16 July 2019

Tencent, China lenders help HSI recoup losses

The Hong Kong stock market endured another day of volatility Friday, with the benchmark Hang Seng Index falling almost 100 points in the morning before clawing back the losses and ending the day 30 points, or 0.13 percent, up at 23,743. But the index was down 138 points, or 0.57 percent, for the week.

The Hang Seng China Enterprises Index, the main gauge for H shares, fell 0.17 percent to 11,376. The Shanghai Composite Index also shed 0.44 percent to finish with 2,237 points.

Mainland tech giant Tencent Holdings (00700.HK) extended its gains and rose 2.6 percent to hit an intraday high. The counter closed 2.1 percent higher for the day and was the best performer of the blue chips. Personal computers and handheld devices maker Lenovo (00992.HK) also rose 1.3 percent.

China lenders got a boost after the three-month Shibor rose to a five-month high of 5.167 percent. Industrial & Commercial Bank of China (01398.HK) and Bank of China (03988.HK) both closed more than 1 percent higher.

Meanwhile, gambling plays halted their gains as investors took profit. Small-cap casino operator Macau Legend Development (01680.HK) took a 17.3 percent dive after reaching its record intraday high. Other players in the sector registered notable declines.

Reports that a new round of talks on coal and electricity contracts will start next week put pressure on mining stocks. China Shenhua Energy (01088.HK), China Coal Energy (01898.HK) and Yanzhou Coal Mining (01171.HK) lost between 1.8 percent and 2.3 percent.

– Contact the writer at [email protected]


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