HKSI Paper 8 Securities analysis question: Lam values Harbour Foods Ltd

HKSI Paper 8Securities analysis

Ms Lam values Harbour Foods Ltd from its annual report and buys because her value exceeds the price. Mr Ho buys the share when it breaks above its 200-day moving average. Which approaches are they using?

A Ms Lam: technical analysis; Mr Ho: fundamental analysis
B Both are using fundamental analysis
C Ms Lam: fundamental analysis; Mr Ho: technical analysis
D Both are using technical analysis

Show the answer and explanation

Answer: C. Ms Lam: fundamental analysis; Mr Ho: technical analysis

Ms Lam works from the company's financial statements to estimate what the share is worth and buys because that value is above the market price. That is fundamental analysis: estimating intrinsic value from company, industry and economic data. Mr Ho ignores the accounts and acts on a price signal, a break above a long-term moving average, which is a technical indicator calculated only from past prices. That is technical analysis. The approaches are different, so neither 'both' option fits, and reversing the labels mixes up which data each investor used. Source: Standard comparison of fundamental and technical analysis; moving averages as a technical indicator (as at October 2026).

Common mistake

Labelling any analysis that uses numbers as fundamental. A moving average is built from past prices, so a trade triggered by it is technical.

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Original study material mapped to the public HKSI Paper 8 syllabus. Unofficial, not endorsed by HKSI Institute or the SFC. Verify figures and rules against current guidance before relying on them.