16 July 2019

HSI dives over 500 points, gaming plays continue winning streak

Hong Kong’s benchmark index lost its momentum and dropped more than 500 points on Friday, after overseas equity markets performed disappointingly the previous day.

The Hang Seng Index dived 522 points or 2.24 percent to finish at 22,817 points. The Hang Seng China Enterprises Index, the main gauge for H shares, slumped over 2.5 percent to 10,436, while the Shanghai Composite Index ended 1.24 percent lower at 2,083 points.

Almost all blue chips ended in red for the day, except for Galaxy Entertainment (00027.HK), which soared as much as 1.7 percent and reached a record high before ending 0.2 percent higher.

Other gaming players also gained. Melco Crown Entertainment (06883.HK) jumped 2.1 percent while MGM China (02282.HK) climbed 1.65 percent, both hitting fresh highs. Wynn Macau (01128.HK) closed 0.86 percent higher.

Coal plays remained in the pits after it was reported that China Shenhua Group will lower its coal contract price to 590 yuan (US$97.49) per ton. China Shenhua Energy (01088.HK) nosedived 4.4 percent, Yanzhou Coal Mining (01171.HK) shed 3.9 percent and China Coal Energy (01898.HK) lost 1.4 percent.

China financial plays also came under heavy selling pressure during the session. China Pacific Insurance Group (02601.HK), PICC Property & Casualty (02328.HK) and China Life Insurance (02628.HK) all dropped over 3 percent.

Meanwhile, Bank of Communications (03328.HK), Industrial & Commercial Bank of China (01398.HK) and China Construction Bank (00939.HK) closed more than 2 percent lower for the day.

– Contact the writer at [email protected]



EJI Weekly Newsletter

Please click here to unsubscribe