On Thursday (1st), Hang Seng Index closed at 17304, down 39 points or 0.23%. The market turnover was 94 billion Hong Kong dollars for the whole day. The national index fell 0.34% to 6086; the science index plunged 1.1% to 3476. On the blue-chips side, there was concern that the Fed's rate cuts would narrow the dividend spread of bank stocks. HSBC Holdings (00005) fell 2.4%; Henderson Land (00011) fell 3.7%; China National Petroleum (00881) plugged 6.9%, which was the tail-ender blue-chip; interest rate futures showed that the Fed has a good chance of cutting interest rates three times this year, and funds flow into high-yield stocks. Power Assets (00006) rose 5% and was the best-performing blue-chip; CK Infrastructure (01038) rose 2.8%;
On Thursday (1st), the Dow Jones Industrial Average closed at 40347, down 494 points or 1.21%. The Standard & Poor's Index fell 1.37% to 5446 points; the Nasdaq fell 2.3% to 17194 points. The Golden Dragon Index, which reflects the performance of Chinese concept stocks, fell 3.35%. European stocks fell across the board, with the UK, France and Germany's stocks falling 1.01%, 2.14% and 2.3% respectively. Among the heavyweight stocks, Nvidia's stock price had surged by 2.7%, but it ultimately reversed and fell 6.7% at the close; the stock had jumped nearly 13% on Wednesday, and the market cap surged by 32.9 billion US dollars, setting a record high for a single-day increase in the US stock market and leading to a near-12 billion US dollar surge in the wealth of the company's helmsman, Huang Renxun. Asia-Pacific stock markets were mixed this morning (2nd), with the Nikkei 225 index currently at 36198 points, down 1927 points or 5%. The benchmark KOSPI index is currently at 2709 points, down 68 points or 2.47%. Hong Kong stocks continue to fluctuate and may encounter short-term resistance at the 250-day moving average.
Market Focus: Zijin Mining Group (02899)
The tense situation in the Middle East and the Fed's signal to cut interest rates have pushed the spot gold price to a new record high of 2473 US dollars/ounce, exceeding the previous high of 2467.80 US dollars/ounce set on July 16th. Zijin Mining Group (2899) delivered a pleasant earnings announcement, with the group expecting a net income of about 14.55 billion to 15.45 billion yuan attributable to shareholders of the listed company in the first half of 2024, a year-on-year increase of about 41% to 50%. After deducting non-recurring gains and losses, net profit is expected to reach RMB 14.85 billion to RMB 15.75 billion, a year-on-year increase of about 54% to 63%. The group has made significant breakthroughs in exploration and storage. The total newly recorded copper metal resources of the Tibet Julong Copper Mine and the Heilongjiang Tongshan Copper Mine under the Group amounted to 18.377 million tons, and the newly recorded copper metal reserves amounted to 5.777 million tons, accounting for about 14.2% of China's copper reserves at the end of 2022. It is believed that the group has laid a solid foundation for sustainable development by increasing reserves through independent geological exploration, leading to continuous growth in market share.
Target $18.2, stop-loss price $13.7
(The author is a licensed person of the China Securities Regulatory Commission and does not hold any of the above stocks.)
Author: Dr. Tang Shengxing, Chairman of the Hong Kong Stock Analysts Association.