23 August 2019

Ukraine fallout hits HSI but wind plays power on

Hong Kong’s benchmark Hang Seng Index (HSI) tumbled Monday and the Russian stock market gave up as much as 9 percent at one point as tension in Ukraine rattled investors.

The HSI shed 336 points, or 1.47 percent, to end the day at 22,500. The Hang Seng China Enterprises Index, the main gauge for H shares, lost 1.41 percent to finish at 9,751. But the Shanghai Composite Index added 0.92 percent to close at 2,075 points.

Blue chips generally ended lower for the day. Funds flew to gold as a safe heaven, sending gold plays higher. Zhaojin Mining Industry (01818.HK) gained 6.8 percent, China Gold International Resources (02099.HK) more than 7 percent and Zijin Mining Group (02899.HK) 3 percent.

Wind power plays also picked up speed with government plans to accelerate development in the sector. Big wind farm operators also said they will raise their installation capacity by 40-60 percent this year. All wind players saw notable increases after Credit Suisse upgraded the sector to “overweight”.

Xinjiang Goldwind Science & Technology (02208.HK) shot up 6.1 percent, China High Speed Transmission Equipment (00658.HK) gained 4.7 percent, and Huadian Fuxin Energy (00816.HK) closed up 3.7 percent to a record high.

China hypermarket operator Sun Art Retail Group (06808.HK) handed in its report card, rising 7.1 percent after revealing a 15 percent increase in profit last year from 2012.

– Contact the writer at [email protected]



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