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Francis Kwok: HK Mkt Still Lacks Strong Upward Steam; Xmas Bell Charms Mkt to Buy HSBC
Francis Kwok, Vice Chairman of Hong Kong Institute of Financial Analysts and Professional Commentators, spotted another technical recovery in the HK market yesterday (14th), with t...
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Francis Kwok: HK Mkt Still Lacks Strong Upward Steam; Xmas Bell Charms Mkt to Buy HSBC
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Francis Kwok, Vice Chairman of Hong Kong Institute of Financial Analysts and Professional Commentators, spotted another technical recovery in the HK market yesterday (14th), with the HSI opening 191 pts higher to 16,419 in the early morning of yesterday's trading session, and then jolting between 16,352 and 16,577.

From a technical point of view, as the HSI slightly reclaimed the 10MA (around 16,415), Kwok deemed that signs of stabilization should have lighted up for local bourse. However, whether the market can test the 20MA (around 16,962) harnessing the odds in the short term depends on the trend of capital inflow. But as long as the HSI can hold on to the 10MA or re-cross it, Kwok would take its as a sign that the market has already averted sluggishness.

Related NewsJPM Reiterates Rating Underweight on NEW WORLD DEV, Expects BANK OF E ASIA/ HANG SENG BANK/ BOCHK to Be More Affected Based on HK Bank Pressure Test
After mid-December, fund managers start taking Christmas and New Year holidays. During this period, due to the gradual decrease of market participants, the general trading will be a little bit tepid. In the lack of matching momentum, even if the market can occasionally rebound, the market's upswing will be capped, that is to say, the uptrend during this period may only be a technical rebound with volatility but no upswing.

In the past, the market took the Christmas bell ring as an indication to buy HSBC HOLDINGS (00005.HK)  +0.700 (+0.945%)    Short selling $201.49M; Ratio 22.910%   stocks. As to whether this is the same for this year, Kwok pointed to the performance of HSBC HOLDINGS in the past month. Since the price of HSBC HOLDINGS has been sticking to around $60, the stock is outshining the market. Technically, as long as buyers could be more aggressive, HSBC HOLDINGS is still likely to further test upper level of $63-64.

(The author is a licensee of SFC)
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-12-20 16:25.)

Related NewsJPM Ratings, TPs on HK Developers/ Banks (Table)

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