Market Insight | CKI Holdings rises by over 3%, Daiwa expects the remaining time of the year to highlight the hedging value of Hong Kong utility stocks, Morgan Stanley's view turns positive

Most of the Hong Kong utility stocks rose. As of the time of publication, CKI Holdings rose by 3.10% to HKD 54.80; Power Assets rose by 3% to HKD 53.30; CLP Holdings rose by 1.85% to HKD 68.70; HK & CHINA GAS rose by 0.93% to HKD 6.48. Daiwa released a research report stating that the performance of Hong Kong and mainland utility stocks in the first half of the year was not surprising, but the overall industry seems to benefit from global recession risks and the reversal of interest rate differentials in the Asia-Pacific region. Daiwa expects that Hong Kong utility stocks will continue to outperform the broader market in the remaining time of the third quarter of 2024, as the risks of US and global economic recession emerge and the interest rate differentials in the Asia-Pacific region reverse. Hong Kong utility stocks will become a safe haven for investors. JP Morgan released a research report stating that market volatility, the expected rate cut by the Federal Reserve, and improved profit prospects have led the bank to have a more positive view on Hong Kong utility stocks since June. CLP Holdings stated that if profits continue to improve, the company will consider raising dividends, with HK & CHINA GAS also expressing the same possibility. Therefore, the bank maintains a positive view on utility stocks