Hang Seng Tech Index closing 1.67% lower

Hang Seng Tech Index is now down 3 days in a row, today closing at -1.67% lower. At one point in time, the index was as low as 6,833.88 with all the constituent stocks in the red. If you noticed once it crossed through 7,000, the rebound is pretty fast and started its consolidation before making an up move. 

It seems like 7,000 is the support level at this point in time and should hold when it touches or pierce through this level.  

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Looking at the gainers for today, Sunny Optical and Tencent popped a gain of more than 1% and at one point in time, both were negative and close to its moving average (20MA for Sunny and 50MA for Tencent) before rebounding higher. Tencent will be announcing their results today and we will see if it will help push the prices higher for the rest of the week and at the same time, whether there are any geo political tension between China and US to negate any good news. 

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Losers for today are primarily Hua Hong and China Lit where they have dropped -10.843% and -9.486% respectively. At one point in time, Hua Hong was down close to 17% before closing at 29.60. The losers however are small cap companies as you can see as compared to the top 5 gainers so we will need to monitor closely how the big cap companies will try to hold up the index. 

Courtesy of AAStocks

Disclaimer: Whatever posted here is purely my personal view. It is not an inducement to trade and not responsible for any losses. Tips and News might just be rumors in the market. I take no responsibility for any gains or losses as a result of reading my analyses, judgement and opinions. Trade with care and diligence please!

Hang Seng Tech Index closing -0.65% lower

Hang Seng Tech Index closed lower for two days in a row, today at -0.65% lower. It was positive during the start of the day before it started to sell down about 1 hour into its opening and ended lower after lunch hour. 

Top gainers for today are Leveno and Fit Hon Teng which both are up more than 4% today. Tencent also staged a recovery today, reversing its downtrend with a close of +2.291%. It was at a high of 526 early today before it started to retract back to a low of 510 and eventually closing slightly higher at 513.50. Take note that Tencent will be reporting its earnings on 12 August and will see if good news can push its price higher. 

Top losers for today are Koolearn where it fell -7.343%. Overall there are more losers than winners in the HSTI composite and it did not show too much weakness considering Tencent and Alibaba's gain squared off Meituan and Xiaomi's losses. 

Courtesy of AAStocks

Courtesy of AAStocks

Courtesy of AAStocks

Disclaimer: Whatever posted here is purely my personal view. It is not an inducement to trade and not responsible for any losses. Tips and News might just be rumors in the market. I take no responsibility for any gains or losses as a result of reading my analyses, judgement and opinions. Trade with care and diligence please!

Tencent and what's next?

If you have referred to my previous post on the impact to Tencent, Bank of America has also indicated in its assessment today that the impact would be minimal as I have indicated and BofA highlighted that there were about 5.9 million WeChat users in the US who were mostly Chinese immigrants and students, being less than 1% of total WeChat users with low monetization rate. As rationale as we can be, the stock market isn't that rationale and we are likely to see more volatility in the price action for Tencent. 

Source: AAStocks

Volume: Looking at its daily chart, it looks pretty bearish for the past 2 days with selling volume of 62 million and 48 million, 2-3x more of its average volume of 15 million per trading day. The last time we saw such volume is during March where the markets dropped severely and volume on a daily basis back then was 40-60 million on average over 9 trading days. 

Trend: It has breached its 20MA easily on 7 August and continued to close before its 20MA today. However if you noticed, when it nearly touched its 50MA for the 2 trading days, it did show support to not break its 50MA. We will need to monitor if the 50MA can hold and if it does, we would likely see 538 as its first resistance point at the 20MA. If it doesn't, the next level is likely at the 61.8% Fibonacci at 474.26. 

We will need to monitor the geo-political situation between US and China as US is targeting one of the biggest China company and we may expect China to target likely in this case, Apple for whatever reason it can think of to make life difficult. 

My view on this is that as this tit for tat prolongs, it does not really help the current US president in his quest for re-election as the US Business leaders will likely find it extremely difficult to work with their Chinese counterparts and potentially lose out on the Chinese market. The Chinese normally works on relationships and to repair relationships will take years.

Disclaimer: Whatever posted here is purely my personal view. It is not an inducement to trade and not responsible for any losses. Tips and News might just be rumors in the market. I take no responsibility for any gains or losses as a result of reading my analyses, judgement and opinions. Trade with care and diligence please!

