June 26 HK WRAP HSI -232pts on light T/O and Shorts dropped to 14.7%
HSI -232pts (-0.9%) 24,550 HSCEI -84pts (-0.8%) 9,853 T/O HK$96.11bn (-16.7%)
EUROPE opened higher despite the US bank stress test results, rising covid cases and the IMF warning.
US Futures back to flat having been -175pts earlier after the US Bank stress tests and news of share buyback being banned and dividend payments at current levels. Also poor results from Nike!
HYGEIA HEALTH (6078.HK), to be listed next Monday, opened at $22 in
gray market, up 19% against the listing price of $18.5, and last traded at $23.55, up 27% against the listing price, on volume of 560,000 shares, PhillipMart data showed.
KANGJI MEDICAL (9997.HK), to be listed next Monday, opened at $24 in gray market, up about 73% against the listing price of $13.88, and last traded at $24.4, up nearly 76% against the listing price, on volume of 3.12 million shares, PhillipMart data showed.
Centa-City Leading Index (CCL) last printed at 181.12, a 30-week high, up 0.21% weekly.
Market and Pre Market News at bottom of page.
Short Selling HSI Friday 14.7% vs 17.5% Wednesday
Top Shorts Hang Seng Bank (11) 44%, MTR (66 HK) 34%, Wharf REIC (1997) 31%, Mengniu Dairy (2319) 27%, China Shenhua (1088) 245, Shenzhou Int (2313) 24%, Country Garden (2007) 24%.
*PETROCHEMS WEAK Despite a rally in oil overnight, WTI +2.9% BRENT +3% after Russia slashed its crude exports, but sector traded under pressure on concern of slowing demand in China as the nation's economic growth remained depressed. CNOOC (883 HK -1.3%) CH OILFIELD (2883 HK -2.6%) PETROCHINA (857 HK -1.9%) SINOPEC (386 HK -1.2%).
*TELCOS WEAK After US disclosed a list of firms allegedly backed by the Chinese military, opening up the businesses to possible sanctions. CH TEL (728 HK -3.5%) CH MOBILE (941 HK -2.6%) CH UNICOM (762 HK -2.5%).
*E-COMMERCE WEAK consolidation after recent gains. TENCENT (700 HK -1.2%) despite it and Pokemon announcing a jointly-developed new game for smartphones and Nintendo's Switch console. Pokemon Unite, created partly by Tencent's Timi Studios, allows players to compete in five-versus-five battles, using the powers and attacks of Pokemon creatures, pending release date.
ALIBABA (9988 HK -3%) News that Softbank’s Son left the board was by mutual agreement as Jack Ma left Softbank’s board. Softbank is still entitled to nominate a member to Alibaba’s board
MEITUAN (3690 HK -2.6%) JD (9618 HK -0.3%).
PA GOOD DOC (1833 HK +3.6%) Haitong Sec. initiated with an "outperform".
*TECH & COMPONENTS MIXED as APPLE closed 14 stores in Florida due to rising covid-19 cases, bringing the number shut to 32 after recently reopening
AAC (2018 HK -1.3%) TONGA (698 HK -3%) TRULY (732 HK -4.7%)
SUNNY (2382 HK +5.4%) jumped after a broker's upgrade.
Selective semiconductor names continued to see support on STAR Board listing speculation. HUA HONG (1347 HK +5.7%) SMIC (981 HK +3.3%).
COWELL (1415 HK +5.3%) Annoucned +VE profit alert, expects a significant improvement in the group's profit for the six months ending 30 Jun 2020 vs the same period in 2019.
*HK PROPERTY WEAK concerns over impact of the national security law on HK is raising concerns on the city's autonomy for some investors. Plus HSBC raised its Hibor mortgage rate and reduced the cash back offer on concerns for the outlook for Hong Kong Property BUT subscriptions for the first batch of Sea To Sky flats ends today and were 25.3 times oversubscribed as of yesterday, with more than 11,700 checks submitted. Which shows the strength of local resident demand and some mainland Chinese demand. CK ASSET (1113 HK -0.7%) will launch sales of another batch of 462 units at Sea To Sky tomorrow, at an average of HK$16,275 psf.
LKS Foundation bought 1.33m CK ASSET (1113 HK) shares June 18-23, avg price from HK$46.9328-HK$47.2822/shr.
HENDERSON (12 HK -1.1%) SHKP (16 HK -0.4%).
*CHINA PROPERTY MIXED focus on developers that have spin-off plans.
KWG's (1813 +11%) property management arm KWG Living has filed an IPO application in the HKEX to raise more than US$200m.
AGILE GROUP (3383 HK +4%) plans to spin off A-City Group, which provides ecological landscaping and interior decoration in HK.
BUT POLY PROP (119 HK -2%) despite expecting to record a 75%-85% YoY decrease in interim net profit ending 30 June 2020.
*SPORTSWEAR MAKERS WEAK after NIKE reported its Q4 loss per share of 51 cents after US markets closed which was substantially worse than the consensus for profit of 10 cents. The company said results "were significantly impacted" by store closures, and shipments to wholesalers fell by half.
