Performance Filter for Hong Kong listed shares
Comment of the Day

July 09 2015

Commentary by Eoin Treacy

Performance Filter for Hong Kong listed shares

Eoin Treacy's view

The International Equity Library’s Performance Filter allows you to scan through the extensive lists of shares in the library and rank constituents by their performance over different time frames. Considering just how quickly Chinese shares have fallen and the impressive rebounds I thought it might be instructive to highlight some of the shares which have had the largest declines and perhaps more importantly those which have been resilient throughout. 

Huabao International is a maker of fragrance and flavourings with a focus on the tobacco sector. The share had been trending quite consistently until last month and has since been among the worst performers on the Index. It hit a new low earlier this week but rebounded impressively today. Its US ADR trades under the ticker HUIHY.

Real Estate Developers have taken on pariah status but it is worth highlighting that Fantasia Holdings has a forward P/E of 3.75 and a dividend yield of 5.28%. The share had been in the process of breaking out of a five-year base before the collapse but is now bouncing from the lower side of that base. 

BYD has been among the leading movers in Hong Kong for two days in a row as the prospect of it unwinding its deep oversold condition begins to gather more adherents. As a manufacturer of batteries and electric cars the company is a potential beneficiary of government policy to support the sector. 

China Everbright Ltd, a major financial services and asset management company, is already nearly 50% off its low but has not yet unwound half the decline. It is now approaching the first area of potential resistance in the region of the MA and will need to hold the low near HK$12 during any consolidation if recovery is to be given the benefit of the doubt. 

Among some of the better performers Tencent Holdings has bounced from the region of the 200-day MA to remain in a reasonably consistent uptrend. 

AIA Group has also bounced from the region of the 200-day Ma. 

Lenovo lost uptrend consistency when it broke its six-year progression of higher reaction lows but is deeply oversold and a reversionary rally at least back up towards the trend mean is looking more likely than not. 

Hengan International, an S&P Pan Asia Dividend Aristocrat is bouncing from a previous area of support near HK$80. 

Elsewhere in the tissue/personal care sector Biostime International has found at least short-term support in the region of HK$20. 

In the healthcare sector Tong Ren Tang Technologies has bounced from the region of this year’s earlier low. 

In the power station equipment sector Boer Power Holdings bounced this week from the region of the 200-day MA. 

 

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