[ET Net News Agency, 08 April 2026] US President Trump accepted Pakistan's ceasefire
proposal, suspending attacks on Iran for two weeks after Tuesday's negotiation deadline
expired. Iran also agreed to a temporary ceasefire, with both sides commencing
negotiations in Islamabad, the capital of Pakistan, on Friday. The news boosted US stock
futures this morning, with Japanese stocks rising 5% and Korean stocks soaring over 6%.
Returning from a multi-day break, the Hong Kong market encountered a miraculous rally,
opening over 650 points higher and breaking through both the 250 day line (around 25,151)
and 10 day line (around 25036) in one go. However, resistance was met at the 26,000 level,
and gains did not expand further during the session. The HSI closed the midday session at
25,821, up 705 points or 2.8%, with main board turnover exceeding HKD 200.5 billion.
Southbound capital currently shows a net outflow of over HKD 11.2 billion. The Hang Seng
China Enterprises Index stood at 8656, up 199 points or 2.4%.

"Mak Ka Ka: Market switches from war risk trading to cooling down trading"

Both China-US and Iranian parties showing willingness for a ceasefire has driven the
market rebound, with the HSI rising over 700 points at midday. Mak Ka Ka, Head of
Financial Products Trading and Research Department of SinoPac Securities (Asia), told ET
Net News Agency that the market is currently switching from war risk trading to cooling
down trading. Simultaneously, oil prices have dropped, with Brent crude futures falling
over 10%, collectively stimulating Asia-Pacific stock markets. The rebound in Japanese and
Korean markets, which were previously more affected by the Middle East situation, has been
more significant. Mak Ka Ka reminded that because the situation remains volatile, she
maintains a wait and see attitude towards the future market, and the trend will still
depend on whether the Strait of Hormuz remains navigable.

"GigaDevice executives cash out heavily, expected to pose mid-term pressure"

Yesterday, Samsung Electronics disclosed its 2026 first quarter results, with the
company's operating profit surging 755% year on year to 57.2 trillion Korean won; the
single quarter operating profit has already surpassed last year's full year performance.
Coupled with the positive market atmosphere, chip stocks outperformed the broader market.
Mak Ka Ka stated that chip stocks are data intensive shares that experience short term
rebounds when market risk appetite expands and sentiment improves. Furthermore, chip
prices continue to rise due to demand and manufacturing costs, and prices are expected to
keep rising in the second quarter, benefiting the trend of chip stocks. However,
individual stock price movements still require a wait and see approach regarding whether
there will be pressure from executives cashing out at high prices after the hype over
Mainland China domestic substitution.
In the medium to long term, Mak Ka Ka believes the trend for chip stocks remains
optimistic and suggests accumulating during price corrections. She noted that SMIC (00981)
has a support level at HKD 49 and suggests accumulating in the HKD 50 to HKD 57.5 range,
while Hua Hong Semi (01347) can be accumulated around HKD 80.5, with an upward trend
target of HKD 96.
Meanwhile, the Chairman of GigaDevice (03986), a Hong Kong listed storage chip concept
stock, announced a reduction in A share holdings, which is expected to cash out
approximately RMB 2.8 billion based on yesterday's closing price. Mak Ka Ka stated that
this move by GigaDevice management to cash out is easily interpreted by the market as
selling at a peak, which will bring pressure to the stock price in the medium term as the
market takes time to digest the news.