Financial News
Written by: Huang Youhua
2021-03-24 13:53
Last update date: 2021-03-24 13:56
Global investment sentiment weakened again.
Investors are worried about another outbreak of the new epidemic in Europe and the city will be closed, which may have a chance to drag down the economic recovery. It suddenly became a panic. In addition to the low closing of the three major U.S. stock indexes, Hong Kong stocks were also affected.
The Hang Seng Index fell below the 28,000-point mark and dropped by more than 600 points or 2% in the afternoon. The KSI fell even more sharply, by more than 3%, and even fell below 8,000 points.
The performance of many blue chips was under pressure, and Geely (0175) continued its downward trend, falling below the 20 yuan mark, a drop of more than 10%.
Heavyweight AIA (1299) fell more than 3%.
Technology stocks have even become the hardest hit areas for the market decline today. Among them, Tencent (0700) and Xiaomi (1810), which will announce their results after the market closes, went down the same. The semi-new stock (1024), which has announced its full-year results yesterday, plunged 12%.
The sharp drop in oil prices also pushed the three barrels of oil under pressure across the board.
Experts: The market fell below the head and shoulders and does not rule out that there is still room for decline
Faced with the continuous decline of the market, investors' confidence in the stock market has been hit hard.
Wen Jie, wealth management strategist at Everbright Sun Hung Kai, believes that the market has turned on a "yellow light."
He pointed out that the fall in debt yields to a certain extent means that the market has weakened the prospect of economic recovery.
First of all, the repeated or worsening epidemic in Europe is the reason for the sharp drop in oil prices. It also represents the weakening of the economic outlook that the stock market and traditional economic stocks have risen.
He further pointed out that the fall in debt yields not only failed to help new economic stocks, but also affected traditional economic stocks that performed well in the recent rankings, including bank stocks and energy stocks.
When new economy stocks were dragged down by the worsening market sentiment, highly valued stocks fell, and traditional stocks were under pressure again, leading to poor performance of Hong Kong stocks today.
Wen Jie also believes that the current market has fallen below the double bottom, that is, the position of 28200 to 28300 points, which is also the head and shoulders top of the market.
Therefore, triggering investors to sell goods is also one of the factors that caused the market to fall.
In addition, problems in emerging market Turkey have increased risk aversion.
Wen Jie pointed out that rising interest rates on US debt and the US dollar dragged down emerging market interest rates last week.
As a result, asset prices in some emerging markets have fluctuated, which in turn affected the investment sentiment in Hong Kong stocks.
Based on past performance, if capital flows in emerging markets, Hong Kong stocks will also be affected.
Wen Jie pointed out that he had suggested that investors can enter the market between 28,000 and 28,500.
In principle, investors should have the goods on hand now.
However, since the market has fallen below the double bottom, he does not rule out that there is still room for a fall. Investors may choose to wait and see the market first.
Wen Jie Blue Chips
