Message from Coach
*On this week’s market summary:*
▶️1. BNP Paribas hinted that the worst of the pandemic impact could be over even as an increase in provisions for potentially bad loans lowered fourth-quarter profits at France’s largest lender. “The bank has turned the page of 2020. 2021 is going to be a year of transition and the start of the rebound of the economy,” said chief executive Jean-Laurent Bonnafé on Friday. BNP reported that net income fell 13.9 per cent in the quarter to €1.6bn, but it still beat expectations of closer to €1.2bn.
▶️2. China’s central bank has downplayed its decision in January to reduce liquidity in the banking system that caused the country’s worst cash crunch in nearly six years, while fuelling worries about a gradual tightening of monetary policy to curb speculation and asset bubbles. In its fourth quarter monetary policy implementation report, the People’s Bank of China (PBOC) suggested financial markets should pay less attention to the adjustments in liquidity volumes it makes in open market operations to control money supply, and instead focus on the level of interest rates.
▶️3. Sino Land’s latest batch of flats at its Kwun Tong project received a tepid response, after the developer rushed through the weekday sales ahead of the Lunar New Year holiday, pricing it 30 per cent higher than its launch in 2018. Homebuyers bought 57 out of 132 flats in phase two of Grand Central on Monday, pulling in over HK$710 million (US$91.6 million). “The project has no problem and the pricing is also right,” said Sammy Po Siu-ming, chief executive of Midland Realty’s residential division.
▶️4. Hong Kong stocks rose for a third day on Tuesday, climbing to their highest level in two weeks, as oil and casino stocks advanced on bets on a stronger global economic recovery. China’s central bank also pledged a stable monetary policy after recent concerns about liquidity support, boosting sentiment. The Hang Seng Index gained 0.5 per cent to 29,476.19, closing at its highest level since January 25, when the benchmark closed above 30,000 for the first time since May 2019. The Shanghai Composite Index surged 2 per cent to 3,603.49 for a second day of gains. Sands China climbed 3.3 per cent to HK$33.95 while Melco International appreciated 4.8 per cent to HK$15.36. MGM China increased 1.5 per cent to HK$12.54. JPMorgan had upgraded five Macau casino stocks earlier this week.
One of the must-ask interview questions for banking and finance is: “Have you read any news recently?”, with the follow-up questions: “How would you link this news to the market and what investment suggestions would you give to your clients based on this news?”
Showing your market sense and ability to provide feasible investment ideas would help to differentiate you from other candidates. Therefore, apart from the weekly news update / investment insights, we have also generated this Weekly Market Summary for you to have a quick understanding of the market development and tips to answer some hot discussion topics.
Take a look of the summary and WhatsApp us in the group if you have questions.