The Hang Seng Index rose 1.9% to 24,718.10 in Hong Kong trading on Friday (June 12), recording its biggest daily gain since June 2. This gain came after the index weakened 0.7% in the previous session, signaling a return of buying interest to the market after several days of pressure.
The gains were broad-based, with all sectors moving positively. Trading and industrial stocks were the main drivers, with 82 of the 93 stocks in the index closing higher and only 11 declining. This composition suggests the rebound was not driven by just one or two large stocks, but spread across the majority of the market.
HSBC Holdings was the largest contributor to the index’s rise, rising 3.1%. Meanwhile, Chow Tai Fook Jewellery Group recorded the largest gain, surging 15.2%. The rise in consumer and commercial stocks signals that investors are starting to seek opportunities again in previously depressed sectors.
Despite the strong rebound, the Hang Seng’s short-term outlook still requires careful reading. The index is still down 1% for the week, while it has weakened 0.3% for the quarter. Over the past 52 weeks, the Hang Seng has only gained 2.8%, far lagging behind the MSCI AC Asia Pacific Index, which has gained 36% over the same period.
In terms of valuation, the Hang Seng is trading at a price-to-earnings ratio of 12.6 times trailing earnings and approximately 11 times next year’s estimated earnings, with a dividend yield of 2.8%. 30-day volatility has risen to 18.00%, above the average for the past month of 17.08%, indicating the market is starting to move more actively. For now, the Hang Seng’s strengthening signals a technical recovery, but its continuation still depends on global sentiment, investor interest in Chinese stocks, and the stability of the consumption sector. (asd)
Source: Newsmaker.id