US Federal Reserve (Fed)’s latest minutes in June revealed that Fed officials were divided on the timetable of future interest rate hikes and balance sheet runoff, suggesting that future rate hikes and deleveraging of Fed’s balance sheet may not take place anytime soon.
The Hong Kong Legislative Council had been debating the issue on the 15% property stamp duty imposed on non-first time buyers.
As we enter the year 2017, we have seen the Hang Seng Index rise incredibly for six consecutive months. Many investors regret selling their quality stocks and strong stocks when the stock market was still on the rise.
Previously, I have recommended Orient Overseas International Ltd (316.HK) and Cathay Pacific Airways Ltd (293.HK) to investors. It turned out that the share price of Orient Overseas International rose by 5.08 percent on the same day, though it had nothing to do with my recommendation. I was merely lucky that COSCO SHIPPING Holdings Co Ltd (1919.HK) had issued an earnings alert that day with the announcement of a turnaround.
Activities in the global stock market have been somewhat muted in the past month. Despite some major indices like the Dow Jones, Straits Times Index and Hang Seng Index continuing to break new 52-week highs, stocks continued to trade range-bound.
On Tuesday (4th July), the stock price of Tencent Holdings Ltd (700.HK) adjusted by 4.13 percent and Galaxy Entertainment Group Ltd (027.HK) by 3.56 percent. The total adjustment over the past few days was 6.65 percent for Tencent and 9.14 percent for Galaxy Entertainment Group.
On Tuesday (27 Jun), the share prices of many market manipulators plunged as if going through a market crash. Meanwhile, there are people betting on a rebound amidst the market chaos, and we even see many people happily sharing live market “tips” in online discussion groups.
On 14 June 2017, the US Federal Reserve (Fed) announced its decision to hike federal funds rate by another 25 basis points, making the current Fed funds rate 1.25 percent. Despite it being a move that was largely within market expectation, US stocks showed a lack of direction during early trading. But the Dow eventually managed to climb 0.22 percent before the close.
The US Federal Reserve raised interest rates on 14 June. Due to the time zone difference, Hong Kong only received the news on the eve of 15 June. When the result was still unknown, I had advised investors to make no moves, not to sell their stocks in fear of interest rate hike. I had also advised against taking the opportunity to buy low even if stock prices were to fall.
Galaxy Entertainment Group Ltd (027.HK) and Sands China ltd (1928.HK) rose against the market despite the Hang Seng Index crashing by 300 points on 12 June, and they continued their rise on 13 June. Link REIT (823.HK), which reached a new high on 13 June after adjusting on the day before that, remains a strong stock that should not be given up.