The Hong Kong stock market failed to continue yesterday's strong performance today. The three major indices rose and fell in early trading and then continued to fluctuate downward throughout the day. The Heng Seng Technology Index fell more than 2% in the afternoon. By the close, the Hang Seng Index fell 0.52% or 95.07 points to 18335.32 points, with a total daily turnover of HKD 103.555 billion. The Heng Seng state-owned enterprise index fell 0.48% to 6556.1 points, and the Heng Seng Technology Index fell 1.68% to 3767.88 points.
According to Futu Securities, the Hong Kong stock market failed to continue yesterday's strong performance today. The three major indices rose and fell in early trading and then continued to fluctuate downward throughout the day. The Heng Seng Technology Index fell more than 2% in the afternoon. By the close, the Hang Seng Index fell 0.52% or 95.07 points to 18335.32 points, with a total daily turnover of HKD 103.555 billion. The Heng Seng state-owned enterprise index fell 0.48% to 6556.1 points, and the Heng Seng Technology Index fell 1.68% to 3767.88 points.
Huatai Securities said that the Hong Kong stock market has cooled down since the end of May, when it temporarily reached a peak below 18,000 points. The valuation of the Heng Seng Technology Index is lower than in early November last year, when Moody's downgraded China Vanke's rating. The adjustment space of Hong Kong stocks may be limited. Guotai Junan International pointed out that the national team has once again supported Hong Kong-listed central state-owned enterprises, and the bank believes that market sentiment can be boosted. It is bullish on growth stocks and high-yield state-owned enterprise shares with reform dividends.
Blue chip performance
CNOOC(00883) reached a new historical high by rising 3.52% to HKD 23.5 by the end of the day, with a turnover of HKD 2.893 billion and contributing 20.13 points to the Hang Seng Index. CITIC Securities previously pointed out that CNOOC maintained high performance in the past year and the first quarter of this year, and its exploration and development results were significant, reflecting long-term investment value. The bank believes that CNOOC's steady growth demonstrates its long-term value. Last year's dividend payout ratio was 43.6%, and the bank expects the company's cash flow performance to remain strong in the next three years, and the dividend payout ratio may maintain a relatively high level.
As for other blue chips, OOIL(00316) rose 3.13% to HKD 135.2, contributing 0.86 points to the Hang Seng Index; CNOOC(00857) rose 2.36% to HKD 7.8, contributing 6.14 points to the Hang Seng Index; Sino Biopharm(01177) fell 5.28% to HKD 2.69, dragging down the Hang Seng Index by 2.73 points; and China Res Beer(00291) fell 3.77% to HKD 28.05, dragging down the Hang Seng Index by 2.85 points.
Hot sectors
On the market, large tech stocks fell today; real estate sales and investment continued to be weak in May, and mainland real estate stocks collectively fell; dining and beer and other consumer stocks all fell; photovoltaic stocks, pharmaceutical stocks, and others all showed weakness; on the other hand, the high dividend concept stocks were active again, among which petroleum stocks, telecommunication stocks, coal industrial concept stocks performed well, and CNOOC continued to hit new historical highs; semiconductor stocks, shipping stocks, and others rose against the trend.
1. High dividend concept stocks are active. By the end of the day, China Coal Energy(01898) rose 4.51% to HKD 9.96; CNOOC(00883) rose 3.52% to HKD 23.5; China Telecom(00728) rose 2.75% to HKD 4.48; Agricultural Bank of China(01288) rose 1.78% to HKD 3.44.
China New Investment, a subsidiary of China Minxin Investment, announced on its official website that it had subscribed for the first issue of the China Securities Central Enterprise Dividend ETF, jointly launched with GF Fund, Southern Fund, Invesco Great Wall Fund and other top institutions. This move conveys a positive signal of firm confidence in the long-term value of Hong Kong-listed central state-owned enterprises and also demonstrates the responsibility and obligation of state-owned capital operation companies to maintain the market value of central state-owned enterprises and enhance their pricing power. Institutions believe that "China Special Assessment" shares are the investment theme throughout the year, and with the addition of China New Investment, this further highlights the investment value of relevant weights of "China Special Assessment" shares, and the relevant stock price performance is worth the market's expectation.
2. Shipping stocks rose against the trend. By the end of the day, Pacific Basin(02343) rose 7.17% to HKD 2.69; Cosco Shipping Holdings(01919) rose 4.14% to HKD 14.6; Sitc International Holdings(01308) rose 3.46% to HKD 22.4; and OOIL(00316) rose 3.13% to HKD 135.2.
