19 September 2018

Oil, property plays weigh on stocks in choppy trade

Hong Kong and mainland stocks closed lower in choppy trade Tuesday as oil plays and property counters reeled from negative developments across the border.

The benchmark Hang Seng Index gave back a 67-point intraday gain to finish 0.01 percent lower at 23,681 points. The Hang Seng China Enterprises Index, the main gauge for H shares, slipped 0.75 percent to 11,302 and the Shanghai Composite Index ended the day 0.14 percent lower at 2,183 points.

China Petroleum and Chemical Corp. (00386.HK) lost 2.6 percent after seven of its staff were detained in an investigation into a deadly pipeline explosion in Qingdao. It was the worst performer among blue chips.

A wave of selling swept Chinese raw milk producer YuanShengTai Dairy (01431.HK) on its debut, driving the stock down 4.4 percent at the open before settling 3.7 percent lower at the close.

Other dairy plays tumbled, notably Yashili International (01230.HK) and China Huishan Dairy (06863.HK) which both fell more than 2 percent.

Property developers Country Garden Holdings (02007.HK), Guangzhou R&F Properties (02777.HK) and Agile Property Holdings (03383.HK) each slipped more than more 1 percent on news China’s second-tier cities will continue to tighten property restrictions amid a spike in home prices. 

– Contact the writer at [email protected]



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