【True Insight Hong Kong Stock Experts】Hong Kong stocks performed weakly, with the index falling below the bull-bear demarcation line, hitting a new low in recent months.

Hong Kong Stock Market Trends and Analysis

U.S. stocks fell significantly on Wednesday as corporate earnings disappointed the market, prompting investors to take profits at highs. All three major indices recorded notable declines at the close. The U.S. dollar fluctuated but remained stable, with the 10-year Treasury yield rising to 4.26%. Gold prices declined, and oil prices trended downward. Hong Kong ADRs were mostly lower, suggesting the market would open lower in early trading following the weak overseas performance. Mainland stocks fell yesterday, with the Shanghai Composite opening higher but closing down 0.5%. Trading volume in both Shanghai and Shenzhen markets further contracted. Hong Kong stocks remained weak, with the index falling below the bull-bear line and hitting a new low in recent months. Overall trading volume stayed subdued. Investors are concerned about the macroeconomic outlook in mainland China, and the market trend remains downward. The index is expected to test support at 17,000 points, with resistance at 17,800 points.

Industry News

$FAST RETAIL-DRS(06288.HK) Fast Retailing (06288.HK) reported a profit of 312.838 billion yen for the first three quarters, up 31.16% year-on-year. Revenue reached 2.37 trillion yen, a 10.4% increase year-on-year. Operating profit was 401.803 billion yen, up 21.55% year-on-year. The company did not declare a dividend for the third quarter but forecast a final dividend of 225 yen per share for the fiscal year ending in August, along with an interim dividend of 175 yen from the second quarter, totaling 400 yen for the full year. Fast Retailing raised its full-year earnings forecast, projecting a profit of 365 billion yen, up 14.05% from the previous forecast. Revenue forecasts were also raised by 1.32% to 3.07 trillion yen, and operating profit forecasts were raised by 5.56% to 475 billion yen. Fast Retailing's brands remain popular among consumers due to their high cost-performance ratio, and the company's future performance outlook remains optimistic.

Independent Stock Analyst Joseph Kwok, CFA

Date: Thursday, July 25, 2024

(The author and related parties do not hold the aforementioned stocks)