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Bargain Hunting Expected For Hong Kong Stock Market

The Hong Kong stock market has finished lower in four straight sessions, plummeting more than 1,470 points or 7.1 percent along the way. The Hang Seng now rests just above the 19,630-point plateau although it's overdue for support on Wednesday.

The global forecast for the Asian markets is mostly higher, with bargain hunting limited by concerns about economic growth and interest rates. The European markets were up and the U.S. bourses were mixed and the Asian markets figure to split the difference.

The Hang Seng finished sharply lower again on Tuesday following losses from the financials, properties, oil companies and technology stocks.

For the day, the index plunged 368.27 points or 1.84 percent to finish at 19,633.69 after trading between 19,178.89 and 19,758.63.

Among the actives, AAC Technologies rose 0.12 percent, while Alibaba Group tanked 4.81 percent, Alibaba Health Info skidded 2.11 percent, ANTA Sports retreated 2.75 percent, China Life Insurance dipped 0.71 percent, China Mengniu Dairy climbed 1.04 percent, China Petroleum and Chemical (Sinopec) dropped 2.05 percent, China Resources Land slipped 0.58 percent, CITIC was down 0.37 percent, CNOOC surrendered 3.49 percent, Country Garden plummeted 10.51 percent, CSPC Pharmaceutical shed 1.95 percent, Galaxy Entertainment tumbled 3.71 percent, Hang Lung Properties weakened 2.32 percent, Henderson Land fell 1.42 percent, Hong Kong & China Gas lost 1.52 percent, Industrial and Commercial Bank of China slid 0.87 percent, JD.com plunged 8.21 percent, Lenovo soared 2.93 percent, Meituan declined 3.31 percent, New World Development slumped 2.39 percent, Techtronic Industries surged 5.23 percent, Xiaomi Corporation stumbled 2.52 percent, WuXi Biologics sank 1.98 percent and Li Ning was unchanged.

The lead from Wall Street is murky as the major averages spent most of Tuesday bouncing back and forth across the unchanged line before finally settling on opposite sides.

The Dow shed 84.96 points or 0.26 percent to finish at 32,160.74, while the NASDAQ jumped 114.42 points or 0.98 percent to end at 11,737.67 and the S&P 500 added 9.81 points or 0.25 percent to close at 4,001.05.

The volatility came as traders continued to debate whether the markets have reached their bottom following the recent sell-off.

Bargain hunting contributed to early strength on Wall Street as some traders looked to pick up stocks at reduced levels. Buying interest waned over the course of the morning, however, as traders were wary about inflation, higher interest rates and the outlook for the global economy.

Stocks continued to fluctuate over the course of the session as traders looked ahead to the release of key inflation data in the coming days. The latest snapshot of inflation could impact expectations regarding how aggressively the Federal Reserve plans to raise interest rates.

Crude oil prices fell sharply on Tuesday, extending losses from the previous session amid concerns over a likely drop in energy demand. A stronger dollar weighed as well on oil prices. West Texas Intermediate Crude oil futures for June ended lower by $3.33 or 3.2 percent at $99.76 a barrel, a two-week low.

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