20180608-东亚证券-Weekly_Report_4页_214kb

Summary of Hong Kong Stocks and Market Analysis (Week Ended 8th June 2018)

Core Content

This weekly report provides an overview of the performance of Hong Kong stocks for the week ended 8th June 2018, including the Hang Seng Index (HSI), sectoral indices, and key indices such as the HSCEI and HSCCI. It also includes a summary of US and regional market updates, major changes in index constituent stocks, and upcoming important announcements and events.

Main Market Performance

• Hong Kong Stocks: Hong Kong stocks continued their upward trend for a sixth consecutive session, with the HSI reaching its highest level in three weeks. However, investors trimmed their gains on Friday, with the HSI closing at 30,958.21 (+1.5%) and the HSCEI at 12,165.79 (+1.2%) compared to the previous week.
• Turnover: The average daily turnover on the Mainboard dropped to HK$102.5 billion from HK$121.2 billion in the prior week, reflecting reduced trading activity.
• Sectoral Performance:
  • Finance: Up 1.5% (HK$42,343 vs. HK$41,713)
  • Utilities: Up 0.5% (HK$55,737 vs. HK$55,486)
  • Properties: Strongest performer, up 3.3% (HK$42,313 vs. HK$40,969)
  • Communication & Industry: Up 1.2% (HK$18,693 vs. HK$18,481)
  • Growth Enterprise Index: Up 0.7% (HK$254 vs. HK$252)

Key Drivers of Market Performance

• Global Risk Appetite Recovery: The global market showed signs of recovery, with the Nasdaq Composite Index hitting a record high, driven by strong performance of US tech giants such as Apple, Amazon, Microsoft, Facebook, and Netflix.
• Sino-US Trade Friction: The US government lifted sanctions against ZTE after the company agreed to pay US$1 billion and replace its management team, temporarily easing trade tensions.
• Property Sector Boost: Strong May sales data from HK-listed developers and the PBOC's broadening of collateral acceptance in its medium-term lending facility supported property stocks, with China Overseas Land (#00688) and Country Garden (#02007) leading the gains.

US & Regional Markets Weekly Update

• Dow Jones: Rose by +606.20 (+2.5%) to 25,241.41
• NASDAQ: Increased by +80.74 (+1.1%) to 7,635.07
• Nikkei 225: Up +523.15 (+2.4%) to 22,694.50
• STI (Singapore): Up +8.86 (+0.3%) to 3,436.37
• KLSE Index (Malaysia): Up +21.94 (+1.2%) to 1,778.32
• SET Index (Thailand): Up +5.84 (+0.3%) to 1,725.66
• Taipei Weighted Index: Up +207.34 (+1.9%) to 11,156.42

Major Changes in Index Constituent Stocks

• AAC Tech (02018): Closed at HK$127.1, up +HK$10.9 (+9.4%) due to strong performance of Apple-related firms.
• Sunny Optical (02382): Closed at HK$168.3, up +HK$10.3 (+6.5%) for similar reasons.
• PICC Group (01339): Closed at HK$4.0, up +HK$0.29 (+7.8%) after the Chinese securities regulator approved its Shanghai IPO.
• China Resources Land (01109): Closed at HK$28.8, up +HK$2.55 (+9.7%) due to strong sales data and PBOC policy adjustments.
• China Overseas Land (00688): Closed at HK$31.1, up +HK$1.6 (+5.4%) for similar reasons.

Upcoming Important Announcements / Events

• 11th June 2018 (Monday):
  • HK: Next Digital Ltd. (00282) and L’Occitane International (00973) release final results.
• 12th June 2018 (Tuesday):
  • HK: Skyworth Digital (00751) releases final results.
  • US: Consumer Price Index (CPI) released.
• 13th June 2018 (Wednesday):
  • HK: Yixin Group (02858) releases 1Q results.
  • US: Producer Price Index (PPI) for May 2018 and FOMC Meeting Announcement.
• 14th June 2018 (Thursday):
  • HK: No major announcements.
  • US: Initial jobless claims for the week ended 9th June 2018 and Retail Sales for May 2018.
• 15th June 2018 (Friday):
  • HK: Huifu Payment Limited (01806) debuts on the market.
  • US: Industrial Production for May 2018.

Summary of US Economic News

• US Trade Deficit (April 2018): Fell to a seven-month low of US$46.2 billion as exports hit a record high.
• Initial Jobless Claims (Week ended 2nd June 2018): Declined by 1,000 to 222,000, indicating a strong labor market and low unemployment.

Key Takeaways

• The Hong Kong market benefited from a global recovery in risk appetite and eased Sino-US trade tensions.
• The property sector was a standout performer, driven by strong sales data and monetary policy adjustments.
• Investors are closely watching the upcoming US-China summit and the Fed meeting, though the latter is expected to be less impactful.
• The FIFA World Cup in Russia may affect market sentiment due to diverted attention and capital flow to gambling.

Disclaimer

This report is prepared by East Asia Securities Company Limited, a subsidiary of The Bank of East Asia, Limited. It is for informational purposes only and does not constitute investment advice. The views expressed are subject to change and should not be relied upon for making investment decisions. East Asia Securities and BEA may have interests in the securities mentioned.