On June 20, the shipping index (Europe) rose more than 6% to a new historical high. Yide Futures pointed out that the main logic of the current market transaction is still the short-term tight supply of shipping capacity and the expectation of demand improvement. Therefore, it is expected that the uptrend will not change until the supply and demand fundamentals reverse, and the strategy will maintain a biased thinking. Due to the crisis in the Red Sea region that has not been eased, the mainstream shipping companies' detour time continues to be delayed, and the increasing port congestion intensifies the pressure on shipping capacity supply. This year's shipping peak season may be postponed by about one month, and the inflection point of freight rates is expected to appear in October. Pay attention to the anti-hedging opportunities from October to December.
Most semiconductor stocks have risen. As of the close, Solomon Systech (02878) rose 4.22%, quoted at HKD 0.37; Semiconductor Manufacturing International Corporation (00981) rose 1.48%, quoted at HKD 19.14; Shanghai Fudan (01385) rose 0.91%, quoted at HKD 13.32; Hua Hong Semiconductor (01347) rose 0.41%, quoted at HKD 24.6.
According to media reports, under the situation of insufficient production capacity, Taiwan Semiconductor will increase prices for the 3nm and 5nm advanced processes and advanced packaging. Among them, the 3nm OEM quotation of TSMC may rise by more than 5%, and the annual quotation of advanced packaging for next year may rise by 10%-20%. It is reported that the capacity utilization rate of major wafer factories has significantly increased, and many manufacturers have reached full production or even exceeded 100% utilization rate. In the industry's view, the continuous improvement of the wafer OEM capacity utilization rate and the full production of some OEM factories will bring about elasticity of price increase in the future.
Mainland real estate stocks fell collectively. As of the close, China Vanke (02202) fell 5.04%, quoted at HKD 4.9; Shimao Group (00813) fell 4.94%, quoted at HKD 0.77; Sunac (01918) fell 3.28%, quoted at HKD 1.18; Yuexiu Property (00123) fell 2.98%, quoted at HKD 5.54.
On June 17, the National Bureau of Statistics released industry data for January-May 2024, with real estate development investment falling by 10.1% year-on-year in the first five months; sales area and sales revenue of commercial buildings decreased by 20.3% and 27.9% year-on-year, respectively, and the actual funds decreased by 24.3% year-on-year. Guotai Junan pointed out that the trend of weak investment in the real estate industry and the warming of the sales end continue, considering the base effect, and the continued warming trend needs to be further consolidated. Pay attention to the growth of unsold area, which represents the elimination of risks, which is still on the rise. The bank pointed out that the bottom of the risk has been explored, and although it is still in the adjustment period, the market will not worry about risks again.
Popular fluctuating stocks
Changjiu Shares (06959) plunged after a surge of 16 times. As of the close, it fell 65.71%, quoted at HKD 36.
The Hong Kong Securities and Futures Commission stated that it recently inspected the equity distribution of Changjiu Shares, and the results showed that as of June 3 this year, the company's nine shareholders collectively held 48.739 million shares (equivalent to 24.11% of the issued share capital). The equity, together with the 150 million shares held by the chairman and CEO's family, accounted for a total of 98.31% of the issued share capital.
Nan Nan Resources (01229) announced good earnings, and as of the close, it rose 32.67%, quoted at HKD 0.199.
Nan Nan Resources released good earnings, expecting a profit after tax of no less than HKD36 million for the fiscal year ending March 31, 2024 (2024 fiscal year), compared with a loss of HKD59.04 million in the previous year. The main source of income conversion is the fair value gain of convertible bonds of approximately HKD62.79 million.
Mongolia Energy (00276) strengthened after its performance announcement. As of the close, it rose 20.55%, quoted at HKD 0.88.
Mongolia Energy announced that for the fiscal year ending March 31, 2024, the company's revenue was HKD3.173 billion, compared with HKD2.905 billion in the same period last year. The company's owners should have a net profit of HKD1.678 billion for the fiscal year, compared with a loss of HKD1.603 billion in the same period last year, realizing a turnaround.
Sa Sa International (00178) rose sharply in the afternoon, and as of the close, it rose 7.89%, quoted at HKD 0.82.
Sa Sa International announced its annual performance for the fiscal year ending March 31, 2024: revenue increased by 24.8% year-on-year to HKD4.3675 billion, gross profit increased by 27.3% year-on-year to HKD1.7834 billion; net profit was about HKD219 million, an increase of about 2.76 times year-on-year; it is recommended to distribute a final dividend of 5 HK cents per share, and no dividend was provided in the same period of last year.