Q1 Recap | HSI Remained as the Worst Performer Among Peers!
Hong Kong stocks is closed on Good Friday, marking the end of a pretty tough quarter.
Looking at the global stock markets, $HSI(HSI)$ fell 2.97% in the first quarter, lagging behind all the major indices. Prior to this, the index has been on a losing streak for four straight years. Who could have predicted it would buck the trend when the rest of the world's stock markets were surging?
By sectors
The best performer in the first quarter was daily consumption, with a quarterly gain of 3.8%.
Materials and telecom services followed suit, while healthcare, real estate, and finance continued to lead the losers.
The healthcare sector is still limited by fundamental challenges.
The datas shows, domestic biopharmaceutical investment and financing amounted to $661million, and chemical pharmaceutical investment and financing to taled $316 million, a combined total of $977 million, still down 10%!
And it's not just healthcare. The real estate market is also suffering. According to the China Index Research Institute, sales of the top 100 property developers totaled 476.24 billion yuan in January and February, down 51.6% year-on-year!
While the stock market has been poor, southbound funds have been snapping up stocks.
In the first quarter, they bought a net total of HK $133.1 billion, with March seeing a record high of HK $85.9 billion.
Highlight of individual stocks
Among companies with a market cap of over HK $100 billion, $CMOC(03993)$ was the biggest winner, soaring 56%.
These stocks are mostly concentrated in energy sectors like oil and commodities.
On the flipside, stocks with the biggest losses among those with a market cap of over HK $100 billion are clustered in the biopharmaceutical, real estate, and financial sectors. $WUXI APPTEC(02359)$ , hit hard by the US Biomedical Act, saw the steepest decline, losing 53% of its value.
IPO
Relatively cold due to the market gloom. We only saw 12 new listings in the first quarter, a decrease of 6 compared to the same period last year.
However, from the performance of the first day of listing, the rate that falls on its first day of trading is only 25%, and the profit efficiency is better:
Looking ahead, after years of decline, $HSI(HSI)$ is now trading at a PE ratio of just 8.5 times, which is still near the lows of the past decade.
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It is a bottomless pit as long as US & China ties do NOT improve.
I am sitting on massive Alibaba paper loss, all thanks to politics at play...
Looking at data is only 1 side of investment game.
The other is I scratch your back, you scratch mine. This is obviously not happening now, hence the slump.....