21 January 2019

Game over for mobile gaming plays as investors take profit

Mobile gaming plays went on a free fall Tuesday as investors took profit after a week-long winning streak. The sector was under heavy selling pressure in the afternoon session, with Boyaa Interactive International (00434.HK) nosediving 13.5 percent after gaining a hefty 67.5 percent since Jan. 7. IGG (08002.HK) tumbled more than 12 percent while Forgame Holdings (00484.HK) lost 5.6 percent.

Auto plays also had a rough day after Great Wall Motor (02333.HK) announced it has to delay the release of its Havel H8 model to address technical deficiencies. The counter went south instantly and closed 12.2 percent lower for the day. Other players in the sector followed the downward path with Geely Automobile (00175.HK) finishing 2.1 percent down and Brilliance China Automotive (01114.HK) giving up 2.9 percent.

Hong Kong’s benchmark Hang Seng Index fell 33 points or 0.43 percent to 10,149 points. The Hang Seng China Enterprises Index, the main gauge for H shares, ended 0.33 percent lower at 10,149, and the Shanghai Composite index added 0.86 percent to close at 2,026 points.

Food and beverage manufacturer Tingyi Cayman Islands Holding (00322.HK) dropped 2.9 percent while rival Want Want China Holdings (00151.HK) was down 1.9 percent, becoming two of the worst-performing blue chips.

Meanwhile, property developer Pacific Century Premium Developments (00432.HK) skyrocketed after its shares resumed trading Tuesday. It announced after trading in its shares was suspended Monday that it was in advanced talks to sell a property in Beijing. The counter closed 24.7 percent higher for the day.

– Contact the writer at [email protected]



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