ET Net News Service, 25th September - With northbound funds halted during the Mid-Autumn Festival holiday, turnover in the Hong Kong stock market shrank significantly and support weakened. Amid rising US Treasury yields in overseas markets, selling pressure intensified in the morning session, causing the Hang Seng Index to fall over 400 points at one point, hitting a low of 24,275. In the afternoon, some funds returned to bargain hunt, narrowing the decline. The index rebounded above the 24,500 level and ended the day lower.
With northbound funds suspended, the total daily turnover in the Hong Kong market was just over HK$100 billion. On the daily chart, the sharp reduction in the decline and recovery to 24,500 formed a long lower shadow, theoretically indicating some support. However, due to the significantly reduced turnover today, the reliability of this positive pattern is diminished. Therefore, further confirmation from subsequent price movements and the flow of northbound funds in the three trading days before National Day next week will be needed to determine the market direction.
*Tech stocks remain weak; individual pharmaceutical stocks perform strongly against the market*
Rising bond yields continue to drag down tech stocks: Xiaomi (01810) fell 2.56% to HK$25.90, Alibaba (09988) dropped 1.45% to HK$108.40, Kuaishou (01024) declined 1.57% to HK$30.02, Baidu (09888) slipped 1.16% to HK$85.30, Meituan (03690) decreased 0.83% to HK$71.65, while Tencent (00700) softened 0.41% to HK$436.60.
The four major mainland banks, which provided support yesterday, fell today as northbound funds were cut off: ICBC (01398) dropped 1.89% to HK$7.515, CCB (00939) declined 1.5% to HK$9.535, ABC (01288) fell 1.44% to HK$6.515, and BOC (03988) softened 0.99% to HK$5.98.
Some biotech stocks rebounded and outperformed the market: WuXi Biologics (02269) rose 2.1% to HK$53.00; WuXi AppTec (02359) gained 2.2% to HK$209.60; BeiGene (06160) increased 0.6% to HK$216.40. However, Innovent Biologics (01801) dipped 0.1% to HK$99.70; China Biopharmaceutical (01177) fell 0.4% to HK$5.57; CSPC Pharmaceutical Group (01093) declined 0.1% to HK$9.33.
*Chow Tai Fook Creation enhances shareholder returns, attractive for medium-to-long term accumulation*
Chow Tai Fook Creation (00659) announced a net profit of HK$2.393 billion for the full year ended June this year, an increase of 10.7% year-on-year. It declared a final dividend of 33 cents per share, up 18% year-on-year, and proposed issuing bonus shares on the basis of one bonus share for every ten shares held, marking the second consecutive year of issuing bonus shares in its final results. Mr. Cheng Chi Ming, Executive Director and Co-CEO of the Group, stated that the company will try to "pay more when earning more." Issuing bonus shares considers not only share liquidity but also provides shareholders with additional trading opportunities, and the company will continue its dividend payout policy.
Nowadays, very few Hong Kong stocks regularly issue bonus shares. Chow Tai Fook Creation's consecutive bonus share issuance for two years is rare, significantly enhancing its holding appeal. In terms of stock price movement, after the announcement of bonus shares, Chow Tai Fook Creation's share price gapped up 6% today. Technically, it has formed a triangle breakout, breaking out of the triangular consolidation pattern formed since the beginning of the year. The stock is expected to continue moving upwards. Aggressive investors could consider buying at current levels, while more cautious investors may wait for a pullback near HK$8.20 to accumulate positions for medium-to-long term holding. (lc)
With northbound funds suspended, the total daily turnover in the Hong Kong market was just over HK$100 billion. On the daily chart, the sharp reduction in the decline and recovery to 24,500 formed a long lower shadow, theoretically indicating some support. However, due to the significantly reduced turnover today, the reliability of this positive pattern is diminished. Therefore, further confirmation from subsequent price movements and the flow of northbound funds in the three trading days before National Day next week will be needed to determine the market direction.
*Tech stocks remain weak; individual pharmaceutical stocks perform strongly against the market*
Rising bond yields continue to drag down tech stocks: Xiaomi (01810) fell 2.56% to HK$25.90, Alibaba (09988) dropped 1.45% to HK$108.40, Kuaishou (01024) declined 1.57% to HK$30.02, Baidu (09888) slipped 1.16% to HK$85.30, Meituan (03690) decreased 0.83% to HK$71.65, while Tencent (00700) softened 0.41% to HK$436.60.
The four major mainland banks, which provided support yesterday, fell today as northbound funds were cut off: ICBC (01398) dropped 1.89% to HK$7.515, CCB (00939) declined 1.5% to HK$9.535, ABC (01288) fell 1.44% to HK$6.515, and BOC (03988) softened 0.99% to HK$5.98.
Some biotech stocks rebounded and outperformed the market: WuXi Biologics (02269) rose 2.1% to HK$53.00; WuXi AppTec (02359) gained 2.2% to HK$209.60; BeiGene (06160) increased 0.6% to HK$216.40. However, Innovent Biologics (01801) dipped 0.1% to HK$99.70; China Biopharmaceutical (01177) fell 0.4% to HK$5.57; CSPC Pharmaceutical Group (01093) declined 0.1% to HK$9.33.
*Chow Tai Fook Creation enhances shareholder returns, attractive for medium-to-long term accumulation*
Chow Tai Fook Creation (00659) announced a net profit of HK$2.393 billion for the full year ended June this year, an increase of 10.7% year-on-year. It declared a final dividend of 33 cents per share, up 18% year-on-year, and proposed issuing bonus shares on the basis of one bonus share for every ten shares held, marking the second consecutive year of issuing bonus shares in its final results. Mr. Cheng Chi Ming, Executive Director and Co-CEO of the Group, stated that the company will try to "pay more when earning more." Issuing bonus shares considers not only share liquidity but also provides shareholders with additional trading opportunities, and the company will continue its dividend payout policy.
Nowadays, very few Hong Kong stocks regularly issue bonus shares. Chow Tai Fook Creation's consecutive bonus share issuance for two years is rare, significantly enhancing its holding appeal. In terms of stock price movement, after the announcement of bonus shares, Chow Tai Fook Creation's share price gapped up 6% today. Technically, it has formed a triangle breakout, breaking out of the triangular consolidation pattern formed since the beginning of the year. The stock is expected to continue moving upwards. Aggressive investors could consider buying at current levels, while more cautious investors may wait for a pullback near HK$8.20 to accumulate positions for medium-to-long term holding. (lc)
