Worth bobbing for Apple-related stocksBusiness | 17 Feb 2017
It's all US again. The Dow rose for the fifth straight day to an all-time high of 20,611, lifting Asia Pacific markets yesterday. The Shanghai Composite index gained 0.51 percent.
In Hong Kong, the China Enterprises index rose 0.18 percent to a 15-month high, while the Hang Seng Index was up 0.47 percent at 24,107, boosted by southbound liquidity inflows from China.
China's mutual funds and insurers were said to be major buyers. So, it is reasonable to see major firms that they are familiar with post gains.
China Construction Bank (939) has so far risen by 9.1 percent this week, while China Life (2628) has spiked by 13 percent in the last 10 trading sessions.
Tencent (700) has gained 12 percent at HK$212 since last month and it may again test its all-time high of HK$220.80. Nomura set a HK$240 target.
Range trading may be seen in sectors with unclear prospects, such as shipping and mining.
Lenovo Group (992) fell 6.6 percent yesterday after its quarterly results missed estimates. This stock should be avoided.
As Apple Inc rose to an all-time high after Warren Buffet increased his stake, related shares, notably Sunny Optical (2382) and AAC Tech (2018), are likely to keep performing well.
They are worth buying on dip.
Dr Check and/or The Standard bear no responsibility for any decision made based on this column.