Markets

Continued Consolidation Anticipated For Hong Kong Stock Market

(RTTNews) - The Hong Kong stock market headed south again on Monday, one session after it had ended the two-day losing streak in which it had stumbled almost 400 points or 1.7 percent. The Hang Seng Index now rests just above the 23,950-point plateau and it's tipped to open in the red again on Tuesday.

The global forecast for the Asian markets is broadly negative on rising coronavirus concerns and the resulting slide in crude oil prices. The European and U.S. markets were firmly in the red and the Asian bourses are tipped to follow suit.

The Hang Seng finished sharply lower on Monday with damage across the board - especially the casinos, properties and oil and insurance companies.

For the day, the index plunged 504.72 points or 2.06 percent to finish at 23,950.69 after trading between 23,928.02 and 24,542.55.

Among the actives, Sands China plummeted 4.83 percent, while Galaxy Entertainment plunged 4.76 percent, AAC Technologies cratered 3.32 percent, New World Development tanked 3.18 percent, Sino Land tumbled 3.06 percent, China Life Insurance skidded 2.80 percent, WH Group retreated 2.53 percent, CNOOC declined 2.29 percent, AIA Group surrendered 2.12 percent, CITIC sank 2.05 percent, CSPC Pharmaceutical dropped 1.65 percent, Tencent Holdings shed 1.62 percent, Ping An Insurance lost 1.43 percent, BOC Hong Kong fell 1.39 percent, China Petroleum and Chemical (Sinopec) slid 1.20 percent, Industrial and Commercial Bank of China dipped 1.18 percent, China Mobile slipped 1.05 percent, Hong Kong & China Gas weakened 0.88 percent, China Mengniu Dairy was down 0.43 percent, Power Assets eased 0.36 percent and CLP Holdings rose 0.14 percent.

The lead from Wall Street is soft as stocks opened sharply lower on Monday and remained in the red throughout the day, extending losses to a fourth straight session.

The Dow plummeted 509.72 points or 1.84 percent to finish at 27,147.70, while the NASDAQ dipped 14.48 points or 0.13 percent to end at 10,778.80 and the S&P 500 sank 38.41 points or 1.16 percent to close at 3,281.06.

The sell-off on Wall Street comes amid concerns about a renewed surge in coronavirus cases in Europe, with the U.K. reportedly considering another lockdown.

The death of Supreme Court Justice Ruth Bader Ginsburg may also be weighing on the markets, as a fight over the nomination of her replacement could lead to further delays in the passage of another coronavirus relief bill.

Crude oil prices fell sharply Monday on worries about outlook for energy demand amid rising coronavirus cases in Europe. West Texas Intermediate Crude oil futures for October shed $1.80 or 4.4 percent to settle at $39.31 a barrel.

Closer to home, Hong Kong will release Q2 figures for current account later today; in the three months prior, the current account deficit was HKD9.0 billion.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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