logo
Plus   Neg
Share
Email

Continued Consolidation Called For Hong Kong Stock Market

The Hong Kong stock market on Monday snapped the three-day winning streak in which it had surged more than 1,900 points or 7.5 percent. The Hang Seng Index now rests just above the 25,930-point plateau and it's likely to see more profit taking on Tuesday.

The global forecast for the Asian markets is murky ahead of U.S. midterm elections later today as weakness from oil and technology stocks will likely cap any upside. The European and U.S. markets were mixed and little changed and the Asian bourses figure to open in similar fashion.

The Hang Seng finished sharply lower on Monday following losses from the financials, properties, casinos and insurance companies.

For the day, the index tumbled 551.96 points or 2.08 percent to finish at 25,934.39 after trading between 25,747.52 and 26,146.81.

Among the actives, AAC Technologies plummeted 7.38 percent, while China Resources Land plunged 4.04 percent, Tencent Holdings tumbled 3.69 percent, Sands China skidded 3.55 percent, WH Group dropped 3.50 percent, AIA Group declined 3.19 percent, Galaxy Entertainment retreated 2.82 percent, Industrial and Commercial Bank of China contracted 2.16 percent, China Life Insurance shed 2.15 percent, BOC Hong Kong lost 2.11 percent, China Mobile fell 1.76 percent, New World Development slid 1.74 percent, Ping An Insurance dipped 1.33 percent, Hong Kong & China Gas and Henderson Land both eased 1.32 percent, China Petroleum and Chemical gained 1.06 percent and CNOOC was down 0.44 percent.

The lead from Wall Street provides little clarity as stocks moved in opposite directions on Monday, with the Dow and the S&P 500 adding to last week's strong gains but the tech-heavy NASDAQ extending the sharp pullback seen last Friday.

The Dow added 190.87 points or 0.76 percent to 25,461.70, while the NASDAQ fell 28.14 points or 0.38 percent to 7,328.85 and the S&P 500 gained 15.25 points or 0.56 percent to 2,738.31.

A notable drop by Apple (AAPL) weighed on the NASDAQ after a report from Japan's Nikkei newspaper said demand for the company's iPhone XR appears to be disappointing.

Overall trading was subdued, with traders reluctant to make significant moves ahead of today's midterm elections, which will decide control of both the House and Senate. Democrats are seen as having a better chance to claim a majority in the House, which would allow them to hinder President Donald Trump's agenda.

The Federal Reserve's looming monetary policy announcement on Thursday also kept traders on the sidelines. While the Fed is widely expected to leave interest rates unchanged, traders will keep a close eye on the accompanying statement for clues about an expected rate hike in December.

Crude oil futures eased Monday, after having moved up earlier in the day as U.S. sanctions on Iranian oil and came into force. Crude oil futures for December ended down $0.04 or less than 0.1 percent at $63.10 a barrel.

For comments and feedback contact: editorial@rttnews.com

Market Analysis

Follow RTT