25 September 2018

Shipping plays ride high on calmer waters

The Hong Kong benchmark Hang Seng Index (HSI) rebounded for a second day as it followed the mainland market to close higher.

The HSI rose 213 points, or 1 percent, to 21,636. The Hang Seng China Enterprises Index, the main gauge for H shares, added 1.13 percent to 9,645 points. The Shanghai Composite Index closed 0.56 percent higher on the first trading day after the week-long Lunar New Year holiday.

But, the HSI was still down 814 points, or 3.6 percent, for the week.

Blue chips put in a mixed showing Friday, but shipping and terminal players rode high after HSBC Securities said it was optimistic about both sectors. Port operator and transporter China Merchants Holdings International (00144.HK) rose 4.6 percent to be the best performer of the day, underscoring the cargo terminal sector’s market-beating results since 2011.

The news had a ripple effect on related stocks, with shipping players like China Rongsheng Heavy Industries (01101.HK) adding 7.5 percent and Guangzhou Shipyard International (00317.HK) gaining 12.9 percent for the day.

The steadier market saw investors pile funds into internet and mobile payment stocks. Tencent (00700.HK) was up over 4 percent at one time before ending 3.1 percent higher. And Kingdee International Software (00268.HK) gained more than 12 percent.

Electronic payment tools developer China Innovationpay Group (08083.HK) ended the day 11 percent higher, while other players like Tradelink Electronic Commerce (00536.HK), econtext Asia (01390.HK) and Advanced Card Systems (08210.HK) rose in a range of 2.4 percent to 12.4 percent.

Meanwhile, Carson Yeung {楊家誠} resigned his post of executive director and chairman of Birmingham International Holdings (02309.HK), the owner of English soccer team Birmingham City, allowing the company to resume trading after a two-year-plus suspension. The company aims to sell the team, news that dragged the stock down 41.6 percent at one point before ending 34.4 percent lower on the day.

– Contact the writer at [email protected]



EJI Weekly Newsletter

Please click here to unsubscribe