logo
Plus   Neg
Share
Email

Hong Kong Bourse Likely To Slide On Thursday

The Hong Kong stock market on Wednesday halted the three-day slide in which it had declined almost 850 points or 3.3 percent. The Hang Seng Index now rests just above the 25,300-point plateau although it's expected to plummet at the open on Thursday.

The global forecast for the Asian markets is emphatically negative thanks to worrying signs about the health of the global economy. The European and U.S. markets finished sharply lower and the Asian markets are tipped to follow suit.

The Hang Seng finished barely higher on Wednesday as gains from the casinos and financials were offset by weakness from the properties and insurance companies.

For the day, the index rose 20.98 points or 0.08 percent to finish at 25,302.28 after trading between 25,197.38 and 25,717.98.

Among the actives, WH Group plummeted 5.36 percent, while Hang Lung Properties plunged 3.16 percent, Techtronic Industries soared 1.95 percent, Hong Kong & China Gas tumbled 1.82 percent, Tencent Holdings spiked 1.80 percent, New World Development skidded 1.41 percent, China Mengniu Dairy retreated 1.34 percent, AAC Technologies jumped 1.13 percent, China Petroleum and Chemical (Sinopec) climbed 1.09 percent, Galaxy Entertainment perked 0.79 percent, BOC Hong Kong gathered 0.78 percent, CSPC Pharmaceutical shed 0.67 percent, China Mobile sank 0.63 percent, Industrial and Commercial Bank of China collected 0.61 percent, China Life Insurance lost 0.56 percent, Ping An Insurance fell 0.46 percent, Sands China added 0.45 percent, CNOOC gained 0.17 percent, AIA Group eased 0.14 percent and Sun Hing Kai Properties was unchanged.

The lead from Wall Street broadly negative as stocks showed a substantial pullback on Wednesday, sending the major averages to two-month closing lows.

The Dow plummeted 800.49 points or 3.05 percent to 25,479, while the NASDAQ tumbled 242.42 points or 3.02 percent to 7,773.94 and the S&P 500 plunged 85.72 points or 2.93 percent to 2,840.60.

The sell-off on Wall Street came amid concerns about a potential recession after the yield on the benchmark ten-year note dropped below the yield on the two-year note - which is widely seen as an indicator of a recession.

The yield on the closely watched thirty-year bond also showed a notable decrease on the day, tumbling to a new record low.

Crude oil prices cratered Wednesday on increasing worries about the outlook for global demand and concern of a supply glut after data showed that U.S. crude oil inventories rose by 1.6 million barrels last week. West Texas Intermediate tumbled $1.71 or 3.01 percent to $55.02 per barrel.

For comments and feedback contact: editorial@rttnews.com

Market Analysis

Follow RTT