20 June 2019

Shipping, casino plays drive HSI higher

Hong Kong stocks closed higher Monday, bolstered by gaming plays and shipping counters.

The benchmark Hang Seng Index rose 68 points, or 0.29 percent, to 23,881 points. The Hang Seng China Enterprises Index, the main gauge for H shares, added 0.5 percent to 11,432.

The Shanghai Composite Index gained 0.05 percent to 2,238 points.

Gambling plays continued to track new highs, with Sands China (01928.HK) rising as much as 2.7 percent before closing 1.6 percent higher, a record finish.

Galaxy Entertainment (00027.HK) advanced 0.7 percent while other players in the sector saw notable increases.

Investors piled into Chinese insurers as well. Ping An Insurance (02318.HK) climbed 2.5 percent to a two-year high in intraday trade and held on to a 2 percent gain at the close. Banking stocks had mixed performances.

China Merchants Holdings (00144.HK) surged 5.5 percent, the best performer among blue chips, on the back of rising dry bulk freight rates. The Baltic Dry Index, a gauge of dry bulk commodity shipping costs, has been gaining for the past 10 days, injecting a dose of confidence to the shipping sector.

Sinotrans (00598.HK) and SITC International Holdings (01308.HK) climbed 1.7 percent and 2.1 percent, respectively.

Solar plays tumbled after the European Commission announced an anti-dumping resolution against China’s solar exports. A punitive duty of up to 64.9 percent will be applied to some Chinese solar products.

GCL-Poly Energy Holdings (03800.HK) shed 5.3 percent and Comtec Solar Systems (00712.HK) lost 8.6 percent.

On the other hand, punters bet on the wind power sector, pushing China WindPower Group (00182.HK) 8.7 percent to a two-year high.

Meanwhile, Haier Electronics Group (01169.HK) soared 13.1 percent after reports Alibaba Group invested HK$2.82 billion (US$361 million) in the mainland appliance maker.

– Contact the writer at [email protected]



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