HSI higher on 'good signals'

Business | Sunny Tse 8 Jan 2019

The Hang Seng Index rose as much as 400 points yesterday, but closed only 209 points or 0.8 percent higher, despite the reserve requirement cut and trade war negotiation.

The market saw trade war negotiation as sending good signals to the HSI, as US President Donald Trump said on Twitter earlier that "we are doing well in various Trade Negotiation currently going on. At some point this had to be done."

There were also expectations that the index would climb to 26,000 points as the Dow Jones Index surged 3.7 percent or 832 points after Federal Reserve chairman Jerome Powell said it will be "patient" in its monetary policy.

Janet Yellen, former chair of the board of governors of the Fed said that one or two rate hikes could stop the overheating US economy.

Wendy Liu, chief China strategist at UBS said at the 19th UBS Greater China Conference in Shanghai that Hong Kong stocks may trend lower in early 2019 before seeing a rebound, foreseeing that first two quarters of earnings may be lower than expectations.

Liu said it is difficult for the internet sector in these two years to rebound to the historical high performance of 2017 and commented "2019 will be a year of bitter before sweet; while 2018 was sweet before bitter."

Ting Gao, head of China strategy of UBS securities, predicts that by the end of 2019, the CSI 300 will rise as much as 26 percent to 3,800 and in 2019 export trading will weaken.

Search Archive

Advanced Search
June 2019

Today's Standard

Yearly Magazine

Yearly Magazine