00135 Overview

Market Performance: The HSI fell by 182 points (0.7%) to close at 25,716, with total market turnover at $242.18 billion. The HSCEI and HSTECH also experienced slight declines.

Stock Highlights: KUNLUN ENERGY and CNOOC saw gains of 2.4% and 3.7% respectively, while coal stocks YANKUANG ENERGY and CHINA COAL surged by 8.3% and 4.9%.

Sector Movements: New energy stocks like DATANG RENEW and GOLDWIND rose by 8.2% and 7.2%, while traditional power utility DATANG POWER increased by 5.1%.

Tech Sector Trends: Major tech stocks like TENCENT and BABA-W declined, with TENCENT dropping 0.996%. In contrast, JD-SW gained 0.8%, while AI stocks faced significant losses, with KNOWLEDGE ATLAS plunging 8.9%.

Market Performance: The HSI fell by 1.4% to close at 25,408, with total market turnover reaching $392.33 billion. The HSCEI and HSTECH also experienced declines of 0.5% and 0.12%, respectively.

Oil and Energy Stocks: PETROCHINA and CNOOC saw increases of 2.3% and 3.3%, while KUNLUN ENERGY and SINOPEC CORP dropped by 3.9% and 4.4%. SHANDONG MOLONG surged by 25%, indicating volatility in the energy sector.

Commodities and Transportation Stocks: CHI SILVER GP and ZIJIN MINING fell by 7% and 2.8%, while SD GOLD rose by 3.7%. COSCO SHIP ENGY and Cathay Pacific Air experienced significant declines of 8.5% and 5.1%, respectively.

AI and Cloud Stocks Surge: AI stocks like KNOWLEDGE ATLAS and INSILICO rose by 8.1% and 7.1%, driven by the OpenClaw craze, while cloud service providers KINGSOFT CLOUD and GDS-SW increased by 13.7% and 5.9%.

Oil Prices Surge: Production cuts in several Middle Eastern countries have driven oil prices above USD 110 per barrel, negatively impacting global stock markets, including a significant drop in Hong Kong's Hang Seng Index (HSI).

Stock Market Declines: The HSI fell 2.6% to 25,101 points, with notable declines in various sectors, including energy, financials, and airlines, as inflation concerns and short selling pressures weighed heavily on market performance.

Energy Sector Movements: While major oil companies like PetroChina and CNOOC saw gains, other energy and commodity stocks, including Kunlun Energy and Sinopec, experienced declines, reflecting mixed performance within the sector.

Tech and Financial Stocks Struggle: Major tech companies like Tencent and JD-SW faced losses, while financial institutions such as HSBC and AIA also saw significant declines, indicating broader market challenges amid rising inflation concerns.

Impact of Middle East Situation: JPMorgan reports that disruptions in the Middle East could affect over 20% of the global liquefied natural gas (LNG) supply, leading to increased price volatility and challenging the expectation of a supply surplus into the 2030s.

Short-term Effects on China: The short-term impact on China's gas utilities is expected to be limited, as spot LNG constitutes only about 10% of their total gas resources, which mitigates immediate procurement cost increases.

Cautious Outlook on Gas Sector: If oil and gas prices remain high, procurement costs for pipeline gas and LNG may rise, potentially affecting industrial gas demand, prompting JPMorgan to maintain a cautious stance on the gas sector.

Preferred Stocks: JPMorgan favors KUNLUN ENERGY for its limited exposure to spot LNG risks and has set a target price of HKD9, while also rating ENN ENERGY as Overweight with a target price of HKD72.5 due to its hedging capabilities against rising spot LNG prices.

Market Overview: The US-Iran war escalation negatively impacted global stock markets, with the Hong Kong stock market closing lower; the HSI fell by 1.1% to 25,768 points.

Gas and Oil Stocks Performance: KUNLUN ENERGY rose by 1.7%, while SINOPEC CORP dropped by 2.7%. PETROCHINA and CNOOC saw significant gains of 5% and 3.2%, respectively.

Decline in Gold and Lithium Stocks: Gold and silver stocks experienced substantial losses, with companies like SD GOLD and ZHAOJIN MINING falling between 5-6.3%. Lithium stocks also plummeted, with TIANQI LITHIUM and GANFENGLITHIUM down by 8.1% and 10.9%.

Tech Sector Movements: Major tech stocks like TENCENT and BABA-W saw slight declines, while NTES-S gained 1.4%, potentially benefiting from its inclusion in the Southbound Stock Connect.

Market Performance: The HSI fell 74 points (0.3%) to 25,985, while the HSCEI and HSTECH also experienced declines, with total half-day turnover reaching HKD187.565 billion.

Energy Stocks Movement: KUNLUN ENERGY saw a 3.2% increase, while SINOPEC CORP dipped 1.8%. In contrast, PETROCHINA and CNOOC rallied by 4% and 2.3%, respectively.

Tech Sector Trends: Major tech stocks like TENCENT and BABA-W saw slight gains, while KUAISHOU-W and MEITUAN-W experienced minor declines.

Automotive Sector Decline: BYD COMPANY, XIAOMI-W, and other automotive stocks faced significant losses, with declines ranging from 2.2% to 5.5%.