UBS raises Hang Seng Index target to 22,100 points for this year
UBS is raising its target for the Hang Seng Index by 7% to 22,100 points this year, believing that the market has more upside potential, mainly due to interest rate cuts, a weaker US dollar, and policy stimulus. UBS maintains a barbell strategy, preferring defensive high-yield stocks and travel-related stocks, while slightly raising MSCI Hong Kong by 1% to 9,600. Recommended stocks include PCCW, Cathay Pacific, BOC Aviation, Henderson Land, Sands China, Galaxy Entertainment, and AIA
Hong Kong stocks continue to rise sharply. UBS has raised its Hang Seng Index target for this year by 7% to 22,100 points. They believe that with falling interest rates, a weakening US dollar, China's policy stimulus exceeding expectations, and profit forecasts being revised upwards, there is still more upside potential in the market. In terms of stock selection, the bank maintains a barbell approach, preferring defensive high-yield stocks and tourism-related stocks with higher beta coefficients compared to the mainland macro environment. Additionally, UBS has slightly raised the MSCI Hong Kong (USD) by 1% to 9,600.
UBS's recommended list includes PCCW (008), CATHAY PAC AIR (293), BOC Aviation (2588), Henderson Land (012), Sands China (1928), Galaxy Entertainment (0027), and AIA (1299)
