{Market Preview}Investors can consider gold ETF

[ET Net News Agency, 19 August 2024] The Hang Seng Index was at 17,614 in the morning
session, up 184 points or 1.1%, and exceeded the 50-day moving average (approximately
17,594 points). The main board transaction volume exceeded HKD52 billion. The Hang Seng
China Enterprises Index was at 6,244, up 82 points or 1.3%. The Hang Seng Tech Index was
at 3,545, up 86 points or 2.5%.
The three largest traded stocks on the Hang Seng Index were Tencent (00700), Alibaba
(09988) and Xiaomi (01810); Tencent reported HKD372.6, no change, up HKD0 or 0%, with a
turnover of HKD3.041 billion; Alibaba reported HKD82.05, up HKD1.95 or 2.4%, with a
turnover of HKD2.752 billion; Xiaomi reported HKD17.8, an increase of HKD0.48 or 2.8%,
with a turnover of HKD1.402 billion. The three largest traded stocks of Hang Seng China
Enterprises were Tencent, Alibaba and Xiaomi. The three largest traded stocks on the Hang
Seng Tech Index are Tencent, Alibaba and Xiaomi.

"Kingston Lin: it is expected that the Fed's annual meeting will have little positive
effect, and the Hang Seng Index's 10-day support will be strong"

Hong Kong stocks continued to gain momentum. The Hang Seng Index rose as much as 255
points in half a day, but the rise was obviously blocked after hitting the 100-day moving
average. Kingston Lin, a director of the The Hong Kong Institute of Financial Analysts and
Professional Commentators Limited, told ET Net News Agency that the Hang Seng Index had
recovered from the extremely panic level of 16,441 and has accumulated a gain of about
1,200 points. During this period, negative news such as Japanese yen unwinding and worries
about the U.S. economic recession were included and the expectations have diminished. It
is believed that the current rebound in Hong Kong stocks has been reflected, and it is
expected that the Hang Seng Index will not have much room to rise in the short term.
He believes that further gains in Hong Kong stocks will depend on more major good news,
but the market has early expectations for the tone of the upcoming Jackson Hole annual
meeting of global central banks, including the direction of the yen and US Federal Reserve
Chairman Powell's dovish remarks, unless the remarks exceeded expectations, otherwise they
would have little impact on Hong Kong stocks.
Kingston Lin expects that the Hang Seng Index will have greater resistance at around the
50-day and 100-day levels, and that the short-term upward trend will soon end and will
start to retreat. However, because it broke through the short-term downtrend last Friday
(16th), a major fall is not expected. The biggest support is expected to be around 17,000
to 17,100 on the 10-day moving average, and the level of correction is about 600 points.

"It's not surprising that the price of gold exceeds USD 2,700, and it is okay to buy chase
ETFs even if they break their peaks"

The annual meeting of global central banks in Jackson Hole is about to be held. The
market is looking forward to interest rate cuts in the United States. Coupled with
geopolitical tensions, the price of gold broke through the resistance of USD 2,520 dollars
this weekend, and the current price is hovering at the level of USD 2,540, hitting a
record high. Gold mining stocks have soared since this morning, with Zhaojin Mining
(01818) rising by more than 6%, Zijin Mining (02899) rising by more than 2%, and SPDR Gold
ETF (02840) rising above HKD 1,800. Kingston Lin is optimistic about the outlook for gold
prices. The expectation of interest rate cuts will continue to help gold prices hit new
highs. It is not surprising that gold prices will test USD 2,700 after the United States
truly begins to cut interest rates. He believes that the upward speed of gold prices is
closely related to the intensity of U.S. interest rate cuts. The greater the interest rate
cut expectations, the greater the momentum of gold prices.
Therefore, Kingston Lin suggested that investors can also buy gold ETFs at current
prices. However, gold mining stocks are more subject to fluctuations in stock
fundamentals, so buying them is no different from speculation. If investors want to
speculate on the gold price, they should speculate on gold ETF.