[ET Net News Agency, 21 April 2026] US-Iran talks are reportedly planned to be held in
Pakistan on Wednesday. As the market weighs the subsequent developments of these
negotiations, US stocks faced resistance after consecutive gains, with the three major
indices retreating slightly. However, Asia Pacific stock markets continued to rise
optimistically. The HSI touched a nearly two month high of 26,486 points in the early
session, but the half day main board turnover of nearly HKD 108.8 billion failed to
support the move, causing the intraday gain to narrow. It closed the half day at 26,394,
up 33 points or 0.1%. The Hang Seng China Enterprises Index stood at 8,906, up 7 points or
less than 0.1%. The Hang Seng Tech Index was at 5,028, down 37 points or 0.7%.

"Mak Ka Ka: Market sensitivity to US-Iran situation has declined"

The two week ceasefire agreement between the US and Iran is set to expire on Wednesday
(22nd). Trump believes there is no need to extend the ceasefire, and the US side will
maintain the blockade of the Strait of Hormuz until negotiations yield clear results. Mak
Ka Ka, Head of Financial Products Trading and Research Department of SinoPac Securities
(Asia), told ET Net News Agency that market sentiment towards news of the US-Iran
situation has gradually become desensitised. The influence of news on market trends has
significantly declined, with the HSI maintaining a narrow range overall. As there are
currently no clear results from the US-Iran negotiations, market attitude has shifted from
active buying last week to a wait and see approach, with investors moving from index based
buying to structural stock selection. She suggests that in recent deployments, defensive
stocks such as high yield shares can be added appropriately to avoid risks brought by
deteriorating news.
Mak Ka Ka stated that after stabilising above 26,000, the HSI has reversed its earlier
weakness. Currently, the market still holds expectations for the reopening of the Strait
of Hormuz, and the asset atmosphere in Japan and Korea markets has also improved. The
26,000 point level for the HSI has transformed from a previous resistance level into a
support level. After the US-Iran impasse is broken, there is a chance to look towards
27,000 points.

"Lithium industry recovers moderately but lithium price volatility remains; cautious short
term trading for Tianqi and Ganfeng"

Tianqi Lithium (09696) announced yesterday that it expects net profit attributable to
shareholders for the first quarter ended 31 Mar to be at most RMB 2 billion, an increase
of up to 18.2 times. The group noted that operating revenue is expected to rise
significantly, driven by the development of the new energy industry and growth in
downstream demand, with the average selling price of major lithium products increasing
significantly during the period. Earlier, peer Ganfeng Lithium (01772) also issued a
positive profit alert, expecting net profit attributable to shareholders for the first
quarter ended 31 Mar to be at most RMB 2.1 billion, compared to a net loss of RMB 355
million in the same period last year.
Mak Ka Ka said that after lithium prices hit bottom, they have now entered a moderate
recovery. With Zimbabwe tightening lithium ore exports, the overall demand for lithium in
the industry has been pushed up, which is beneficial for Tianqi Lithium and Ganfeng
Lithium situated in the upstream of the industry. She expects lithium prices to experience
high volatility from May to August this year. Since Tianqi Lithium has currently broken
through its high since January this year and the share price has risen too rapidly, a
technical correction pressure is expected in the short term. She suggests that investors
without positions need not rush and can consider waiting for the share price to pull back
to the HKD 54 level.
Mak Ka Ka also reminded that although the fundamental outlook is strong, because Tianqi
and Ganfeng have high sensitivity to lithium prices, their share prices are prone to large
fluctuations. She suggests that investors should adopt swing trading in their deployment
and view these types of resource stocks with a cyclical mindset rather than as mid to long
term investments.