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Hong Kong Stocks Overdue For Correction

The Hong Kong stock market has finished higher now in 10 consecutive sessions, skyrocketing more than 1,685 points or 5.6 percent along the way. The Hang Seng Index now rests just beneath the 30,900-point plateau although it may spin its wheels on Tuesday.

The global forecast for the Asian markets is mixed as many of the regional bourses are overbought and overdue for profit taking although the oil and technology stocks are expected to provide continued support. The European and U.S. markets were mixed but little changed and the Asian markets figure to follow that lead.

The Hang Seng finished modestly higher on Monday as gains from the casinos were capped by weakness from the insurance and oil companies.

For the day, the index added 84.89 points or 0.28 percent to finish at 30,899.53 after trading between 30,732.54 and 30,929.15.

Among the actives, China Mengniu Dairy surged 4.46 percent, while China Resources Land soared 3.02 percent, Lenovo Group spiked 2.20 percent, Sino Land jumped 1.80 percent, CITIC climbed 1.58 percent, CNOOC tumbled 1.32 percent, Sands China advanced 1.27 percent, Galaxy Entertainment gathered 1.27 percent, China Life skidded 1.02 percent, AIA Group dropped 0.89 percent, New World Development shed 0.65 percent, Henderson Land fell 0.28 percent, WH Group lost 0.22 percent, Industrial and Commercial Bank of China eased 0.15 percent, China Mobile dipped 0.06 percent and Ping An Insurance, Hong Kong & China Gas and China Petroleum and Chemical (Sinopec) all were unchanged.

The lead from Wall Street is inconclusive as stocks turned in a lackluster performance on Monday, lingering near the unchanged line before closing mixed.

The Dow shed 12.87 points or 0.05 percent to 25,283.00, while the NASDAQ climbed 20.83 points or 0.29 percent to 7,157.39 and the S&P 500 rose 4.56 points or 0.17 percent to 2,747.71.

The choppy trading came as traders expressed uncertainty about the near-term outlook for the markets after the recent run to record highs. A lack of economic data also kept traders on the sidelines, while earnings season is also about to begin.

Oil service stocks showed a significant move to the upside, driving the Philadelphia Oil Service Index up by 1.9 percent. The strength came amid an increase by the price of crude oil, with crude for February delivery rising $0.29 to $61.73 a barrel.

by RTT Staff Writer

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