The year of the wood goat will be friendly to the Hang Seng Index, which is likely to peak in July and then fall slightly in September, according to CLSA’s 21st tongue-in-cheek Fung Shui Index.
The brokerage’s index uses a mix of Chinese zodiac signs and terminology to chart the seasonal movements of the Hang Seng Index. It launched the index in 1992 as part of a Lunar New Year card for its clients and it has since become a popular stock tips reference.
“Looking at the historical record, the year of the goat has always been friendly to the Hang Seng Index,” CLSA research associate Marco Yau said.
Stocks in financial, technology, retail, telecommunications and internet will be volatile
“The last year of the goat in 2003 saw the Hang Seng Index rise by 50 per cent. The coming year of the goat may not repeat such a brilliant result but it will still be a smooth and stable year with the index likely to end higher at the end of the year than the current level.”
The CLSA Fung Shui Index for the year of the horse, which is drawing to a close, proved right most of the time, with the index rising from January, peaking in August and then rising and falling between October and December.
“Metal- and fire-related stocks in hotels, jewellery, gold and silver, electronics, oil and gas will do well, while mainland property, renewable energy and commodities also look good,” CLSA research associate Cherry Ma said. “However, stocks in financial, technology, retail, telecommunications and internet will be volatile.”