Monday, November 19, 2018
Martin Hennecke

AIA provides a shining example of getting ahead
The Hang Seng Index reached a high of 29,258 points before closing on 29,182 yesterday - a gain of 61 points to chalk up another 10-year high point. And the daily turnover stayed high at HK$115.3 billion.

The major gainer was AIA (1299), which rose 6 percent to HK$65.30, an all- time high.

As China will let foreign ownership exceed 51 percent three years on and there will not be any restriction after five years, AIA as the pioneer foreign-owned insurance firm looks to be in a solid position.

Morgan Stanley gave it a HK$97 target under the most bullish scenario, and people will be aware AIA along with Tencent (700) and Bank of China HK (2388) are my consistently recommended holdings. So here's hoping you're keeping hold of the three and buying more on any dip.

Yesterday's big movers also included new Hang Seng Index shares Country Garden (2007) and Sunny Optical (2382) while Cathay Pacific (293) and Kunlun Energy (135) were deleted and faced selling. So if anyone lacks time to pick stocks there is the Tracker Fund (2800) as the quality of HSI constituents is guaranteed.

Yet if the stock market always provides opportunity the pattern is never so simple.

Yesterday's newly listed Razer (1337) provided a lesson. It opened higher and reached HK$5.49, or 41 percent above its IPO price of HK$3.88.

Now, if you traded short term in Zhong An (6060) and China Literature (772) on their debuts you'd have made solid profit in a day. But it was not the case with Razer yesterday. It closed at HK$4.58, or down 29 percent on its day high.

Dr Check and/or The Standard bear no responsibility for any decision made based on this column.

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