24 May 2019

HSI takes a breather while nuclear power, cement plays jump

After closing above 24,000 points Monday, investors spent Tuesday taking profit, putting selling pressure on the Hong Kong benchmark index. The Hang Seng Index fell 128 points, or 0.53 percent, to 23,901.

The Hang Seng China Enterprises Index, the main gauge for H shares, ended 0.86 percent lower to close at 11,448, while the Shanghai Composite Index was up 0.69 percent to 2,222 points.

Personal hygiene products manufacturer Hengan International (01044.HK) dropped over 2 percent and was the worst blue-chip performer, while casino operator Sands China (01928.HK) rose 2.5 percent for the day to become the best of the blue chips.

Cement manufacturers climbed after the mainland cement price put in eight consecutive weeks of increases. China Shanshui Cement (00691.HK), Anhui Conch Cement (00914.HK) and China Resources Cement (01313.HK) all saw notable gains in a range of 1.6 percent to 5.6 percent.

Nuclear power equipment plays were also cheered by Premier Li Keqiang’s {李克強} announcement during a visit by his British counterpart, David Cameron, that China wants to be involved in Britain’s high-speed-rail rollout and nuclear power projects.

Dongfang Electric Corp (01072.HK) closed more than 11 percent higher for the day. Shanghai Electric Group (02727.HK) was up 9.1 percent and Harbin Electric Co. (01133.HK) rose 8.2 percent.

Hutchison Whampoa (00013.HK) ended the day 2.4 percent higher at HK$102.30, the first time the counter has closed higher than HK$100 since July 2000.

Printing services provider eprint Group (01884.HK) kicked off its IPO Tuesday but investors weren’t tempted. The counter closed 7.7 percent lower than its offering price.

– Contact the writer at [email protected]



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