HANG SENG DROPS ON US SANCTIONS THREAT, PANDEMIC CONCERNS
Hang Seng futures are currently trading at 24286-lower by 0.77% as compared to the previous closing price. The contract closed in the positive territory in the last trading session.
In the Cash Markets, the Hang Seng index dropped 0.93% to close at 24,549.99 on Friday. The index dropped today after the US government moved closer to sanctioning people and firms it considers China’s accomplices in curbing Hong Kong’s autonomy.
New COVID-19 outbreaks worldwide also dampened the market sentiment on Friday.
The Hang Seng index was down 0.4% for the week.
The US President’s comments that the Phase 1 trade deal with Beijing remains fully intact helped offset earlier losses during the week.
The sub-index of the benchmark tracking energy stocks dropped 1.4% today.
The sub-index of the benchmark tracking financial stocks lost 0.9%, the property sector ended 1% lower and the IT sector fell 1.6%.
Financial markets in Hong Kong were closed on Thursday for a public holiday.
US lawmakers on the previous day passed legislation that would sanction people or firms they consider China’s accomplices in curbing the city’s autonomy.
Around 1.51B Hang Seng stocks were traded today higher from 1.43B in the previous session.
The Hang Seng China Enterprises Index fell 0.84% to close at 9,853.18 on Friday. For the week, the HSCE index is down 1.22%.
Top losers in the index include- China Mobile Ltd. (fell 2.9%), AIA Group Ltd (declined 2.0%) and WH Group Ltd (dropped 1.6%) on Friday.
Top gainers in the index include- Sunny Optical Technology Group Co Ltd (surged 5.4%), CSPC Pharmaceutical Group Ltd (rose 4.9%) and Bank of China Ltd (advanced 0.3%).
On the technical front, the RSI is currently at 49.62% and suggests that the market can move in the downward direction. The %K has crossed the %D from above to the downside at around 66% and suggests that the market can move in the downward direction. The current price is below the middle line of the Bollinger bands and is heading downwards.
Overall Bias is Negative and short-term trades can be initiated with below mentioned Stop Loss and Profit targets.
Trade Suggestion-Limit Sell At 24310 Take Profit At 24050 Stop Loss At 24440