Markets

Hong Kong Stock Market Has Negative Lead

(RTTNews) - The Hong Kong stock market has alternated between positive and negative finishes through the last five trading days since the end of the two-day winning streak in which it had gathered more than 230 points or 0.9 percent. The Hang Seng Index now rests just above the 24,970-point plateau and it's predicted to open in the red again on Friday.

The global forecast for the Asian markets is soft on economic growth concerns and coronavirus fears. The European and U.S. markets were down and the Asian markets are tipped to open in similar fashion.

The Hang Seng finished sharply lower on Thursday following losses from the properties, casinos and oil and insurance companies - while the financial sector offered mild support.

For the day, the index tumbled 510.89 points or 2.00 percent to finish at 24,970.69 after trading between 24,919.95 and 25,576.49.

Among the actives, China Life Insurance plummeted 6.09 percent, while Tencent Holdings plunged 5.52 percent, CSPC Pharmaceutical tanked 4.92 percent, AAC Technologies tumbled 4.51 percent, Hang Lung Properties skidded 4.20 percent, WH Group retreated 3.37 percent, China Mengniu Dairy declined 2.87 percent, New World Development surrendered 2.82 percent, Techtronic Industries dropped 2.71 percent, CNOOC sank 1.70 percent, Galaxy Entertainment shed 1.66 percent, Ping An Insurance lost 1.56 percent, China Resources Land fell 1.49 percent, CITIC slid 1.41 percent, China Petroleum and Chemical (Sinopec) dipped 1.19 percent, AIA Group slipped 0.89 percent, BOC Hong Kong collected 0.89 percent, Hap Seng Bank added 0.62 percent, Sands China was down 0.32 percent, Industrial and Commercial Bank of China gained 0.21 percent, China Mobile eased 0.19 percent and Hong Kong & China Gas rose 0.18 percent.

The lead from Wall Street is negative as stocks opened in the red on Thursday and remained there throughout the session.

The Dow shed 135.39 points or 0.50 percent to finish at 26,734.71, while the NASDAQ lost 76.66 points or 0.73 percent to end at 10,473.83 and the S&P 500 fell 10.99 points or 0.34 percent to close at 3,215.57.

The weakness on Wall Street followed the release of a Labor Department report showing the decline in first-time claims for unemployment benefits nearly ground to a halt last week.

The negative sentiment was partly offset by a Commerce Department report showing another substantial increase in retail sales in June, although the data was seen as old news as some states rolled back their reopening plans due to a surge in coronavirus cases.

Crude oil futures settled lower on Thursday on worries about the outlook for near term energy demand after OPEC decided to start tapering production cuts beginning next month. West Texas Intermediate Crude oil futures for August were down $0.45 or 1.1 percent at $40.75 a barrel.

Closer to home, Hong Kong will see Q3 results for its business confidence index later today; in the three months prior, the index score was -37.

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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