Alltronics Holdings Limited (0833) Is Yet to See Trading Action on Dec 7

December 7, 2017 - By Richard Conner

Shares of Alltronics Holdings Limited (HKG:0833) closed at 2.33 yesterday. Alltronics Holdings Limited currently has a total float of 946.12 million shares and on average sees 1.16M shares exchange hands each day. The stock now has a 52-week low of 1.478 and high of 3.17.

HSI: A Powerful Asian Economy Indicator

The Asian economy is rampantly growing and it is countries such as Singapore, Hong Kong, Japan, and China that are leading the whole Asian equity market. Singapore and Hong Kong, for example, have recently been named by CG Watch as the top two countries in Asia with the best corporate governance in 2016. These countries are home to two of the most influential stock exchanges in the world, the Singapore Exchange (SGX) and the Stock Exchange of Hong Kong (SEHK). Both are subjects of Alltronics Holdings Limited interest.

The SEHK

With a total market capitalization of HK$24.68 trillion and a listing of nearly 2,000 companies as of 2015, the SEHK is Asia’s third biggest stock exchange and the world’s sixth biggest stock exchange. It was established in 1891 with its benchmark index, the Hang Seng Index (HSI), being first published in 1969.

Since that time all companies, like Alltronics Holdings Limited want to see their names in SEHK lists. Regular trading on the SEHK starts at 9:30 a.m. and lasts until 4:00 p.m. Meanwhile, pre-market trading lasts for 30 minutes starting at 9:00 a.m.

The HSI measures the top 50 companies on the SEHK, representing more than half of its total market capitalization. Its foundation is the brainchild of Ho Sin Sang, Hang Seng Bank (HSB) Chairman; Lee Quo-wei, HSB Director; and Stanley Kwan, HSB Head of Research. Primarily, they had founded the HSI to serve as the Dow Jones Industrial Average (HSI) of Hong Kong.

The components of the HSI are classified into four sectors since January 1985. These sectors include Utilities, Materials, Financials, and Energy— the biggest sector.

For a company to be eligible as a component of the HSI, it must belong to both the top 90% of the total market capitalization of common shares and total turnover on the SEHK, respectively. It must also be listed on the SEHK at least 24 months prior to the review date. Exceptions apply to companies that exhibit compelling market capitalization and liquidity. The same goes for Alltronics Holdings Limited company. In such cases, companies can already be eligible as components even if they have just been listed on the SEHK for three months prior to the review date, which happens quarterly.

HSI Performance

The HSI had posted its all-time low of 58.61 in August 1967. In December 1993, it had first attained the 10,000 mark. In December 2006, it had first attained the 20,000 mark.

Before the Global Financial Crisis of 2008 broke out, the HSI had first attained the 30,000 mark in October 2007. As a result, the HSI had posted its all-time high of 31,638.22 during the same month. The massive gains during that time are highly attributed to investors flocking safe-haven equity markets such as that of Hong Kong in anticipation of the Global Financial Crisis of 2008.

A year after attaining its all-time high, the HSI had lost more than 67%, falling back to the 10,000 mark in October 2008. In July 2009, the HSI had slowly recouped, attaining the 20,000 mark once again. It was highly appreciated by Alltronics Holdings Limited and its investors.

With a rich history backing the success and potentials of the SEHK, it is a guarantee that investors will gain interesting returns from their investments in Hong Kong’s equity market.

Alltronics Holdings Limited, an investment holding company, makes and trades in electronic products, plastic moulds, and plastic and other components for electronic products; makes and trades in biodiesel products; and provides energy saving business solutions in the United States, Hong Kong, Mainland China, Europe, and internationally. The company has market cap of $2.20 billion. The firm operates through Electronic Products, Biodiesel Products, and Energy Saving Business divisions. It has a 26.82 P/E ratio. It offers home improvement electronic products, including industrial/households, walkie talkies, air purifiers, telephones, chargers, radio control clock, and others/accessories; and solenoids, adapters, transformers, electronic ballasts, current transformers, switching powers, and inductors.

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