(Yicai) July 3 -- The China-listed exchange-traded fund that tracks the Nasdaq 100 Index reached an all-time high, thanks to the upswing in US technology stocks. Analysts believe the ETF could rise at least 10 percent more.

The Huaxia Nasdaq 100 ETF [513300] rose 1.4 percent to close at 1.936 in Shanghai today, after earlier reaching 1.938. The ETF has climbed about 28 percent so far this year.

The Nasdaq 100 Index, which includes 100 of the world’s largest non-financial firms, has gained 19 percent since the start of 2024, exceeding the 20,000 mark for the first time ever yesterday. The share price of US chipmaker Nvidia, one of the index’s main constituents, has skyrocketed 148 percent so far this year.

Historical data show that US stock indexes usually continue to perform well after hitting record highs, Wang Xinjie, a chief investment strategist at Standard Chartered Bank, told Yicai. The average 12-month increase in the Standard & Poor 500 Index, for example, was 13.2 percent after it hit all-time highs, with a median increase of 14.6 percent, Wang noted.

“The Nasdaq 100 Index has been consistently breaking records, with no obvious reference points for further gains after surpassing the 20,000 mark,” said Fawad Razaqzada, senior analyst at Gain Capital Group. “In this context, Fibonacci extensions and measured move objectives become essential tools.

“The Nasdaq has already reached the 200 percent Fibonacci extension of the March- April downsizing at 19,962,” Razaqzada noted. “However, the 261.8 percent Fibonacci extension of the same swing is significantly higher at 20,887, serving as a potential bullish objective.”

Future stock index momentum depends on whether tech shares continue to rise, according to financial institutions. Given the bullish pricing for Amazon, Alphabet, Nvidia, and Tesla, traders and investors are unlikely to bet against another tech-driven surge.

Despite huge gains this year, Nvidia has retreated nearly 13 percent since reaching a record intraday high of USD140.76 on June 20. But the company’s key clients are positive upbeat about capital expenditure on generative artificial intelligence, as its graphics processing units are in short supply, a private equity manager told Yicai.

Editor: Futura Costaglione