23 October 2018

HSI dips 150 points as A shares get a lift

Hong Kong’s benchmark index ended Tuesday 0.65 percent lower while the mainland stock market hitched a lift on speculation of new shale gas tenders.

The Hang Seng Index shed 150 points to 23,038 and the Hang Seng China Enterprises Index fell to 10,637 points, ending 0.46 percent lower for the day.

But the Shanghai Composite Index rose 0.35 percent to 2,157 points and the ChiNext index, the NASDAQ-style exchange for high-growth, hi-tech start-ups, closed more than 3 percent higher.

Some players in the resources sector were cheered by reports that Beijing will start to issue shale gas mining tenders as soon as the end of this year. Gas equipment maker CIMC Enric Holdings (03899.HK) shot up 4.6 percent, drilling rig manufacturer Honghua Group (00196.HK) rose 3.4 percent and Anton Oilfield Services Group (003337.HK) added 1.7 percent.

HSBC (00005.HK) was one of the few blue chips to rise in the trading session. It closed 1.5 percent higher after saying that it would retain its present dividend policy.

Investors also started to pile funds into the car sector after a weeklong drop. Great Wall Motor (02333.HK) jumped over 5 percent; and Brilliance China Automotive (01114.HK) and BYD Co. (01211.HK) both found themselves 4 percent higher for the day.

Meanwhile, an oil scandal in Taiwan took a bite out of the share price of instant noodle producer Tingyi Cayman Islands Holdings (00322.HK), which lost as much as 4 percent during the day before closing 1.8 percent lower for the day. Rival Uni-President (00151.HK) slid 4.9 percent and was the worst performer among the blue chips.

– Contact the writer at [email protected]



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