Date
18 August 2017

Festive spirit helps HSI end losing run

Hong Kong stocks ended a four-day losing run Wednesday, buoyed by a festive hype that is creating waves in the mainland.

The benchmark Hang Seng Index climbed 180 points or 0.82 percent to 22,141 after losing ground in the past four sessions. The Hang Seng China Enterprises Index, the main gauge for H shares, rose 1.37 percent to 9,898.

The Shanghai Composite index rallied 0.56 percent higher to 2,049 points.

Tech giant Tencent spiked 5.7 percent on the back of a Lunar New Year promotion that allows users of its instant messaging platforms Weixin or WeChat and its Tenpay payment service to give or receive red packets. Credit Suisse maintained its target price on the counter.

Meanwhile, Hengan International (01044.HK) soared 6.9 percent after JP Morgan raised its target price and upgraded its rating from “neutral” to “overweight”. It was the best performer among blue chips.

JP Morgan expects the company’s baby diaper business to achieve strong growth to support the target price. A 20 percent fall in the past two months was more a reflection of overproduction in the industry than any weakness in the stock’s fundamentals, it said.

Hong Kong Television Network (01137.HK) put on 7.25 percent after losing nearly 28 percent in the past month. Chairman Ricky Wong {王維基} said the company will set up rooftop transmitters in 300 to 400 buildings rather than lease transmission stations from Television Broadcast (00511.HK).

Meanwhile, HK Electric-SS (02638.HK), a spin-off from Power Assets Holdings (00006.HK), debuted below its offer price, closing 2 percent lower.

– Contact the writer at [email protected]

RA

 

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