24 May 2019

4G launch gives lift to telecom equipment makers

The Hong Kong stock market had a choppy trading session Thursday, with the benchmark Hang Seng Index falling as much as 165 points before making up some of the losses to end the day 16 points, or 0.07 percent, lower at 23,712.

The Hang Seng China Enterprises Index, the main gauge for H shares, managed to close 0.24 percent higher at 11,395, while the Shanghai Composite Index dropped 0.21 percent to 2,247 points.

Investors piled into telecom equipment makers after mainland authorities launched the country’s 4G era by granting TD-LTE licenses to the nation’s three big carriers. Mobile handset maker SIM Technology Group (02000.HK) jumped 7.4 percent and mobile phone assembler BYD Electronic International (00285.HK) shot up near 20 percent for the day.

The Macau gambling sector also performed better than the broad market during the session. Galaxy Entertainment (00027.HK) rose 1.4 percent and Sands China (01928.HK) climbed 2.7 percent. Macau Legend Development (01680.HK) went so far as to end the day 15.6 percent higher.

Standard Chartered (02888.HK) warned that operating profit at its consumer banking unit will fall this year for the first time in a decade, while revenue will increase “at a low single-digit rate”. The counter tumbled as much as 6 percent on the news and ended the day with a 4.6 percent drop.

British stock market indices and data service provider FTSE Group announced the removal of women’s shoes maker Belle International Holdings (01880.HK) from its China 25 index. The counter dropped 2.8 percent at one time to a three-year low before ending 1.9 percent lower for the day. It was the worst performer among the blue chips.

– Contact the writer at [email protected]



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