Home Capital Right Timing

Chinese stocks boost Hang Seng Index as STI flounders

Goola Warden
Goola Warden6/10/2022 08:13 PM GMT+08  • 2 min read
Chinese stocks boost Hang Seng Index as STI flounders
Hong Kong skyline
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

The Hang Seng Index has gained significant strength against the Straits Times Index, rising above its 50-day moving average at 20,965. The HSI touched a one-month high of 22,014 on June 8, just short of its still declining 100-day moving average at 22,042. With the 50-day moving average attempting a gradual upturn, and several Singapore dollar based ETFs which track indices in Hong Kong such as the Hang Seng Tech Index and the MSCI China Index forming base formations and breaking out of these base formations, the HSI could move above the 22,000 level. Support is at the 50-day moving average at 20,965.

Interestingly on June 10, the SGX announced that SGX-listed China equity ETFs recorded a 25th consecutive month of combined net inflows, with $468 million of net creations since 2020. This included $104 million of net creations year-to-date.

The STI on the other hand was unable to hold on to its break above its 200-day moving average at 3,224 and fell sharply on June 10. This move is a sign of weakness, partly because it occurred at the end of a trading week, when the STI closed at 3,181, down 50 points week-on-week.

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.
Unlock unlimited access to premium articles with less than $9 per month. Subscribe Now