25 September 2018

HSI steadies as gaming plays rebound sharply

The Hong Kong benchmark Heng Sang Index (HSI) took a breather after falling more than 870 points in the three days after the Lunar New Year holiday, but Macau gaming plays continued their roller-coaster ride, regaining lost strength during the session.

The HSI rebounded 153 points or 0.72 percent to 21,423. The Hang Seng China Enterprises Index, the main gauge for H shares, also rose 0.71 percent to 9,537 points.

Macau casino operators rallied Thursday as Goldman Sachs and Deutsche Bank said it was buy-in time for the sector after the sharp drop the day before. Blue chips Sands China (01928.HK) and Galaxy Entertainment (00027.HK) mounted strong recoveries, with Sands up over 10 percent to be the best blue-chip performer of the day. Galaxy Entertainment climbed over 7 percent.

Investors piled into the cement sector as well after Morgan Stanley raised target prices for both China Resources Cement (01313.HK) and Anhui Conch Cement (00914.HK). China Resources Cement added 5.6 percent for the day.

But Lenovo Group (00992.HK) gave up 2.4 percent to finish in the worst shape among the blue chips, as Nomura downgraded its rating from “buy” to “neutral”, saying Lenovo’s acquisition of Motorola Mobility and IBM’s low-end server business would drag it into loss in the short term.

Meanwhile, CITIC 21CN (00241.HK) plunged over 30 percent at one time before ending 24.1 percent lower for the day after Alibaba denied that it would stage a backdoor listing. The decline took CITIC 21CN’s losses to 32 percent over two sessions, making it the worst-performing stock of all.

– Contact the writer at [email protected]



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