XTEP (1368 HK -1.9%) LI NING (2331 HK -1.2%) ANTA SPORTS (2020 HK -1.2%) POU SHENG (3813 HK -1.7%). I think you will see more US companies reporting significantly lower than expected in the forthcoming earnings -VE for sentiment
*HK RETAILERS WEAK as Victoria's Secret shut HK flagship store yesterday, seven years ahead of its 10-year lease’s expiration in August 2027. It may cost the brand about HK$600m to terminate the lease early. ALSO -VE implications for HK Property Investors like Hysan (14 HK +0.8%) in my view.
CHOW TAI FOOK (1929 HK -1.3%) GIORDANO (709 HK -6.3%) I.T. (999 HK -2.5%) LIFESTYLE (1212 HK -2.7%).
* OTHER MOVERS:
TIANNENG POWER (819 HK +20.4%) renewed hopes for spinoff, after the company gave an update on the planned listing of its batteries operation on Shanghai’s Star Board.
TRAIN/RAILWAY companies CRRC (1766 HK -2.5%) and CH RAIL CONS (1186 HK -2.6%) on possible sanctions by the US for company’s controlled by the Chinese military.
CONNECT FLOWS (No flows with China on holiday resumes on Monday)
CHINA No data but confirmed 13 additional COVID-19 cases yesterday (25 June), including two imported cases (all in Shanghai) and 11 local infections (all in Beijing), National Health Commission reported.
HONG KONG Centre for Health Protection said there were 3 new local covid-19 cases today. It also announced earlier that there were 14 new cases yesterday. -VE for sentiment.
JAPAN Opened higher and traded slightly higher through the day. Tokyo Core CPI was in-line although CPI missed. Close +1.13%
S KOREA Markets opened higher but Kosdaq sold off initial and then worked its way back into the green but sold down to close +0.03% The Kospi initially sold down but not as much and then worked higher into lunch before trading sideways to close +1.1%
Taiwan Market closed
HYGEIA HEALTH (6078.HK), to be listed next Monday, was priced at $18.5, the upper limit of the offer price range $17-18.5. Roughly 607.56 times of over-subscription was recorded in the public offering. One-lot (200 shares) success rate was 8.8%.
KANGJI MEDICAL (9997.HK), to be listed next Monday, was priced at $13.88, the upper limit of the offer price range $12.36-13.88. 988.22 times of over-subscription was recorded in the public offering. One-lot (500 shares) success rate was 9% only.
XIAOMI-W (1810.HK) in response to Indian residents launching a boycott against Chinese goods as the border disputes between the two nations rendered their relationship in tension has subsequently put up "Made in India" banners outside its branches in India in attempt to counter the boycott China campaign, Indian press reported. I think it will be interesting to see if it’s the Chinese ownership or the place of manufacture that works. I suspect that its the ownership that matters as the Indian nationalist have been seeking to damage Chinese interests.
HK Government spokesman said yesterday that the Employment Support Scheme (ESS) received a total of 259,900 applications for the one-off lump-sum subsidy of $7,500 for self-employed persons (SEPs) during the application period. Of these, about 140,000 applications have not been approved due to ineligibility. The ESS Secretariat or the processing agent are sending notifications to these applicants.
TENCENT (700.HK) is set to acquire the content, technology and resources of iflix, a Kuala Lumpur-based streaming platform, to extend its reach into the region, Bloomberg citing insiders. The purchase does not cover iflix's debts
The US Senate unanimously approved the "Hong Kong Autonomy Act", which could sanction individuals or companies undermining the territory's autonomy. The bill will be submitted to the US House of Representatives for review and hence be signed into law by President Donald Trump. The act would require US Secretary of State Mike Pompeo to submit a report to the Congress 90 days within legislation and once a year in the future.
GOME RETAIL (493.HK) said regarding the increase in the price and trading volume of the shares of the Company on 24 June and media articles reported that Wong Kwong Yu, the controlling shareholder of the Company, has been released from prison; it noted from the information released by the Beijing High People’s Court on its official Wechat public account “Beijing Law Network” that the Beijing First Intermediate People’s Court has ruled to release Wong on parole, with the parole probation period from the date of parole to 16 February 2021.
NATIONAL ELEC H (213.HK) results for the year ended 31 March 2020. Net profit -45.5% yearly to $121 million with EPS of 12 cents. A final dividend of 3 cents was declared.
MONGOLIA ENERGY (276.HK) annual results ended March 2020. Revenue was $1.125 billion, +44.8% yearly. Net profit amounted to $1.442 billion, vs $44.425 million in loss in the previous year. EPS equaled $7.66. No final dividend was declared.
BEST MART 360 (2360.HK) FY results to 31 March 2020. Net profit -79.7% YoY to $12.1 million with EPS of 1.2 cents. No final dividend was declared, against a dividend of 6 cents a year ago.
GEELY AUTO (175.HK) announced a preliminary proposal for the possible issue of RMB Shares and listing on the Sci-Tech Board, involving not more than 1.731 billion RMB Shares.
CHUANG'S CHINA (298.HK) announced the results for the year ended 31 March 2020. The loss was $192 million vs the net profit of $168 million from a year ago. LPS was 8.19 cents. No final dividend was declared.