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Stanley Chik: Alibaba ADR Rises Sharply; HSI Poised to Reclaim 250MA
Hong Kong equities snapped a two-day decline yesterday (28th) owing to the sharp uptick posted by TENCENT (00700.HK), said Stanley Chik, a research head at Bright Smart. The HSI wrapped the session up with a 216-pt rise. The index once returned to its 250MA (19,829) over yesterday’s session but was ultimately unable to defend such a level, which signaled considerable resistance at the level.
However, Chik contended that the HSI may mount another challenge today (29th) to reclaim its 250MA, as BABA-SW (09988.HK)’s ADR leapfrogged 14% after the group’s chairman and CEO Daniel Zhang announced a corporate restructuring plan under which six key business groups will be formed, thus paving way for potential independent fund-raising and listings in the future.
Stimulated by the news, Chik anticipated that Hong Kong stocks could elevate notably at market open today. If the HSI manages to reclaim its 250MA, the short-term trajectory of Hong Kong equities may hail an inflection point, Chik concluded.
(The author is the licensee of SFC, who holds shares of TENCENT).
AAStocks Financial News