Hong Kong Bourse Overdue For Consolidation
(RTTNews) - Ahead of Monday's holiday for the Chung Yeung Festival, the Hong Kong stock market had finished higher in six straight sessions, surging more than 760 points or 3.3 percent along the way. The Hang Seng Index now rests just beneath the 24,920-point plateau although investors are expected to cash in on Tuesday.
The global forecast for the Asian markets is broadly negative thanks to a renewed surge in coronavirus cases and lockdown measures around the globe. The European and U.S. markets were sharply lower and the Asian markets are tipped to open in similar fashion.
The Hang Seng finished modestly higher on Friday as gains from the financials and oil and insurance companies were capped by weakness from the technology stocks.
For the day, the index climbed 132.68 points or 0.54 percent to finish at 24,918.78 after trading between 24,683.25 and 24,970.59.
Among the actives, CNOOC skyrocketed 7.27 percent, while China Petroleum and Chemical (Sinopec) surged 6.67 percent, CSPC Pharmaceutical plummeted 2.95 percent, BOC Hong Kong soared 2.56 percent, China Life Insurance spiked 2.36 percent, Ping An Insurance accelerated 2.31 percent, Xiaomi Corporation tanked 2.24 percent, WuXi Biologics tumbled 2.06 percent, CITIC rallied 1.89 percent, China Mengniu Dairy skidded 1.51 percent, Industrial and Commercial Bank of China jumped 1.27 percent, Hong Kong & China Gas climbed 1.25 percent, China Resources Land sank 1.16 percent, Galaxy Entertainment dropped 1.00 percent, AAC Technologies shed 0.81 percent, China Mobile advanced 0.79 percent, Alibaba Group lost 0.67 percent, New World Development added 0.53 percent, Power Assets perked 0.49 percent, Techtronic Industries fell 0.38 percent, WH Group slid 0.31 percent, AIA Group eased 0.13 percent and Hang Lung Properties and Sands China were unchanged.
The lead from Wall Street is bleak as stocks opened firmly lower on Monday and saw the losses accelerate as the day progressed - extending last week's losses.
The Dow plummeted 649.93 points or 2.29 percent to finish at 27,685.64, while the NASDAQ dropped 189.34 points or 1.64 percent to end at 11,358.94 and the S&P 500 sank 64.42 points or 1.86 percent to close at 3,400.97.
The sell-off on Wall Street comes amid concerns about a record resurgence in coronavirus cases, while White House officials say the pandemic can't be controlled and the administration would instead focus on vaccines and therapeutics.
The spike in new coronavirus cases comes as lawmakers in Washington remain at an impasse over a new stimulus bill. Negotiations continue, but traders appear pessimistic that an agreement on a new relief package will be reached before next week's elections.
Adding to the negative sentiment, the Commerce Department reported an unexpected slump in new home sales last month.
Crude oil prices moved lower in response to the bad news, with West Texas Intermediate sinking $1.17 or 2.94 percent to $38.55.
Closer to home, Hong Kong will provide September figures for imports, exports and trade balance later today. In August, imports were down 5.7 percent on year and exports were down an annual 2.3 percent for a trade deficit of 14.6 billion HKD.
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