[ET Net News Agency, 30 December 2024] In the early session, the Hang Seng Index once
rose by a hundred points; however, domestic consumption and the gambling sector
experienced sharp declines during trading, dragging the Hang Seng Index down by 113 points
or 0.6% to 19,976, with the 20,000-point mark appearing unstable. The main board turnover
exceeded HKD 69.6 billion. The Hang Seng China Enterprises Index stood at 7,262, down 42
points or 0.6%. The Hang Seng Tech Index was at 4,496, down 41 points or 0.9%.

"Nip Chun Pong: Hang Seng needs to close above 20,500 to be beneficial for future trends"

Last week, Hong Kong stocks faced pressure after reaching 20,000 points, with no clear
deployment strategies as the year-end approaches. The Hang Seng Index dropped by
approximately 100 points midday. Nip Chun Pong, the Chief Strategist at Blackwell Global
Securities, told Net News Agency that it's challenging to predict whether the index will
stabilize above 20,000 by year-end. He expects the index to fluctuate around 20,000 in the
coming days. Nip believes that even if the Hang Seng Index stabilizes above 20,000 for the
year, it may not be significant for future trends. On the contrary, closing above 20,500
could establish a short-term upward trend. He noted that since mid-November, the index has
been mostly constrained by 20,500, and breaking above this short-term range would be
favourable for the future.
With about half a month left until Donald Trump officially returns to the White House,
Nip mentioned that there's still significant uncertainty in the market regarding Trump's
stance towards China. However, there are expectations that Mainland China might reduce
interest rates or reserve requirements to counter any potential tough policies from Trump,
strengthening investments in Chinese tech companies. Nip anticipated that in the face of
potential increased trade pressures, Mainland China would stimulate domestic demand to
support economic growth, benefiting sectors focused on domestic consumption.

"Trip.com faces selling pressure with HKD 500 as major support; Lunar New Year optimism
has already priced in"

South Korea recently experienced its most severe domestic air disaster due to a
suspected bird strike leading to a plane crash with 181 people on board, where only two
survived while the rest perished. The Korean government declared a seven-day national
mourning. This morning, stocks related to travel were generally under pressure, possibly
influenced by the air disaster news, with Trip.com (09961) falling below the 20-day moving
average and the important support level of HKD 550. Nip pointed out that the air disaster
news could raise caution and weaken the performance of travel stocks. However, he also
noted that travel stocks like Trip.com had seen significant speculation earlier, creating
a slightly overheated atmosphere, leading to greater selling pressure when negative news
surfaces in the sector.
Trip.com previously approached HKD 598 but faced resistance before reaching the HKD 600
mark. Nip indicated that on the daily chart, the stock price showed mostly bearish
candles, suggesting that even without negative air disaster news, Trip.com was due for a
corrective pullback. He expected initial support around HKD 520, near the 50-day moving
average, and a significant support level at HKD 500 if breached. Investors should not
eager to exit before the stock fell below HKD 500, and those looking to enter could
consider doing so around these levels.
However, Nip emphasized that there is resistance at HKD 580, and he believed that the
positive impact of the Lunar New Year peak season was already priced into the stock. Even
with a bullish market, breaking through the HKD 600 resistance level would be challenging.