Galaxy Ent (00027) up as much as 9 percent, and Sands China (01928) up as much as 8 percent. Melco Int'l Dev (00200) outshone its peers, surging as much as 25 percent to a one-year high in morning trading. Nip Chun Pong noted that Macao's June gaming revenue was a positive surprise, especially as June is traditionally a low season for gaming. However, Macao's government-driven event economy, with concerts attracting visitors and boosting spending, drove up gaming revenue. Nip expects that with more concerts scheduled in July and the summer peak season underway, Macao's gaming revenue should continue to rise, attracting further investment.
As for Melco Int'l Dev's standout share price performance, Nip pointed out that the company's rights issue in mid-June was oversubscribed by 13 times, a much stronger response than expected, explaining its recent strong performance. He compared the situation to Laopu Gold (06181), which surged after its lock-up period ended as previously cautious funds entered the market, pushing the share price higher. Nip expects Melco Int'l Dev still has upside potential, but as the shares have rallied too sharply today, it would be safer to wait for a pullback below HKD 4.50 to buy, with a target price of HKD 5.20-5.30. In addition, MGM China (02282) has shown significant growth in revenue and profit in recent years and its fundamentals are sound. The stock is currently trading at about 11 times earnings, and if the price pulls back to the HKD 13.00-13.50 range, it would also be worth considering. Nip expects the share price could surpass last year's post-adjustment high of HKD 14.60 in the coming months.
"Nip Chun Pong: weaker HKD dampens blue chips, HSI is expected to trade between 23,800 and 24,500"
After three consecutive days of declines, Hong Kong stocks rebounded this morning. The HSI opened more than 200 points higher and was up as much as 300 points in early trading. However, the index quickly retreated from its highs, with gains narrowing to just 50 points at one stage. Nip Chun Pong, the Chief Strategist at Blackwell Global Securities, told ET Net News Agency that although the Hong Kong market has corrected for three days, the range was not large, just about 400 points. The HSI is still holding above 24,000, remaining at a high level. Looking back at the market highs in March, there were only six trading days where the HSI closed above 24,000, and the current level is comparable to the highs of early 2022. At present, funds are favouring stock picking over broad-based index investing, and blue chips are less attractive to capital compared to new consumer stocks. The previously announced "New Energy Vehicle Consumption Season" across thousands of counties and towns on the Mainland China has also provided only limited support to the overall market. In addition, the Hong Kong dollar has weakened recently, with the HKMA's latest intervention involving HKD 20 billion in purchases, suggesting signs of capital outflow. This has somewhat capped the HSI's upside.
Nonetheless, with overall sentiment in global financial markets still positive, Nip Chun Pong believes the downside for the HSI is limited. If the index falls to 23,800, filling the gap from 23 and 24 June, there should be some support. Resistance is seen at the June high of around 24,500. In other words, the HSI is expected to fluctuate in the 23,800-24,500 range in the short term.
"Macao gaming revenue surges 19 percent, Melco Int'l Dev outperforms"
The Macao Gaming Inspection and Coordination Bureau announced that gaming revenue in June was MOP 21.064 billion, up 19 percent year-on-year and down 0.6 percent month-on-month, beating market expectations of MOP 19.75 billion. In the first six months of this year, gaming revenue totalled MOP 118.771 billion, up 4.4 percent year-on-year. Driven by the strong data, several gaming stocks performed well, with Galaxy Ent (00027) up as much as 9 percent, and Sands China (01928) up as much as 8 percent. Melco Int'l Dev (00200) outshone its peers, surging as much as 25 percent to a one-year high in morning trading. Nip Chun Pong noted that Macao's June gaming revenue was a positive surprise, especially as June is traditionally a low season for gaming. However, Macao's government-driven event economy, with concerts attracting visitors and boosting spending, drove up gaming revenue. Nip expects that with more concerts scheduled in July and the summer peak season underway, Macao's gaming revenue should continue to rise, attracting further investment.
As for Melco Int'l Dev's standout share price performance, Nip pointed out that the company's rights issue in mid-June was oversubscribed by 13 times, a much stronger response than expected, explaining its recent strong performance. He compared the situation to Laopu Gold (06181), which surged after its lock-up period ended as previously cautious funds entered the market, pushing the share price higher. Nip expects Melco Int'l Dev still has upside potential, but as the shares have rallied too sharply today, it would be safer to wait for a pullback below HKD 4.50 to buy, with a target price of HKD 5.20-5.30. In addition, MGM China (02282) has shown significant growth in revenue and profit in recent years and its fundamentals are sound. The stock is currently trading at about 11 times earnings, and if the price pulls back to the HKD 13.00-13.50 range, it would also be worth considering. Nip expects the share price could surpass last year's post-adjustment high of HKD 14.60 in the coming months.