Mourinho's Daily Review: The Israel-Iran conflict suddenly ceased! The Hang Seng Index firmly stands above 24,000 points.
Hello everyone, today the market $Hang Seng Index(00HSI.HK) performed very strongly throughout the day, benefiting from the good news announced by Trump before the market that Iran and Israel would completely cease fire. The market once rose by more than 500 points in a single day, further breaking last week's high and reaching today's high of ~24,229 points. In fact, the market trend had already shown clear signs of strengthening yesterday. As I mentioned in last week's review, the market was expected to further consolidate and test the support level at 23,000 points. However, the market only fell to yesterday's low of ~23,272 points before rebounding, and then turned from a decline to a rise, completely unaffected by the negative news over the weekend about the US suddenly attacking Iran's nuclear facilities, which escalated the conflict. Today, with the good news, the market reacted strongly and surged, firmly returning above 24,000 points and reclaiming the 10-day and 20-day moving averages. Finally, the market closed near the high at 24,177 points. Today's market turnover once again exceeded 200 billion yuan, totaling 240.4 billion yuan, with trading activity heating up again and strong momentum.
The main reason for today's high opening and strong performance was the benefit from the Iran-Israel ceasefire and the continued strong performance of the three major US stock indices $Dow Jones Industrial Average(.DJI.US) $NASDAQ Composite Index(.IXIC.US) $S&P 500(.SPX.US), which are continuously reaching new highs. In addition, today the A-share market $SSE Index(000001.SH) broke through the key resistance level at 3,400 points and also set a new high for June at ~3,423 points. Therefore, today's market surge was led by the financial sector, as both domestic banks and insurers performed well. Among the blue chips, the best performers were $PING AN(02318.HK) $CHINA LIFE(02628.HK), which both hit new highs for June. Meanwhile, heavyweight blue chips like $HSBC HOLDINGS(00005.HK) $AIA(01299.HK) also showed strong performance today. Additionally, domestic bank stocks like $CCB(00939.HK) $ICBC(01398.HK) $CM BANK(03968.HK) all broke new highs today, showing very strong momentum.
In addition, today the new energy vehicle sector was also a market focus, as $Tesla(TSLA.US) surged over 8% after launching Robotaxi. Therefore, today the new energy vehicle sector led the market surge, with heavyweight tech blue chips like $XIAOMI-W(01810.HK), which is set to announce its new YU7 car, breaking through the 55 yuan range with a nearly 4% increase. Meanwhile, new energy vehicle leaders like $BYD COMPANY(01211.HK), $LI AUTO-W(02015.HK) $GEELY AUTO(00175.HK) all rose over 3%, performing very well. Therefore, if investors believe that Robotaxi could drive up new energy vehicle-related concept stocks in the future, whether electric vehicles or electric vehicle battery suppliers, they may want to pay attention to the ETF issued by GlobalX that tracks the Solactive China Electric Vehicle and Battery Index, $GX CN EV BATT(02845.HK). The components of this ETF are A-share listed stocks such as $BYD(002594.SZ) $CATL(300750.SZ) $Inovance(300124.SZ), etc.
On the other hand, the performance of the heavyweight tech blue chips ATM $TENCENT(00700.HK) $BABA-W(09988.HK) $MEITUAN(03690.HK) still lacks significant strength, especially $MEITUAN(03690.HK), which was particularly disappointing, falling against the market trend. The only tech stock that performed relatively well was $KUAISHOU-W(01024.HK).
Today, besides the strong performance of the domestic insurance and banking sectors, the brokerage sector also performed well, with the best performers being $CMSC(06099.HK) $CICC(03908.HK) $CITIC SEC(06030.HK). The strong performance of brokerages was also driven by the strong performance of A-shares, indicating that capital is optimistic about the gradual entry of Hong Kong and China stocks into a bull market. Additionally, today the pharmaceutical sector also performed well, including $REMEGEN(09995.HK) $ASCENTAGE(06855.HK) $INNOVENT BIO(01801.HK), all rising, with the strongest gainer being $REMEGEN(09995.HK).
Finally, as mentioned earlier, recent bank deposit interest rates have been relatively low. For investors mainly focused on dividends, they may want to consider the GlobalX ETF that pays high dividends twice a year, $GX HS HIGHDIV(03110.HK), with a yield of 6+%. In addition, GlobalX also has Covered Call ETFs tracking related indices, such as the one tracking the Hang Seng Index, $A GX HSICC(03419.HK), the one tracking the HSCEI, $A GX HSCEICC(03416.HK), and the one tracking the Hang Seng TECH Index, $A GX HSTCC(03417.HK). The selling point of GlobalX's Covered Call ETFs is that they pay dividends every month. However, since these ETFs enhance returns by selling call options and regularly distribute dividends to investors, the aim is to pay dividends monthly, but the dividend yield is not guaranteed and mainly fluctuates with market volatility. Nevertheless, based on last year's dividend yield, it exceeded 10%, offering relatively high and stable returns. Therefore, this ETF is more suitable for conservative investors focused on medium- to long-term dividend income.
Summary
Today's market trend continued yesterday's upward momentum while also showing a very strong and high-seeking pattern. It is worth mentioning that today's market rise was completely led by multiple sectors, allowing the market to return to 24,000 points. The market's new upward wave will definitely advance towards this year's high of ~24,874 points. Therefore, on the eve of the half-year end, the market absolutely has the potential to break through 25,000 points.
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