[True Insight Institutional View] US stocks fluctuated, Hang Seng Index 'seven consecutive gains'

The three major U.S. stock indices showed significant fluctuations, with the Dow Jones Industrial Average closing up 55 points after repeated fluctuations, while the S&P 500 index fell slightly by 9 points, and the Nasdaq Composite Index dropped by 0.7%. The Golden Dragon Index, which reflects the performance of Chinese concept stocks, stabilized and rose by 0.35%.

As for the Chinese and Hong Kong stock markets, the Shanghai and Shenzhen stock markets showed mixed performance yesterday. The Shanghai Composite Index fluctuated throughout the day but still closed up 0.16% at 4,157 points, while the Shenzhen Component Index was relatively weak, ultimately falling 0.3% to close at 14,300 points. Trading remained active, with total turnover reaching 3.23 trillion yuan.

Hong Kong stocks continued to perform well. The Hang Seng Index opened nearly 200 points lower following the external markets but quickly narrowed its losses and turned positive. In the afternoon, the gains further expanded, and the Hang Seng Index broke through the 28,000-point mark for the first time in four years. Although it ultimately failed to hold steady, the Hang Seng Index still closed up 141 points or 0.51%, marking its seventh consecutive day of gains. However, the Hang Seng Tech Index underperformed, closing at 5,841 points, down 1%. Nonetheless, trading remained brisk, with turnover reaching 332 billion yuan. Among the constituents, $XINYI GLASS(00868.HK) performed the best, surging about 7.4%. Property stocks also performed well, with $CHINA OVERSEAS(00688.HK), $LONGFOR GROUP(00960.HK), and China Resources Land (01109.HK) rising by 6.1%, 5.8%, and 3.7%, respectively. Among the decliners, casino stocks performed the worst, with Sands China (01928.HK) and Galaxy Entertainment (00027.HK) falling nearly 8% and 4%, respectively. Some tech stocks also underperformed, with SMIC (00981.HK) and NetEase (09999.HK) both dropping about 2.6%.

The Hang Seng Index failed to hold above the 28,000-point mark yesterday, but as long as it remains above the 10-day moving average (26,954 points) and trading volume remains supportive, the outlook remains cautiously optimistic.

Source: Bright Smart Securities