KGI Asia: Hang Seng Index's target price for the next 6 months raised to 20,900 points

KGI Asia released the global market outlook for the second half of 2024, expecting the Hang Seng Index to be raised to 20,900 points in the next 6 months. The forecasted P/E ratio is 10.22 times, still lower than the average P/E ratio of the past decade, indicating strong upward momentum in the market. It is predicted that inflation data in the second quarter of this year will trend downwards again, and the labor market will continue to slow down. Market expectations suggest that interest rate cuts may begin in the fourth quarter of this year, with a possibility of 1 to 2 rate cuts throughout the year. Capital markets are expected to experience fluctuations in the second half of the year, with a slightly more favorable trend towards the end of the year. KGI Asia recommends paying attention to five major themes and 11 focus stocks