Top Sector Gainers
|Retail Trade||+0.6%||Alibaba surges 11% on back of China optimism after Beijing approves more video games|
Alibaba Group Holding Ltd (BABA US)
|Consumer Durables||+0.2%||Why Nio Stock Is Popping Ahead of Q1 Earnings|
Nio Inc (NIO US)
Top Sector Losers
|Non-Energy Minerals||-2.5%||Gold Price Forecast: US CPI Data Unlikely to Support XAU Prices|
Barrick Gold Corp (GOLD US)
|Transportation||-2.4%||Union Pacific warns on inflation pressures|
Union Pacific Corp (UNP US)
Linde Plc (LIN US)
- Alibaba Group Holdings Ltd (BABA US) and Bilibili Inc (BILI US) shares rose 14.7% and 6% respectively yesterday after China approved the second group of domestic licences for video games, further signs that Beijing is working to support its tech sector. And Chinese Vice-Premier Liu He recently told executives at top-tier tech firms the relationship between the government and the firms would be “properly managed.” Liu added the country would continue to fight “the battle for key core technologies,” another sign China is easing regulatory pressures on its tech companies.
- DiDi Global Inc (DIDI) shares rose 12.1% yesterday, extending their rally. On Monday, it was reported China would end its probe on ride-sharing firm DiDi and allow DiDi to add new users to its platform.
- Moderna (MRNA US) shares advanced 2.2% after a study showed that an upgraded version of the firm’s coronavirus vaccine produced a better immune response against the omicron variant. Moderna expects the vaccine to get clearance in late summer.
- Affirm Holdings Inc (AFRM US) shares fell 4.2% after Wedbush initiated Affirm with an underperform rating. Wedbush cited increasing competition in the space, slowing e-commerce sales and rising funding costs.
- Dyna-Mac Holdings Ltd (DMHL SP) and Kim Heng Ltd (KHOM SP) shares rose 19.5% and 6.8% respectively yesterday. WTI crude futures firmed up just below $120 per barrel on Wednesday, holding near a 14-year low hit in March, buoyed by tight global supplies and the prospect of higher demand from the relaxation of China’s Covid curbs and the summer driving season in the US. Markets are also gearing up for the release of official US crude inventories, which is expected to show another drawdown last week although gasoline and distillates stocks could edge higher.
- Nio Inc (NIO SP) shares rose 5.8% yesterday. Nio is due to report its 1Q earnings on Thursday (9 June). Nio delivered more than 7,000 vehicles in May, up 4.7% from a year ago. The company also said in a statement that its manufacturing had been “gradually recovering” in May from pandemic-related disruptions, but that its ability to deliver vehicles was “still constrained to a certain extent” by lockdowns and other measures imposed to limit the spread of new Covid variants in some regions of China. The lift on Shanghai’s Covid-19 restrictions recently could also be a catalyst for the share price as production of vehicles is expected to resume.
- Samudera Shipping Line Ltd (SAMU SP) shares rose 6.1% yesterday. There was no company-specific news, however the gain was likely due to the reopening news of Shanghai and Beijing. Major Chinese cities Beijing and Shanghai began to relax Covid controls over the weekend as the local case count dropped. In Beijing, major shopping centres, including a luxury mall that temporarily closed a month ago due to Covid, announced they would reopen as of Sunday. Ride-hailing and most public transport resumed in the main business area, while more people were allowed to return to work. Some libraries, museums and gyms could reopen at half their capacity, if no Covid cases were found in the past seven days at a community level.
- Golden Energy & Resources Ltd (GER SP) shares rose 6.3% yesterday. Newcastle coal futures, the benchmark for top consuming region Asia, consolidated above the $400-per-tonne mark and just 20 dollars shy of its record peak, supported by continued robust demand against a tightening market backdrop. Along with increasing demand for power generation with a resumption in economic activity after the coronavirus-induced slump, soaring natural gas prices in Europe and Asia in late 2021 boosted coal consumption.
Top Sector Gainers
WuXi Biologics (Cayman) Inc (2269 HK)
Alcoholic Drinks & Tobacco
China Resources Beer (Holdings) Company Limited (291 HK)
E-Commerce & Internet Services
Bilibili Inc (9626 HK)
Top Sector Losers
Huaneng Power International Inc (902 HK)
Smoore International Holdings Ltd (6969 HK)
China Unicom Hong Kong Ltd (762 HK)
- Shanghai MicroPort MedBot Group Co Ltd (2252 HK) Shares jumped 20.8% and closed at a one-month high yesterday. Beigene Ltd (6160 HK) Shares jumped 13.8% and closed at a one-month high yesterday. There was no company-specific news for both companies. The biotech sector jumped as investors regained confidence in growth stocks.
- Bilibili Inc (9626 HK) Shares jumped 19.6% and closed at a two-month high yesterday. There was no company-specific news. China approved its second batch of video games this year following a months-long freeze. The approval of 60 new titles by the National Press and Publication Administration marks an acceleration from April’s 45 and includes entries from studios like Genshin Impact creator MiHoYo. China’s two powerhouse games publishers, Tencent Holdings and NetEase, were absent from both lists, but analysts see their prospects for approval improving as well.
- GDS Holdings Ltd (9698 HK) Shares jumped 11.8% and closed at a one-month high yesterday. There was no company-specific news. Hong Kong Tech sector jumped after the authority approved its second batch of games this year following a months-long freeze, in a step toward normalization in the world’s largest mobile entertainment arena.
- Yankuang Energy Group Company Limited (1171 HK) Shares jumped 11.7% and closed at a 52-week high yesterday. Yancoal Australia rejected the US$1.8bn takeover bid from China’s Yankuang, saying that both the value and the proposed structure of the deal were not in the best interests of its minority shareholders. The coal sector jumped as investors expected strong demand for coal in the upcoming summer.
Trading Dashboard Update: No additions/deletions of stocks.