Connect with us

Hi, what are you looking for?

Investing

Hang Seng index analysis after HSBC earnings, Hong Kong GDP data

The Hang Seng index drifted upwards on Tuesday after the stronger-than-expected Hong Kong GDP data and HSBC earnings. The index rose slightly by about 35 basis points even as other Chinese indices like the Shanghai index and China A50.

HSBC earnings, Hong Kong GDP

The main Hang Seng news was the Hong Kong GDP numbers, which showed that the economy did well in the first quarter. According to the statistics agency, the economy expanded by 2.7% in the first three months of the year.

Analysts were expecting the data to show that the economy expanded by 0.5% in the quarter. It also compared with a 4.1% contraction during the same quarter last year when the city was in a Covid lockdown. Officials now expect the economy growing by between 3.5% and 5.5% this year.

The other important Hang Seng news was the latest Hang Seng Bank earnings. In a statement, the company said that its business did well in the first quarter as revenue jumped by 64% to $20.2 billion. On a constant currency, revenue jumped by 74%. Its common equity tier 1 capital ratio jumped to 14.7% while its profit before tax rose to $12.9 billion. The CEO said:

“We remain confident of achieving our return on average tangible equity target of at least 12% for 2023 onwards. Based on the current market consensus for global central bank rates, our net interest income expectations are unchanged from our full-year guidance.”

HSBC share price jumped by 2..67% in Hong Kong after the strong results. Other top movers in the index were ENN Energy, Baidu, Lenovo Group, and JD. Casino stocks like Galaxy Entertainment and Sands China have done well as Macau makes a comeback. This weekend, hundreds of thousands of Chinese tourists went to Macau for the Labour Day weekend.

Hang Seng index forecast

HSI chart by TradingView

The Hang Seng index has moved sideways in the past few weeks. It has remained slightly below the key resistance level at H$20,766, the highest point on April 17. The index is also a few points above the year-to-date low of H$18,815. It is oscillating at the 50-period moving average while the Relative Strength Index (RSI) has drifted upwards.

Therefore, the index will likely remain in this range ahead of the upcoming interest rate decision by the Federal Reserve. The key support and resistance points to watch will be at H$18,815 and H$20,765.

The post Hang Seng index analysis after HSBC earnings, Hong Kong GDP data appeared first on Invezz.

You May Also Like

Economy

BlockSpan ICO: Accelerating NFT Innovation with Confidence The BlockSpan ICO aims to revolutionize the NFT space. To achieve that goal, it will provide an...

Investing

ZIM Integrated (NYSE: ZIM) stock price has crashed hard after the company canceled its dividend as the shipping industry recoils. The shares plunged to...

Investing

IDS share price has suffered a big reversal in the past few days as demand for the stock drops. Shares of Royal Mail’s parent...

Investing

Rolls-Royce (LON: RR) share price has been dead money in the past few days as investors react to the company’s turnaround and recent financial...



Disclaimer: Frequencytraders.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


Copyright © 2024 Frequencytraders.com