18 April 2019

Coal, property rallies fail to shore up index

Hong Kong stocks closed an up-and-down day marginally lower Thursday, despite gains in the coal and property sectors.

The Hang Seng Index hit a two-year high in the morning but retreated soon after to finish 0.07 percent lower at 23,789 points. The Hang Seng China Enterprises Index, the main gauge for H shares, lost 0.15 percent to close at 11,385.

The Shanghai Composite Index rose 0.83 percent to 2,219 points.

Coal plays rallied after the State Council announced measures to encourage consolidation in the sector, reduce overproduction and ease the tax burden. China Coal Energy (01898.HK) and China Shenhua Energy (01088.HK) both added 1.5 percent.

Property developers rebounded after 13 key cities rolled out a new round of policy tightening. China Resources Land (01109.HK) surged 2.4 percent, the best performer among blue chips. Shimao Property Holdings (00813.HK) closed 3.9 percent higher.

Restaurant chain Tsui Wah Holdings (01314.HK) slumped 5.4 percent after it said profit rose 32 percent to HK$85.5 million (US$11 million) in the six months to September, well below expectations.

– Contact the writer at [email protected]



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