Broker forecasts blue chips at 30,000 in second halfBusiness | 11 Jun 2019 5:50 pm
Everbright Sun Hung Kai set its target for the Hang Seng Index at between 25,000 and 30,000 in the second half this year factoring in reasonable valuations and ongoing trade uncertainties.
The broker forecasts that the Shanghai Composite Index will trade between 2,700 and 3,200, while the Hang Seng China Enterprises Index will trade between 9,700 and 12,000.
The brokerage is overweight on food and beverage, railways and infrastructure, gold, and raw materials sectors.
It forecasts that the yuan will hover around 6.68 to 7.15 per US dollar this year and that the US Dollar Index will test 100.
It also predicted that the US Federal Reserve will cut the benchmark this year by 25 basis points.