logo
Plus   Neg
Share
Email

No Relief Yet For Hong Kong Stock Market

The Hong Kong stock market has moved lower in five straight sessions, dropping almost 930 points or 3.1 percent along the way. The Hang Seng Index now rests just above the 26,435-point plateau and it's looking at another soft start again on Monday.

The global forecast for the Asian markets is soft on ongoing trade concerns between the United States and China. The European markets were mixed and the U.S. bourses were down and the Asian markets figure to follow the latter lead.

The Hang Seng finished slightly lower on Friday as losses from the financials, insurance companies and casinos were mitigated by support from the property sector.

For the day, the index dipped 33.23 points or 0.13 percent to finish at 26,435.67 after trading between 26,410.41 and 26,564.36.

Among the actives, CLP Holdings surged 2.57 percent, while AAC Technologies plummeted 2.55 percent, AIA Group plunged 1.37 percent, Sino Land tumbled 1.20 percent, WH Group skidded 1.11 percent, Industrial and Commercial Bank of China collected 0.96 percent, China Petroleum and Chemical (Sinopec) jumped 0.84 percent, Sun Hung Kai Properties climbed 0.70 percent, Galaxy Entertainment dropped 0.68 percent, Techtronic Industries retreated 0.64 percent, CITIC declined 0.60 percent, Ping An Insurance sank 0.69 percent, CSPC Pharmaceutical shed 0.52 percent, Hong Kong & China Gas advanced 0.51 percent, China Mengniu Dairy added 0.50 percent, Henderson Land gained 0.39 percent, China Life Insurance lost 0.32 percent, China Mobile fell 0.31 percent, Tencent Holdings slid 0.24 percent, BOC Hong Kong dipped 0.19 percent, Sands China eased 0.13 percent and Hang Lung Properties, CNOOC and New World Development were unchanged.

The lead from Wall Street is negative as stocks shook off a positive open Friday, fading in the afternoon to finish firmly in the red.

The Dow shed 159.72 points or 0.59 percent to 26,935.07, the NASDAQ lost 65.21 points or 0.80 percent to 8,117.67 and the S&P 500 fell 14.72 points or 0.49 percent to 2,992.07. For the week, the Dow shed 1 percent, the NASDAQ lost 0.7 percent and the S&P 500 fell 0.5 percent.

Stocks skidded on news Chinese trade negotiators canceled a scheduled visit to U.S. farm states this week. The news offset recent optimism about a potential end to the U.S.-China trade war, with the deputy-level talks expected to help pave the way for more productive talks next month.

Uncertainty about the outlook for interest also weighed on stocks, with Boston Federal Reserve President Eric Rosengren arguing that it is not necessary and potentially risky for the central bank to continue lowering rates.

Crude oil futures settled slightly lower on Friday but still managed a gain of nearly 6 percent for the week. West Texas Intermediate crude oil futures for October ended down $0.04 or 0.07 percent at $58.09 a barrel on the expiration day.

Closer to home, Hong Kong is scheduled to release Q2 numbers for current account later today. In the three months prior, the current account showed a surplus of HKD36.57 billion, while the capital account saw a deficit of HKD242 million and the financial account posted a shortfall of HKD4.78 billion.

For comments and feedback contact: editorial@rttnews.com

Market Analysis

Follow RTT
>