Markets

Hong Kong Bourse May Be Stuck In Neutral On Monday

(RTTNews) - The Hong Kong stock market bounced higher again on Friday, one day after it had ended the two-day winning streak in which it had jumped more than 550 points or 2.3 percent. The Hang Seng Index now rests just above the 24,385-point plateau and it's expected to remain rangebound on Monday.

The global forecast for Asian markets is murky, clouded by uncertainty regarding stimulus in the United States. 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 modestly higher on Friday as gains from the financials, insurance companies and technology stocks were capped by weakness from the property sector.

For the day, the index climbed 229.29 points or 0.94 percent to finish at 24,386.79 after trading between 24,194.41 and 24,456.97.

Among the actives, CSPC Pharmaceutical plummeted 5.06 percent, while Industrial and Commercial Bank of China surged 4.25 percent, China Life Insurance soared 3.82 percent, CITIC spiked 3.73 percent, Alibaba rallied 3.23 percent, Xiaomi accelerated 3.12 percent, China Mengniu Dairy plunged 2.37 percent, Hang Lung Properties tanked 1.90 percent, WuXi Biologics jumped 1.79 percent, Sands China climbed 1.11 percent, Galaxy Entertainment gathered 1.08 percent, Hong Kong & China Gas tumbled 1.07 percent, Henderson Land skidded 1.03 percent, Ping An Insurance perked 0.91 percent, BOC Hong Kong collected 0.71 percent, AIA Group sank 0.70 percent, Techtronic Industries advanced 0.67 percent, China Mobile dropped 0.50 percent, AAC Technologies added 0.46 percent, China Resources Land shed 0.28 percent, WH Group gained 0.16 percent, CNOOC lost 0.14 percent, New World Development fell 0.13 percent, Power Assets rose 0.12 percent, Sun Hung Kai Properties dipped 0.05 percent and China Petroleum and Chemical (Sinopec) and Hengan International were unchanged.

The lead from Wall Street is uninspired after stocks opened higher on Friday but faded as the day progressed, eventually ending mixed.

The Dow added 112.11 points or 0.39 percent to finish at 28,606.31, while the NASDAQ sank 42.34 points or 0.36 percent to end at 11,671.56 and the S&P 500 rose 0.47 points or 0.01 percent to close at 3,483.81. For the week, the Dow rose 0.1 percent, the NASDAQ gained 0.8 percent and the S&P was up 0.2 percent.

The late-day pullback on Wall Street reflected lingering uncertainty about a new stimulus bill, with the slump also being attributed to the expiration of equity options.

The rally in early trading came as better than expected retail sales data tempered concerns the economic recovery may be stalling. Also, the University of Michigan reported a bigger than expected improvement in consumer sentiment in October.

Buying interest was also generated after Pfizer (PFE) Chairman and CEO Albert Bourla said the drug giant will apply for emergency use of the Covid-19 vaccine it is developing with BioNTech (BNTX) soon after the safety milestone is achieved in the third week of November.

Crude oil prices ended marginally lower on Friday as worries about the demand outlook amid the continued surge in coronavirus cases weighed on the commodity. West Texas Intermediate Crude oil futures for November ended down $0.08 or 0.2 percent at $40.88 a barrel.

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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