CLP Holdings Limited (HKG:0002) Agreements With Government

CLP Holdings Limited (HKG:0002) Agreements With Government

CLP Holdings Limited (HKG:0002) Agreements With Government

  • The power utilities reached an agreement with the government in which the cap on return will be cut to 8 per cent in 2019
  • CLP Holdings and HK Electric Investments, two income-generating stocks popular among the city’s retirees, are expected by analysts to be able to pay investors dividend yields of 3.7 to 4.6 per cent at current share prices under the new regulatory regime, despite a revised lower return from 2019.
  • The government said late last month that it had reached an agreement with the city’s two duopoly power utilities over the extension of the so-called “scheme of control [SoC]” regime, under which the cap on return on net fixed assets will be slashed to 8 per cent in 2019 from the current 9.99 per cent.

Overall, the bias in prices is: Upwards.

Short term: Prices are stalling.

Intermediate term: Prices are trending.

The projected upper bound is: 85.91.

The projected lower bound is: 82.07.

The projected closing price is: 83.99.

CLP HOLDINGS closed up 0.100 at 83.850. Volume was 23% below average (neutral) and Bollinger Bands were 23% narrower than normal.

Open       High         Low        Close        Volume
83.200    84.200    83.150    83.850    2,031,855

Technical Outlook
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period       50-period       200-period
Close:                       83.71               81.74               78.35
Volatility:                13                     15                    16
Volume:                   2,133,868      2,804,755      2,743,902

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary
CLP HOLDINGS is currently 7.0% above its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of 0002.HK at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on 0002.HK and have had this outlook for the last 18 periods.

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 79.8319. This is not an overbought or oversold reading. The last signal was a sell 0 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 58.00. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 30 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 32. This is not a topping or bottoming area. The last signal was a sell 1 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 5 period(s) ago.

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John Heffernan

John Heffernan is a Junior Analyst at HEFFX. John is studying Economics and is a contributor on equities at Live Trading News.

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