Hong Kong Bourse Overdue For Consolidation
(RTTNews) - The Hong Kong stock market has moved higher in three straight sessions, accelerating more than 770 points or 3 percent along the way. The Hang Seng Index now rests just above the 27,090-point plateau although investors figure to lock in gains on Wednesday.
The global forecast for the Asian markets is mixed to lower, with tech shares offering mild support against pessimism regarding a trade deal between the United States and China - as well as plummeting crude oil prices. The European and U.S. markets were mostly lower and the Asian bourses figure to follow that lead.
The Hang Seng finished sharply higher on Tuesday following gains from the financial shares, property stocks and insurance companies.
For the day, the index surged 412.71 points or 1.55 percent to finish at the daily high of 27,093.80 after trading as low as 26,605.63.
Among the actives, AAC Technologies skyrocketed 6.10 percent, while CSPC Pharmaceutical surged 3.65 percent, Wharf Real Estate soared 3.24 percent, Techtronic Industries spiked 3.01 percent, China Mengniu Dairy accelerated 2.92 percent, China Resources Land jumped 2.54 percent, WH Group climbed 2.26 percent, Tencent Holdings gathered 2.00 percent, New World Development perked 1.89 percent, Galaxy Entertainment advanced 1.80 percent, Sun Hung Kai Properties increased 1.47 percent, Industrial and Commercial Bank of China collected 1.40 percent, BOC Hong Kong added 1.31 percent, AIA Group gained 1.27 percent, Hong Kong & China Gas rose 1.20 percent, China Mobile was up 0.97 percent, CITIC gained 0.79 percent, China Life Insurance climbed 0.72 percent, Ping An Insurance picked up 0.71 percent, China Petroleum and Chemical (Sinopec) added 0.45 percent, Sands Chis lost 0.39 percent and CNOOC dipped 0.33 percent.
The lead from Wall Street is murky as stocks showed a lack of direction Tuesday, bouncing back and forth across the unchanged line before eventually ending the session mixed.
The Dow shed 102.24 points or 0.36 percent to 27,933.98, while the NASDAQ rose 20.72 points or 0.24 percent to 8,570.66 and the S&P 500 fell 1.85 points or 0.06 percent to 3,120.18.
Stocks initially moved to the upside amid recent upward momentum, which has helped propel stocks to record highs amid unshakable optimism about a potential U.S.-China trade deal. Buying interest waned shortly after the start of trading, however, with disappointing results from Home Depot (HD) offsetting the positive sentiment.
In economic news, the Commerce Department noted a substantial rebound in new residential construction and building permits in October.
Crude oil prices plunged sharply on Tuesday amid rising concerns about excess supply in the market and uncertainty about the U.S. and China trade deal. West Texas Intermediate Crude oil futures for December ended down $1.84 or 3.2 percent at $55.21 a barrel.