Hang Seng Tech Index closing 2.85% lower

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Markets were not kind to the Tech Index today, choppy session throughout the day and closing -2.85% lower withe BYD, SMIC and Tencent leading the fall. As Tencent is the largest constituent stock for HSTI, it did result in the big fall for the index and due to the news that continues to circle around the impact on Tencent with WeChat potentially to be banned in US. 

Gainers for today are only two which is HENGTEN and MEITUAN. Meituan was up more than 1% throughout the day before closing at +0.27%. 

Courtesy of AAStocks

Courtesy of AAStocks

Disclaimer: Whatever posted here is purely my personal view. It is not an inducement to trade and not responsible for any losses. Tips and News might just be rumors in the market. I take no responsibility for any gains or losses as a result of reading my analyses, judgement and opinions. Trade with care and diligence please!

Hang Seng Tech Index closing 2.51% lower

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After 5 days of positive gains, HSTI has close negative for today, at -2.51%. 

Today's biggest winner is BYD where it went up by an impressive +5.016% when HSI and HSTI was really hammered primarily due to the news on US banning US transactions with TikTok and WeChat in 45 days time. Meituan also did a reversal for today, within its low at 208, it managed to close positive at 222.40, with an intraday gain of +6.92%!

With the headlines flashing WeChat and TikTok, we would have thought that Tencent would be the biggest loser for today. Tencent did at one point in time, dropped 10% and breaking the 500 mark, touching 499.4 before rebounding back up after lunch hour. Today's biggest loser is actually SMIC where it closed -8.702%.

Referring to my previous post, I believe the overselling in Tencent would create an opportunity for one to enter as the WeChat population in US is not that big and the US officials came out and say that it is only for WeChat and not its gaming channels. Though the risk of the gaming channels may be the next target by the US government, there are some potential swing in price action for Tencent for the next few trading days. What would China do in this hostile situation? 

Top gainers

Top losers

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Disclaimer: Whatever posted here is purely my personal view. It is not an inducement to trade and not responsible for any losses. Tips and News might just be rumors in the market. I take no responsibility for any gains or losses as a result of reading my analyses, judgement and opinions. Trade with care and diligence please!

News Flash: Trump Inks Order to Ban US Firms' Deal with Bytedance, Tencent

The US Government has announced last night on the ban on transactions of US companies with TikTok's parent ByteDance and WeChat's parent TENCENT that will be effective in 45 days. 

This will likely push ByteDance to hasten the sales of their US operations as if they do not move ahead with this move, they may land up in a situation where they are not even allowed to operate anymore if the US government bans the use of TikTok. 

Source: AAStocks

In the case of WeChat, it seems that WeChat does not hold a very big market base in US based on the website, statista.com. Based on the stats as of September 2019, the number of active users are only around 1.48 million although the total number of users may be higher than this. As I am unable to find any statistics for 2020, assume with a higher penetration percentage of 20%, that will indicate a total number of active users of around 1.8 million. I would think that the impact on WeChat may not be significant to Tencent but more on disruption of services from the existing users in US. 

However, the other impact for Tencent which is not yet known is on the mobile gaming side of things. I believe this plays a big part in Tencent's growth and if the US government continues to take this anti China approach, gaming sector from Tencent may be hurted badly as a result. 

 
Find more statistics at Statista  

Disclaimer: Whatever posted here is purely my personal view. It is not an inducement to trade and not responsible for any losses. Tips and News might just be rumors in the market. I take no responsibility for any gains or losses as a result of reading my analyses, judgement and opinions. Trade with care and diligence please!

Hang Seng Tech Index closing 0.39% higher

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Hang Seng Tech Index was down almost the entire day before reversing into positive territory towards the end of the trading session. Eventually it close +0.39% higher for the day and with XD INC as its best performer, showing an impressive gain of +11.639% for today. If you noticed, the smaller cap companies are making big moves over the past few days while the large caps are generally either flat or showing gains of 1-2%.  

The latest news from US with regards to banning more apps like WeChat did not help the HSTI stocks with Tencent going as low as 543.50 (-3.11%) during the day before closing at 555.50 (-0.98%). I would expect more volatility to come with the US China technology war and China may start to target US companies in retaliation. 

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Disclaimer: Whatever posted here is purely my personal view. It is not an inducement to trade and not responsible for any losses. Tips and News might just be rumors in the market. I take no responsibility for any gains or losses as a result of reading my analyses, judgement and opinions. Trade with care and diligence please!

