Paying attention to performance stocks with unusual movements | Kwan Cheuk-chiu
The market’s daily turnover began to drop to just over HK$100 billion, which shows the limited resilience of Hong Kong stocks. In addition, Hang Seng Index (HSI) has closed below the 50-day moving average for four consecutive days. The technical trend is very poor. It seems that there is a good chance of HSI returning to the recent low of 28,326 points after the Federal Reserve released its economic projections. Once it plunges through this level, the market outlook will move down toward the 100-day moving average of 27,689 points. Would it get there? We will wait and see.
It was the peak season for listed companies to announce their results recently, so many stock prices have made a rebound from the trough. However, can they maintain a strong trend after the rebound? All depend on the companies’ performance and the management’s reviews of the business prospects. Therefore, it is worth paying more attention to the stock prices of the companies that will be announcing their results. When you see any unusual movement, buy as soon as possible and hopefully gain some quick profits through this wave of results announcements.
There was a cluster of infected cases in a fitness center last week, which caused a significant rise of the confirmed cases in the past few days. Luckily, the government has got the outbreak under control with effective tracing and containing measures. Judging by how the outbreaks from Mr. Ming’s Chinese Dining at K11 Musea last month and the fitness center of last week were dealt with, it seems the slow-reacting government has finally understood the way to fight the epidemic and can control the spread of the virus in a short time.
I assume the government will gradually ease the anti-epidemic measures, which will be positive news for the retail industry. The central government will also open the border sooner or later. This year, the retail stocks should have a huge rebound as long as Hong Kong has no more large outbreaks of infected cases.
(Kwan Cheuk-chiu, economist, director of ACE Centre for Business and Economic Research)
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