logo
Plus   Neg
Share
Email

Hong Kong Stock Market Expected To Halt Slide On Wednesday

The Hong Kong stock market has finished lower in consecutive trading days, plummeting more than 740 points or 3 percent along the way. The Hang Seng Index now rests just above the 23,715-point plateau although it's tipped to open in the green on Wednesday.

The global forecast for the Asian markets is positive, with bargain hunting expected after days of heavy selling while optimism for additional stimulus added to the positive sentiment. The European markets were mixed and the U.S. bourses were up and the Asian markets figure to follow the latter lead.

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

For the day, the index plunged 233.84 points or 0.98 percent to finish at 23,716.85 after trading between 23,675.62 and 23,908.51.

Among the actives, Galaxy Entertainment plummeted 3.27 percent, while CITIC plunged 3.22 percent, Sands China tanked 2.54 percent, CNOOC tumbled 2.35 percent, China Petroleum and Chemical (Sinopec) skidded 2.13 percent, WH Group retreated 1.68 percent, Hong Kong & China Gas declined 1.24 percent, China Mengniu Dairy jumped 1.14 percent, AIA Group surrendered 1.09 percent, Alibaba Group climbed 1.07 percent, CSPC Pharmaceutical sank 1.03 percent, Industrial and Commercial Bank of China dropped 0.95 percent, BOC Hong Kong shed 0.94 percent, China Mobile lost 0.77 percent, Xiaomi Corporation fell 0.73 percent, Ping An Insurance slid 0.61 percent, China Life Insurance dipped 0.44 percent, AAC Technologies slipped 0.34 percent and China Resources Land was down 0.28 percent.

The lead from Wall Street is firm as stocks shook off a sluggish start on Tuesday to finish solidly in the green, halting a three-day slide.

The Dow climbed 140.48 points or 0.52 percent to finish at 27,288.18, while the NASDAQ spiked 184.84 points or 1.71 percent to end at 10,963.64 and the S&P 500 jumped 34.51 points or 1.05 percent to close at 3,315.57.

The strength on Wall Street came after Federal Reserve Chair Jerome Powell said the central bank remains "committed to using our tools to do what we can, for as long as it takes, to ensure that the recovery will be as strong as possible."

Although worries about rising coronavirus cases persisted and reports of fresh lockdown restrictions in some countries raised concerns about growth, bargain hunting and short-covering after Monday's sharp setback pushed stock prices higher.

In economic news, the National Association of Realtors reported that existing home sales in the U.S. climbed to their highest level in nearly fourteen years in August.

Crude oil futures saw a technical rebound on Tuesday, although it was limited by worries about the outlook for energy demand amidst new coronavirus cases in Europe. West Texas Intermediate Crude oil futures for November ended higher by $0.26 or 0.7 percent at $39.80 a barrel.

For comments and feedback contact: editorial@rttnews.com

Market Analysis

Follow RTT