Hang Seng Tech Index up 1.49%

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Up 3 days in a row for this week, the HSTI is maintaining its upward momentum pretty well with Nasdaq in the green last night too. Also to take note for today, the top performer is WEIMOB INC which went up more than 10% and followed by BYD which has an impressive gain of +8.219%.

The bigger constituents for HSTI did a pretty good move today with Tencent up by +2%, Alibaba up by +0.788%, Xiaomi up by +0.516% and Meituan up just a fraction by +0.183% considering it did a big up move just yesterday. 

Only 10 losers for the HSTI for today which again are the smaller constituent stocks apart from Alibaba Health. 

Courtesy of AAStocks

Disclaimer: Whatever posted here is purely my personal view. It is not an inducement to trade and not responsible for any losses. Tips and News might just be rumors in the market. I take no responsibility for any gains or losses as a result of reading my analyses, judgement and opinions. Trade with care and diligence please!

Hang Seng Tech Index closing at +1.98% higher

Courtesy of AAStocks

Following last night's positive gain in Nasdaq, HSTI has again closed positive for today with a gain of 144.14 points (+1.98%). 

Looking at the top performers for today, HENGTEN was the big winner with a big up move of +15.546% and following that is MEITUAN at +8.674%. There were 7 stocks that were in the red for today with SMIC dropping -2.556%. The overall sentiment for HSTI still looks positive and we are still waiting to see when the ETF fund will be created. 

Courtesy of AAStocks

While Tencent and Sunny Optical are included in the benchmark Hang Seng Index, Alibaba, Meituan and Xiaomi, are not, which means most ETFs that track the main index are yet to cover these behemoths.

Source: https://www.scmp.com/business/banking-finance/article/3094735/fund-managers-expect-etfs-tracking-hang-seng-tech-index

Disclaimer: Whatever posted here is purely my personal view. It is not an inducement to trade and not responsible for any losses. Tips and News might just be rumors in the market. I take no responsibility for any gains or losses as a result of reading my analyses, judgement and opinions. Trade with care and diligence please!

Market Notes: Lost Decade in Singapore Straits Times Index (STI)

If you have noticed, I don't really post much of the Singapore companies that are listed in the Singapore Stock Exchange (SGX). 

If we compare the charts of STI against HSI and S&P 500, we will notice that STI has been really under water and with this pandemic, it is almost like a lost decade with no real economic move for Singapore blue chips in particular. 

STI performance for past 13 years since GFC (2007 - 2020)

With its peak during 2007 at 3837 and crashing through the floor during 2008-2009, it has never managed to break its highs and its last highest point was at 3624 during May 2018 before starting the downtrend. It is good to note that STI has always been a very sensitive barometer against the global economy as Singapore is always heavy in global trade. 

However in recent years, STI has failed to lure any big Tech firms to be listed in Singapore resulting in the 3 local banks forming a big part of STI.  

HSI performance for the past 13 years since GFC (2007-2020)

Looking at the performance of Hang Seng Index for the past 13 years as well, it exceed its 2007 highs at 31,897 during Jan 2018 at 33,484 before it came tumbling down. You may notice a trend that STI and HSI both started the downtrend in 2018 and it was the year where the trade war started.  

However coming back to the original point, HSI was poised to perform pretty well if not for the trade war and the Hong Kong protest that consumed the city. Now with the new Hang Seng Tech Index in play, we can see that Hong Kong is drawing lots of big Chinese tech companies to list in HSI and also in Shanghai Stock Exchange (SSE) which they are able to avoid scrutiny from the US government. 

S&P 500 performance for the past 13 years since GFC (2007-2020)

Needless to say, S&P 500 has almost increased up to 400% since its low in Mar 2009. This is fueled by limitless money printing from the Feds since then and markets have never looked back. We will notice that the dip started in Oct 2018 and primarily due to the trade war between US and China, Fed increasing its interest rate since 2009 and also tightening their monetary policies. 

Liquidity has always been the game changer here which is likely the main reason why we did not see a total market collapse in Feb/Mar 2020 when the Fed announced QE again with unlimited printing. 

I will cover more about what makes up the STI and some of the blue chips that people may have invested but would likely be in the red over the past 10 years. 

Disclaimer: Whatever posted here is purely my personal view. It is not an inducement to trade and not responsible for any losses. Tips and News might just be rumors in the market. I take no responsibility for any gains or losses as a result of reading my analyses, judgement and opinions. Trade with care and diligence please!

