HK Stock Market Move | WHARF REIC (01997) rose nearly 6% to a four-month high with institutions pointing to potential benefits in the second half of the year from the US interest rate cuts.

WHARF REIC (01997) rose nearly 6%, reaching a high of 25.4 Hong Kong dollars, hitting a new high since May this year. As of the time of writing, it rose by 5.83% to 25.4 Hong Kong dollars, with a turnover of 129 million Hong Kong dollars. On the news front, a HSBC research report pointed out that the fundamentals of the Hong Kong real estate industry should gradually improve, as the interest rate reduction cycle is beginning to benefit the property market cycle, believing that it will be driven first by the decrease in financing costs, followed by improved operational performance, supporting the dividend-paying ability of property stocks. The bank believes that WHARF REIC's profits will continue to recover in the coming years due to the improvement in its shopping mall leasing prospects. Dah Sing Securities previously indicated that for the second half of this year, WHARF REIC is expected to become a major beneficiary of potential interest rate cuts in the United States. The report stated that the company's basic profit in the first half of the year increased by 2.1% year-on-year, benefiting from rising retail rental income and declining financial costs. However, considering the weaker than expected recovery of retail sales in Hong Kong, the basic profit forecast for WHARF REIC for 2024, 2025, and 2026 has been lowered by 6.7%, 10.1%, and 9.2% respectively.