The Hang Seng closed today’s trading session with a 2.7 per cent gain, closing the session at 20,820.87. The surge in price was one of its biggest jumps since June 6.
The surge also comes days after Hang Seng traded sluggishly last week when it closed the markets 6.5 per cent down after a five-day losing streak. The drop in prices marked the largest single-week drop in over two years.
The snap from the five-day bear run that resulted in a 6.5 per cent last week is due to the property and technology industries performing today. The top gainers of the Hang Seng index included Country Garden Holdings Co., China’s largest builder, after news of the Chinese government urging lenders to support the real estate sector following the recent mortgage boycott.
The tech industry has also played a significant role in the current rise of the Hang Seng share price. According to data, the Tech Index added 3 per cent. This indicated a recovery for one of China’s largest industries, which helped push the Hang Seng Index up.
Following today’s 2.7 per cent market gain, it seems like all the factors align in Hang Seng’s favour. With the real estate industry being one of the largest in China, the move taken by the government to help them continue operating has been positive in the markets. It may be the reason for the recent Hang Seng Index gains.
There is also the technology industry that is also performing well. Therefore, a combination of all these factors indicates that the next few trading sessions are likely to be bullish. As a result, my Hang Seng Index analysis expects it to rise and trade above the 22,000 level.
However, my analysis will be invalidated if the price level drops below the recent 20229 price level. At that point, a bearish trend will be likely.
This post was last modified on %s = human-readable time difference 15:17