Investment 30/9/2024

Hong Kong stocks continued their recent strength on the futures settlement day.  The Hang Seng Index opened 522 points higher at 20,446 points, and then rose 818 points to 20,743 points, hitting a high of more than 17 months. It closed up 707 points or 3.55% for the whole day at 20,632 points, rising for the fourth consecutive day; the technology index rose 243 points points or 5.78%, reported at 4,453 points.  Main board transaction volume reached HK$445.7 billion, setting a historical record.

 The Hang Seng Index began to fluctuate in a large horizontal zone between 14,600 and 22,700 points in March 2022, and began to fluctuate between 14,600 and 20,900 points in April last year, forming a smaller horizontal zone.  Last week, the Hang Seng Index broke through the 19,000 mark and advanced into the resistance zone of 20,400 to 20,900 points. If it rises above this level, the next target will be the top of the previous large horizontal zone of 22,700 points.  However, the Hang Seng Index is currently seriously overbought. The 9RSI on the daily chart has risen to 92.27. Beware of adjustments occurring at any time. The first step is to retest the support of the May high of 19,706 points.  In the event of a larger adjustment, the Hang Seng Index will be supported at 18,800.

 Hong Kong stocks are still favored in the short term, but the cumulative gains in the Hang Seng Index have been large, and are mainly driven by sectors that benefit from national policies, such as technology platform stocks, domestic insurance, domestic real estate and domestic demand stocks. The rise is not comprehensive, and the index may not have room to rise again at this stage. too much.  The mainland's combined efforts to rescue the market have caused funds to reinvest in the stock market, but it remains to be seen how much it will help the real economy.  In particular, market confidence in the real estate market is still weak. If developer sales data do not improve significantly in the next few months, the market may refocus on the effectiveness of policies.

 European stock markets continued to rise, with British, French and German stock markets rising by 0.43%, 0.64% and 1.22%.

 U.S. inflation eased, strengthening the case for the Federal Reserve to continue cutting interest rates, and U.S. stocks showed individual gains on Friday.  After the Dow opened 52 points higher, the gain significantly expanded to 453 points, reaching a new market high of 42,628 points. It eventually lost most of its gains and still hit a record closing high; the S&P 100 once rose 0.32% to 5,763 points, and then Repeated declines; the Nasdaq, which is dominated by technology stocks, fell repeatedly by 0.67%.

 U.S. stocks closed with the Dow Jones Industrial Average rising 137 points, or 0.33%, to 42,313 points; the S&P Index retreating 7 points, or 0.13%, to 5,738 points; and the Nasdaq Composite falling 70 points, or 0.39%, to 18,119 points.

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