Hong Kong: HANG SENG INDEX (.HSI) GDP growth slows down in the recession
Hong Kong stocks broke a two-day losing streak on Thursday, with bank and property stocks among the gainers after moves in the US and the city to lower interest rates.
The Hang Seng Index rose 0.9 per cent to finish at 26,906.72.
HSBC rose 0.5 per cent to HK$59.50 after announcing it would cut its rates to take pressure off of small businesses. Standard Chartered joined in that move, following rate lowering by the US Federal Reserve and the Hong Kong Monetary Authority, and rose 0.9 per cent to HK$71.90.
The rate moves boosted shares of property developers.
Hang Lung Properties, one of the city’s largest builders of shopping centres, rose 0.5 per cent to HK$19.66. Sun Hung Kai Properties, the city’s largest listed developer by value, rose 2 per cent to HK$118.90.
“As Hong Kong’s GDP growth slows down in the recession, this [rate cut] will help the Hong Kong market,” said Kenny Tang, chief executive of Royston Securities. “The property sector will benefit the most. The government has already loosed the mortgage requirement, which will improve the property market.”
The need for business support was underscored Thursday as the city officially slipped into a technical recession, with economic growth shrinking 3.2 per cent in the third quarter amid the US-China trade war and protests.
In Hong Kong, AAC Technologies, which derives nearly half of its revenue from Apple, shot up 3.5 per cent to HK$51 after Apple reported better-than-expected results overnight.
PetroChina fell nearly 4 per cent to HK$3.85 after reporting its quarterly profit dropped 58 per cent.
Meituan Dianping, a ticketing-to-food delivery service provider in China, slipped 0.4 per cent to HK$93.65, while smartphone maker Xiaomi rose 1.3 per cent to HK$8.90.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 27,653.10.
The projected lower bound is: 26,187.35.
The projected closing price is: 26,920.22.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 21 white candles and 29 black candles for a net of 8 black candles.
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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 48.3115. This is not an overbought or oversold reading. The last signal was a sell 8 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 58.26. 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 buy 51 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 102.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 8 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 13 period(s) ago.
Rex Takasugi – TD Profile
HANG SENG INDEX closed up 239.010 at 26,906.721. Volume was 21% above average (neutral) and Bollinger Bands were 26% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 26,751.60 26,369.34 27,722.02
Volatility: 12 18 18
Volume: 1,445,582,336 1,630,369,920 1,783,752,064
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.
HANG SENG INDEX is currently 2.9% below 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 .HSI at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on .HSI and have had this outlook for the last 0 periods. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.
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