[ET Net News Agency, 06 May 2026] The situation in the Middle East has temporarily stabilised. US President Trump has suspended the "Project Freedom". The Chairman of the Joint Chiefs of Staff of the US, Caine, and the Secretary of Defence, Hegseth, both stated that the current level of Iranian attacks has not yet reached the threshold for resuming large-scale combat operations, reassuring the market. It is expected that the Iranian situation will remain under control before the Xi-Trump meeting. The global semiconductor sector surged, US stocks including the NASDAQ and S&P 500 hit new highs, and the Korean market also hit new highs upon reopening. The Hong Kong market, driven by external markets, recovered to 26,000 at the opening. Hong Kong Stock Connect trading resumed for half a day with a net outflow of only HKD 2 billion. However, during the session, the HSI was restricted by the 100 day moving average (around 26,101). After rising about 200 points, it lost momentum, closing the half day at 26,104, up 205 points or 0.8%, with the main board turnover approaching HKD 165.9 billion. The HSI China Enterprises Index was at 8,775, up 44 points or 0.5%. The HSI Tech Index was at 4,994, up 65 points or 1.3%.
"Mak Ka Ka: Insufficient catalysts prompt southbound capital to take profit"
The three major US stock indices closed higher collectively on Tuesday (5/5), with the NASDAQ and S&P 500 both hitting new intraday and closing highs, mainly driven by heavyweight tech stocks and chip stocks. The Korean stock market surged over 5% upon reopening, breaking through the 7,000 point mark for the first time. Mak Ka Ka, Head of Financial Products Trading and Research Department of SinoPac Securities (Asia), told the ET Net News Agency that the HSI is expected to maintain a range of 25,500 to 26,500 points in the short term, mainly limited by the current trend of funds flowing into AI hardware stocks, while the Hong Kong market lacks larger related stocks. She explained that the representative AI stocks in Hong Kong are currently AI platform stocks such as Tencent (00700) and Alibaba (09988), which have insufficient appeal to current funds, leading them to flow into the Japanese and Korean stock markets with more aggressive growth expectations. Therefore, even if hardware stock prices surge today, their impact on the overall market is hard to compare with the Korean stock market.
With the A-share market reopening and the Stock Connect resuming, southbound capital recorded a net outflow of about HKD 2 billion this morning. Mak Ka Ka pointed out that the investment strategy of southbound capital has shifted from one-way accumulation to flexible position adjustments. Once the upside is assessed to have peaked, profit-taking is carried out. She analysed that the Hong Kong market currently lacks significant positive catalysts, making it difficult to maintain the holding retention willingness of southbound capital, which to some extent limits the upward space of the HSI.
"AI hardware sector fully sought after, deploy SMIC in stages"
Bloomberg quoted sources as saying that Apple (US.AAPL) is actively diversifying supply chain risks and has initiated preliminary talks with Intel (US.INTC) and Samsung Electronics to serve as another supply option alongside long-term partner TSMC. Stimulated by the news, Intel's stock price soared by over 12%, hitting another all-time high, and its market capitalisation exceeded USD 550 billion in one go. Hong Kong chip stocks and PCB concept stocks also benefited similarly, with SMIC (00981) rising nearly 10%, and KB Laminates (01888) rising nearly 9%.
Although the Hong Kong market lacks an international-level chip leader, Mak Ka Ka expects the related sector to continue its trend of being fully sought after in the short term. She pointed out that AI hardware and PCB concept stocks showed a widespread rising pattern today, with average gains generally reaching 4% to 5%. Therefore, she believes that from a short term trading perspective, all stocks in the sector have room for speculation, providing greater flexibility in stock selection.
Mak Ka Ka suggests investors can prioritise deploying in larger leader stocks, such as SMIC (00981), with an expected price range between HKD 66 and HKD 80. She emphasised that chasing the market at high prices should be avoided, and suggested waiting patiently for a technical pullback, making phased deployment at the HKD 68 level more appropriate.
"Mak Ka Ka: Insufficient catalysts prompt southbound capital to take profit"
The three major US stock indices closed higher collectively on Tuesday (5/5), with the NASDAQ and S&P 500 both hitting new intraday and closing highs, mainly driven by heavyweight tech stocks and chip stocks. The Korean stock market surged over 5% upon reopening, breaking through the 7,000 point mark for the first time. Mak Ka Ka, Head of Financial Products Trading and Research Department of SinoPac Securities (Asia), told the ET Net News Agency that the HSI is expected to maintain a range of 25,500 to 26,500 points in the short term, mainly limited by the current trend of funds flowing into AI hardware stocks, while the Hong Kong market lacks larger related stocks. She explained that the representative AI stocks in Hong Kong are currently AI platform stocks such as Tencent (00700) and Alibaba (09988), which have insufficient appeal to current funds, leading them to flow into the Japanese and Korean stock markets with more aggressive growth expectations. Therefore, even if hardware stock prices surge today, their impact on the overall market is hard to compare with the Korean stock market.
With the A-share market reopening and the Stock Connect resuming, southbound capital recorded a net outflow of about HKD 2 billion this morning. Mak Ka Ka pointed out that the investment strategy of southbound capital has shifted from one-way accumulation to flexible position adjustments. Once the upside is assessed to have peaked, profit-taking is carried out. She analysed that the Hong Kong market currently lacks significant positive catalysts, making it difficult to maintain the holding retention willingness of southbound capital, which to some extent limits the upward space of the HSI.
"AI hardware sector fully sought after, deploy SMIC in stages"
Bloomberg quoted sources as saying that Apple (US.AAPL) is actively diversifying supply chain risks and has initiated preliminary talks with Intel (US.INTC) and Samsung Electronics to serve as another supply option alongside long-term partner TSMC. Stimulated by the news, Intel's stock price soared by over 12%, hitting another all-time high, and its market capitalisation exceeded USD 550 billion in one go. Hong Kong chip stocks and PCB concept stocks also benefited similarly, with SMIC (00981) rising nearly 10%, and KB Laminates (01888) rising nearly 9%.
Although the Hong Kong market lacks an international-level chip leader, Mak Ka Ka expects the related sector to continue its trend of being fully sought after in the short term. She pointed out that AI hardware and PCB concept stocks showed a widespread rising pattern today, with average gains generally reaching 4% to 5%. Therefore, she believes that from a short term trading perspective, all stocks in the sector have room for speculation, providing greater flexibility in stock selection.
Mak Ka Ka suggests investors can prioritise deploying in larger leader stocks, such as SMIC (00981), with an expected price range between HKD 66 and HKD 80. She emphasised that chasing the market at high prices should be avoided, and suggested waiting patiently for a technical pullback, making phased deployment at the HKD 68 level more appropriate.
