Plus   Neg

Hong Kong Bourse May Test Support At 27,000 Points

The Hong Kong stock market has finished lower in three straight sessions, tumbling more than 680 points or 2.5 percent along the way. The Hang Seng Index now rests just beneath the 27,120-point plateau and it's in line for further consolidation on Monday.

The global forecast for the Asian markets is slightly negative, although technology stocks are likely to weigh. The European and U.S. market were down and the Asian bourses are predicted to follow suit.

The Hang Seng finished modestly lower on Friday as losses from the properties, casinos and insurance companies were mitigated by support from the oil companies.

For the day, the index dropped 176.35 points or 0.65 percent to finish at 27,118.35 after trading between 27,051.75 and 27,275.88.

Among the actives, WH Group plummeted 2.00 percent, while Henderson Land plunged 1.95 percent, AIA Group tumbled 1.67 percent, Tencent Holdings skidded 1.26 percent, CSPC Pharmaceutical retreated 1.04 percent, BOC Hong Kong declined 0.98 percent, Sands China dropped 0.96 percent, China Mobile shed 0.94 percent, New World Development lost 0.84 percent, Ping An Insurance fell 0.68 percent, China Life Insurance sank 0.66 percent, China Petroleum and Chemical (Sinopec) advanced 0.59 percent, CITIC slid 0.19 percent, CNOOC added 0.16 percent, Hong Kong & China Gas was down 0.12 percent and Industrial and Commercial Bank of China was unchanged.

The lead from Wall Street is soft as stocks opened lower on Friday, staged a mild recovery in afternoon trade but still finished in the red.

The Dow shed 17.19 points or 0.07 percent, while the NASDAQ lost 40.47 points or 0.562 percent to 7,796.66 and the S&P fell 4.66 points or 0.16 percent to 2,886.98. For the week, the Dow added 0.4 percent, the NASDAQ rose 0.7 percent and the S&P advanced 0.5 percent.

Tech stocks came under pressure after Broadcom (AVGO) reported better than expected fiscal second quarter earnings but lowered its full-year revenue guidance due to ongoing geopolitical uncertainties.

In economic news, the Commerce noted a solid gain in retail sales in May and a strong upward revision in April. Also, the Federal Reserve noted a bigger than expected increase in industrial production in May, although the University of Michigan said its reading on consumer sentiment dropped in June.

Crude oil prices moved up Friday amid rising geopolitical tensions following the recent attacks on two oil tankers in the Gulf of Oman. West Texas Intermediate crude oil futures for July ended up $0.23 or 0.4 percent at $52.51 a barrel. For the week, WTA crude oil futures shed 2.7 percent.

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