23 September 2018

HSI up 2.9% for the week, led by insurance plays

Hong Kong’s benchmark index climbed 115 points or 0.49 percent on Friday to finish at 23,698 points, taking the cue from the US markets where the Dow Jones Index closed above 16,000 points for the first time on Thursday amid signs of an improving economy.

The Hang Seng Index was up 664 points or 2.9 percent for the week. The Hang Seng China Enterprises Index, the main gauge for H shares, rose 1 percent to close at 11,448, while the Shanghai Composite Index ended the day 0.43 percent lower at 2,196 points.

Investors continued to pile into the insurance sector. Ping An Insurance Group (02318.HK) rose 3 percent to hit a fresh two-year high, making it the best performer among the blue chips. Peers China Life Insurance (02628.HK) and New China Life Insurance (01336.HK) also saw notable increases.

China lenders also finished higher, with China Construction Bank (00939.HK) and Bank of China (03988.HK) up more than 1 percent for the day.

Rumors that Fosun International (00656.HK) chairman Guo Guangchang {郭廣昌} had been detained and barred from leaving Hong Kong weighed on the stock, causing it to tumble as much as 7 percent at one point. Shanghai Fosun Pharmaceutical (02196.HK), a subsidiary, dropped as much as 10 percent.

The conglomerate later denied the reports, and the two stocks narrowed their losses to 4.2 percent and 5.7 percent respectively.

Coal plays continued to rise with the coal price. China Shenhua Energy (01088.HK) rallied 1.9 percent, Yanzhou Coal Mining (01171.HK) was up 3.2 percent while China Coal Energy (01898.HK) ended 1 percent higher.

Property developer Glorious Property (00845.HK) resumed trading on Friday after its majority shareholder proposed to privatize the company at HK$1.8 per share, a 45 percent premium to its last trading price of HK$1.24. The counter surged 40 percent at one time before closing 33 percent higher for the day.

– Contact the writer at [email protected]



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