{Market Preview}CM Bank relies on positive economic data

  The Hang Seng Index reported a slight decline of 12 points or less than 0.1%, reaching 16,461 in the morning session. The main board recorded a trading volume of over HKD 50.5 billion. The Hang Seng China Enterprises Index increased by 9 points or 0.2% to reach 5,764. The Hang Seng Tech Index reported a slight decline of 3 points or 0.1% at 3,433.
  The three most traded stocks on the HSI were Tencent (00700), AIA (01299), and Meituan (03690). Tencent closed at HKD 292.2, up HKD 3.6 or 1.2%, with a trading volume of HKD 2.964 billion. AIA closed at HKD 53.5, down HKD 1.3 or 2.4%, with a trading volume of HKD 2.469 billion. Meituan closed at HKD 92.4, down HKD 0.9 or 1%, with a trading volume of HKD 1.54 billion. The three most traded stocks on the Hang Seng China Enterprises Index were Tencent, Meituan, and Alibaba (09988). Alibaba closed at HKD 69.6, down HKD 0.7 or 1%, with a trading volume of HKD 1.447 billion. The three most traded stocks on the Hang Seng Tech Index were Tencent, Meituan, and Alibaba.

"Wan Kong Shing: Hong Kong stock market lacks direction in the short term, with too many earnings reports causing capital diversion"

  As the earnings season in the Hong Kong stock market comes to an end, the HSI continues to fluctuate around its 100-day moving average, but the overall trading volume has gradually decreased. Wan Kong Shing, the Vice President of iFAST Global Markets, told ET Net News Agency that this week, with only four trading days before the holiday, and a strong focus on economic data from China and the United States, the Hong Kong stock market clearly lacks direction. He pointed out that even though several large-cap stocks announced their earnings during the week, the simultaneous release of earnings reports from dozens of companies has caused the market's attention to be divided, making it difficult to generate significant capital rotation.
  He expects that based on the remaining time and market trends, the HSI will find it challenging to surpass 17,000 this month, but it is unlikely to fall below 16,000. Looking ahead to April, he believes that the upcoming economic data for Mainland China in March is expected to show continued improvement. After the end of the first quarter, investors generally prefer to reallocate their funds, and he anticipates the HSI to aim for 17,500 next month, with strong support around the 16,000 level. The expected trading range for April is between 16,000 and 17,500.

"CM Bank is in a short-term consolidation phase"

  CM Bank (03968) announced a yearly increase of 6.2% in net profit to RMB 146.6 billion, with a year-on-year increase of 13% in its final dividend of RMB 1.972 per share. The overall performance and increased dividend payout drove the stock price up by nearly 5% in the first half of the day. Wan Kong Shing mentioned that CM Bank's performance met expectations, but today it failed to break above the consolidation range that has been in place since the end of February. He expects the stock to remain in the HKD 29 to 32 range in the short term. For investors, he suggests deploying capital below HKD 30 and setting a stop loss at HKD 27.5. The breakthrough of this range will depend on more favourable economic data.
  Wan Kong Shing added that investors should pay attention to the PMI for March in Mainland China. Overall, it is expected that more funds will flow into the market after the Chinese New Year holiday, which will contribute to positive economic data.