Hong Kong: HANG SENG INDEX (.HSI) weighed down by President Donald Trump signing legislation supporting Hong Kong protesters

Hong Kong: HANG SENG INDEX (.HSI) weighed down by President Donald Trump signing legislation supporting Hong Kong protesters

Hong Kong: HANG SENG INDEX (.HSI) weighed down by President Donald Trump signing legislation supporting Hong Kong protesters

Hong Kong shares edged lower on Thursday after U.S. President Donald Trump enacted a law that seeks to re-examine Hong Kong’s autonomy on an annual basis.

The Hang Seng Index lost 0.2% to 26,893.73 after falling as much as 0.7% in early trade. Among heavyweights, China Mobile fell 1.6%, while Ping An Insurance Group slipped 0.9%.

Sun Hung Kai Properties edged 0.2% lower. The property developer on Wednesday said its units have won the tender for a land parcel in Hong Kong’s Kowloon area at a premium of 42.23 billion Hong Kong dollars ($5.39 billion).

Trump on Wednesday signed the Hong Kong Human Rights & Democracy Act, a move Beijing has been opposed to amid violent anti-government protests in the former British colony. The legislation requires the U.S. to conduct an annual review of Hong Kong’s special trading status on the basis of whether the city still has sufficient autonomy.

There have been concerns that the bill being enacted could put a spoke in trade talks between the U.S. and China. Investors are currently waiting to see when the U.S. and China will sign the first phase of a trade agreement, which both countries have indicated is imminent.

“It will add some sort of uncertainty. There could be some sort of delay,” said Ronald Wan, chief executive at Partners Capital International. “But it won’t really derail the deal between the two countries. China has expressed many times that they want to reach a deal.”

China’s foreign ministry on Thursday reiterated that it will take “counter measures,” calling the legislation a serious interference in Chinese affairs.

“Now the wait begins to see just how strong the pledged Chinese response will be, and how much it impacts on the ‘Final Countdown’ phase one trade deal,” Michael Every, senior strategist for Asia Pacific at Rabobank, wrote in a note.

In the mainland, the Shanghai Composite Index fell 0.5%. The Hang Seng China Enterprises Index of mainland companies listed in Hong Kong declined 0.6%.

Alibaba Group Holding rose 5.6%, its third day of gains since its debut. The Hang Seng Indexes Company on Wednesday said the stock meets the Fast Entry Rule for the Hang Seng Composite Index, and will be added to the gauge effective Dec. 9.

Chinese smartphone maker Xiaomi climbed 1.8% after reporting a 1.1% increase in third-quarter net profit and a 5.5% higher revenue.

China First Capital Group added 3.3% as trading resumed after a halt. The company on Thursday said 37.35 million shares held by substantial shareholder Wealth Max Holdings were sold by a stock broker to meet margin calls triggered by a sharp fall in the stock. China First Capital’s shares plunged 78% on Wednesday before trading was suspended.

China Agri-Industries Holdings surged 29% to HK$4.09 after saying the Hong Kong unit of China’s state-owned COFCO has offered to privatize it by paying HK$8.9 billion in cash, or HK$4.25 per share, for the 39.25% stake it doesn’t already own.

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 27,634.39.

The projected lower bound is: 26,157.21.

The projected closing price is: 26,895.80.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 25 white candles and 25 black candles.

Momentum Indicators

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 64.3191. This is not an overbought or oversold reading. The last signal was a buy 7 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 51.04. 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 14 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 36. This is not a topping or bottoming area. The last signal was a buy 8 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 buy 0 period(s) ago.

HANG SENG INDEX closed down -60.270 at 26,893.730. Volume was 39% below average (neutral) and Bollinger Bands were 15% narrower than normal.

Rex Takasugi – TD Profile

Open     High      Low     Close     Volume___
26,763.63126,991.80126,763.63126,893.730 998,841,920
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 26,780.78 26,640.62 27,703.14
Volatility: 18 18 19
Volume: 1,434,018,048 1,506,033,536 1,754,513,792

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

HANG SENG INDEX is currently 2.9% below its 200-period moving average and is in an downward trend. Volatility is high 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 bearish on .HSI and have had this outlook for the last 5 periods.

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