[ET Net News Agency, 05 June 2024] The Hang Seng Index reported 18,505 in the morning
session, up 61 points or 0.3%. The main board turnover was over HKD 64.5 billion. The Hang
Seng China Enterprises Index reported 6,572, up 17 points or 0.3%. The Hang Seng Tech
Index reported 3,825, up 29 points or 0.8%.
The top three traded stocks in the Hang Seng Index were Tencent (00700), Meituan
(03690), and Alibaba (09988). Tencent closed at HKD 384, up HKD 6.6 or 1.7%, with a
turnover of HKD 4.622 billion. Meituan closed at HKD 113.2, down HKD 0.3 or 0.3%, with a
turnover of HKD 1.776 billion. Alibaba closed at HKD 77.45, up HKD 1.05 or 1.4%, with a
turnover of HKD 1.556 billion. The top three traded stocks in the Hang Seng China
Enterprises Index were Tencent, Meituan, and Alibaba. The top three traded stocks in the
Hang Seng Tech Index were Tencent, Meituan, and Alibaba.

"Yip Sheung Chi: Hang Seng Index's ability to break above 18,500 depends on trading
volume"

The Hang Seng Index opened higher this morning and remained stable in the early session.
Then, with the release of the Caixin Services PMI for May by the Mainland China, which
came in at 54, better than market expectations, the Hang Seng Index gained momentum and
rose to 18,724 at one point. Yip Sheung Chi, the Chief Strategist of First Shanghai
Securities, told ET Net News Agency that the Hang Seng Index has been consolidating since
its high in May for the past two weeks. The index has tested the 18,500 level multiple
times and breaking above this level today, fueled by positive data and the market's
expectation of a higher chance of an interest rate cut announcement by the European
Central Bank tomorrow, has not come as a surprise. However, it is important to observe
whether the index can maintain a close above 18,500 points and if the trading volume
supports it. Since the inflow of funds into Hong Kong stocks this year, the average daily
turnover in the first five months has reached HKD 110 billion, with May reaching as high
as HKD 140 billion. If the market's trading volume cannot be maintained at a high level in
the short term, the Hang Seng Index may experience a pullback. He expects the Hang Seng
Index to fluctuate within the range of 18,000 to 19,000 in the short term.

"Sunny Optical's upward momentum is solely based on concepts and may not be sustainable"

Apple's Worldwide Developers Conference (WWDC) for 2024 is scheduled to be held from
11th to 15th June. Analysts from Morgan Stanley expect that Apple will emphasize AI device
features, introduce cloud and data centre elements, showcase improvements to existing
applications, and emphasize that Apple is not lagging behind in AI. The iPhone 16 series
is expected to benefit from AI upgrades.
Sunny Optical (02382) led the gains among blue-chip stocks in the early session, rising
as much as 7.6%. Yip Sheung Chi believes that Sunny Optical has lagged behind and its
stock price has rebounded from around HKD 33 in April. As of today's high, it has
accumulated a significant gain of 45%, which is quite rapid. While he acknowledges that
Sunny Optical's lenses and optical products can benefit from Apple's AI phone business,
the AI phone from Apple has not been released yet, and its subsequent sales performance is
unknown. Relying solely on conceptual catalysts for the stock price increase may not be
sustainable. He expects resistance around HKD 50 for Sunny Optical's stock price, and
those without positions should wait for a pullback before considering further actions.