Hang Seng Tech Index closing 1.92% higher

Courtesy of AAStocks

Hang Seng Tech index since its debut has been rising steadily throughout but as mentioned in my previous post, it has been the smaller constituent companies that are pushing the index up. 

Looking at the top 5 again, we see MAOYAN and BYD taking the charge:

Courtesy of AAStocks

While the larger constituent stocks in the Hang Seng Tech Index (Alibaba, Tencent, Xiaomi) were flat or slightly positive with the exception of Meituan that moved up by 4.53%. There seem to be some rotation in play with the 30 companies that form the Hang Seng Tech Index but this is the main index that is positive as compared to HSI and HSCEI which were both down by -0.56% and -0.07% respectively. HSCEI has been defending the 10,000 mark and if it succeed, it will likely pose a good upmove in the short run. 

Disclaimer: Whatever posted here is purely my personal view. It is not an inducement to trade and not responsible for any losses. Tips and News might just be rumors in the market. I take no responsibility for any gains or losses as a result of reading my analyses, judgement and opinions. Trade with care and diligence please!

Hang Seng Tech Index up by 0.77%

Quick updates for today: 

Hang Seng Tech Index was up by 0.77% today primarily held up by SMIC (0981.HK), KOOLEARN (1797.HK), AAC TECH (2018.HK), FIT HON TENG (6088.HK) and BYD (0285.HK) which were all up more than 3% and overall turnover of 30.02 billion. 

The big names like Tencent (0700.HK), Xiaomi (1810.HK), Alibaba (9988.HK), Meituan (3690.HK) were mainly flat or down. It seems like there's some rotational play in the HSIT constituent stocks and we will continue to monitor when the ETF tracking fund will be up and running for HSI Tech, similar to HSI ETF and HSCEI ETF. 

It is important from Hong Kong/China's perspective to ensure that this index remains healthy and not get hammered down since its launch early this week to be comparable against the US Nasdaq.  

Below courtesy from Aastocks.com

Disclaimer: Whatever posted here is purely my personal view. It is not an inducement to trade and not responsible for any losses. Tips and News might just be rumors in the market. I take no responsibility for any gains or losses as a result of reading my analyses, judgement and opinions. Trade with care and diligence please!

China’s Tencent is now bigger than Facebook after adding around $200 billion to its value this year

Latest news from CNBC:

Tencent’s market capitalization has surpassed Facebook’s following a huge rally in the Chinese firm’s shares this year.

The gaming and social media giant’s market cap stood at 5.15 trillion Hong Kong dollars ($664.50 billion) at around 3:07 p.m. Singapore time. Meanwhile, Facebook’s market cap totaled $656.15 billion as of Tuesday’s close.

Tencent shares have rallied around 43% year-to-date, compared to just over 12% for Facebook. That has added around 1.53 trillion Hong Kong dollars ($197.74 billion) onto Tencent’s value. 

Source: CNBC

Interesting to see how it goes from here as alot of the big banks has Tencent's target price above 600.


Disclaimer: Whatever posted here is purely my personal view. It is not an inducement to trade and not responsible for any losses. Tips and News might just be rumors in the market. I take no responsibility for any gains or losses as a result of reading my analyses, judgement and opinions. Trade with care and diligence please!

Hang Seng Tech Index closing positive for today

Today the Hang Seng Tech Index closed positive however looking at the constituent stocks, the top 4 companies didn't do so well and it was really held up by Hua Hong Semi (1347.HK) +13.3% and SMIC (0981.HK) +8.74%.

If the heavy weighted constituent companies are not doing well despite the Index being up, we will need to be cautious to see where the market is trending.

Below is courtesy from AAstocks:

Disclaimer: Whatever posted here is purely my personal view. It is not an inducement to trade and not responsible for any losses. Tips and News might just be rumors in the market. I take no responsibility for any gains or losses as a result of reading my analyses, judgement and opinions. Trade with care and diligence please!

Hang Seng Tech Index

In case if anyone is interested in the list of companies that form the index below is the link and it shows the Index as well:

http://www.aastocks.com/en/stocks/market/index/hk-index-con.aspx?index=HSTECH&t=1&hk=0&s=5&o=0

Half the day is gone and half of the constituent companies are down currently and US futures are also down as well. With the Big 4 tech going to the antitrust hearing this week, it will be interesting to see what the impact would be on Nasdaq and S&P 500 (the big 4 tech companies are part of S&P if you are not aware and the weightage is pretty big as well).


