The stock prices of heavyweights such as Kuaishou and Meituan fell, dragging down the Hang Seng Technology Index from hitting new highs, and the market trend is still strong.
The Hang Seng Technology Index (HSTECH) adjusts its constituent stocks at the end of each month, and the latest update time is December 31, 2022. After adjustment, the three companies with the largest proportion since January 2023 are: Kuaishou, Tencent Holdings and Meituan. The stock prices of these three companies have the greatest impact on the trend of the Hang Seng Technology Index.
market atmosphere
Hong Kong stocks continue to be affected by the trend of mainland China and the US stock market. Currently, factors in mainland China and individual stocks lead the trend of the Hang Seng Index.
Overseas, the U.S. stock market entered the earnings season last Friday, and key companies announced their financial reports one after another. Pay attention to whether the market situation will change.
The business contraction and layoffs of large technology companies, banks and layoffs have made investors feel that listed companies are worried about the economic slowdown, and the market is waiting for the latest financial reports and forward-looking guidance from company financial data. If the earnings report of the US stock market is negative, it may trigger a sell-off in the market. On the contrary, under the influence of cooling inflation and the slowdown of the Fed’s interest rate hike, the US stock market may still rebound due to the positive earnings report. Goldman Sachs and Morgan Stanley will announce their earnings before the market on Tuesday, and Netflix will announce its earnings before the market on Thursday.
On the mainland, as the Chinese Lunar New Year is approaching, expectations for economic recovery and holiday consumption have increased, capital inflows from north to south are evident, and market sentiment is relatively active, which will still support the index to maintain its strength.
Heavyweight stocks such as Kuaishou and Meituan generally fell today. The reason may be related to the anti-corruption campaign launched by platform companies recently. This factor will not have a long-term adverse impact on stock prices and indexes.
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chart trend
HSTECH maintained its rebound as a whole, with the key turning point at the 4000 mark. The recent index fluctuates between 4400-4600, it is advisable to wait for further guidance. If it breaks through 4600, it is expected to test the 4800 and 5000 barriers; if it falls back below 4400, it will pull back to test 4200-4000.
strategic orientation
In the long run, the valuation of Hong Kong stocks is relatively low, and the Hang Seng Technology Index has concentrated the best technology and Internet stocks in Hong Kong. Regular investment in the Hang Seng Technology Index ETF is the best choice. New changes are taking place in the macro fundamentals, especially the Fed’s interest rate hike expectations are weakening After the relaxation of China’s epidemic prevention and control, the economic momentum has re-gathered, and foreign capital has refocused on the pricing of the Chinese and Hong Kong stock markets. It should be said that the most difficult time for the Hong Kong stock market has passed. With the rebound at the bottom, the previous fixed investment has already made a profit, and it is still at a low level. Hold it firmly and wait for the market to continue to rise.
(by Arthur)
Follow me on Twitter @ArthurZ22426704
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