27 May 2019

Tencent rides high despite sluggish post-holiday trading

Trading volume may have been thin due to the holiday mood but that didn’t stop tech giant Tencent (00700.HK) hitting a new high Friday. Tencent’s bar was raised a day after foreign counterparts Facebook and Yahoo reached 52-week highs in the United States.

The benchmark Hang Seng Index gained 63 points, or 0.28 percent, to 23,243. The index rose 431 points, or 1.8 percent, for the week. The Hang Seng China Enterprises Index, the main gauge for H shares, fell 0.04 percent to 10,830, while the Shanghai Composite Index added 1.36 percent to finish at 2,101 points.

Tech stocks were the best performers on the first post-Christmas trading day. Tencent ended the day 3 percent higher, while mobile game developers Boyaa Interactive International (00434.HK), Forgame Holdings (00484.HK) and IGG Inc. (08002.HK) rose in a range of 1.6 percent to 5.7 percent.

Auto plays Dongfeng Motor (00489.HK) and Guangzhou Automobile (02238.HK) tumbled after investors were spooked by the potential fallout from Japanese Prime Minister Shinzo Abe’s visit to the controversial Yasukuni Shrine Thursday. Dongfeng Motor dropped 4.4 percent and Guangzhou Automobile ended 5.2 percent lower for the day.

Investors were much more interested in piling into funeral service operator Fu Shou Yuan International (01448.HK). The counter shot up 17.4 percent and hit a new high. Fu Shou Yuan has risen over 60 percent since its Dec. 18 debut.

– Contact the writer at [email protected]



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