Disclaimer: Whatever posted here is purely my personal view. It is not an inducement to trade and not responsible for any losses. Tips and News might just be rumors in the market. I take no responsibility for any gains or losses as a result of reading my analyses, judgement and opinions. Trade with care and diligence please!

Xiaomi (1810.HK)

Being one of the Hang Seng Tech Index, its constituent weighting is at 8.11%, ranking at #4. 

Xiaomi Corporation is a Chinese electronics company founded in April 2010 and headquartered in Beijing. Xiaomi makes and invests in smartphones, mobile apps, laptops, bags, earphones, shoes, fitness bands, and many other products.

Looking at the daily chart, it is definitely not pretty and it seems to be forming a lower high and lower low. However, looking at the weekly chart, if it holds within the long green bar that was formed on week of 6 July, it would likely be positive and poise for a potential move. 

It seems more volatile compared to Tencent and Alibaba as it has a big presence in India and due to the border tensions, it may get more price volatility in the short term until the governments sort out their differences. 

*I currently hold Xiaomi shares. 

1810.HK Daily

1810.HK Weekly

Disclaimer: Whatever posted here is purely my personal view. It is not an inducement to trade and not responsible for any losses. Tips and News might just be rumors in the market. I take no responsibility for any gains or losses as a result of reading my analyses, judgement and opinions. Trade with care and diligence please!

Selling in Nasdaq and Russell

Markets were down generally during US hours and we will see that Tech is broadly down again yesterday with the Big Tech (Apple, Google, Microsoft, Amazon) and the crown jewel of US, Tesla.

With Nasdaq down by 1.27%, it is expected the Hang Seng Tech Index will likely take a hit as well today.

However, if you look at the other sectors, Financials were not that bad with most of the Big Banks getting a small gain with the exception of Morgan Stanley. Energy sector however is getting a hit with most of the big oil companies like Exxon, BP, Chervon falling around 1-2%.

It is likely to see volatility this week as earning season starts so watch out!



Disclaimer: Whatever posted here is purely my personal view. It is not an inducement to trade and not responsible for any losses. Tips and News might just be rumors in the market. I take no responsibility for any gains or losses as a result of reading my analyses, judgement and opinions. Trade with care and diligence please!

Tencent Holdings (0700.HK)

Key summary on TCH (0700.HK) -

As part of the new Hang Seng Tech Index, Tencent makes up 8.52% of the new Tech Index and Tencent Holdings operates through the following segments: Value-Added Services, FinTech and Business Services, Online Advertising, and Others. The Value-added Services segment involves online and mobile games, community value-added services, and applications across various Internet and mobile platforms. The FinTech and Business Services segment provides fintech and cloud services, which include commissions from payment, wealth management and other services. The Online Advertising segment represents display based and performance based advertisements. The Other segment consists of trademark licensing, software development services, software sales, and other services.

Looking at the daily chart, it looks like it is consolidating with the lower range at $516 and currently just above its 20MA. Looking a the weekly chart, although it has made its parabolic move up to the highs of $565, we are seeing some form of consolidation within the top range. If this continues to consolidate, it might see a higher price movement depending on the broader market trend especially when Nasdaq moves. 

One thing to take note though is the tension between India and China even though Mainstream media has always been covering the tension between US and China. India is also a big market for some of the big C-Tech (i call it China Tech) firms like Alibaba, Tencent, Xiaomi and the border tensions has recently made the India Government take some drastic moves against the chinese companies. We will need to continue to monitor the situation to see how things unfold. 

*I currently hold Tencent shares

Details of Tencent via AAStocks: http://www.aastocks.com/en/stocks/quote/detail-quote.aspx?symbol=00700

Tencent Daily

Tencent Weekly 

Analyst target price (courtesy of Tiger Brokers application)

Hong Kong to launch Hang Seng Tech Index. 

This is mirroring the US Nasdaq where the top 30 tech stocks in HSI will be part of this Hang Seng Tech Index.

This will be launched from 27 July onwards and it will be interesting to see how this will mirror the US Nasdaq movements.

Some of the most valuable Chinese Internet companies as its constituents includes Alibaba Group Holding (9988.HK), Tencent Holdings (0700.HK), Meituan Dianping (3690.HK) and Xiaomi (1810.HK).

More details in the link below: http://www.aastocks.com/en/stocks/news/aafn-con/NOW.1029097/popular-news