18 August 2019

HSI takes a breather as tech, software investors cash in

The Hang Seng Index took a breather from a two-day winning run as investors grabbed profits from technology-related stocks.

Hong Kong’s benchmark index gave up 114 points, or 0.52 percent, to close at 21,732 points Tuesday. The Hang Seng China Enterprises Index, the main gauge for H shares, lost 0.04 percent to 9,690. The Shanghai Composite Index rose 0.05 percent to 2,067 points.

Market sentiment turned sour after social network behemoth Facebook (FB.US) tumbled 4.7 percent overnight on NASDAQ. Tencent experienced heavy selling pressure during the session and ended 4.9 percent lower, the worst performing blue chip.

Other software plays tracked lower as well. Kingdee International Software (00268.HK) took a nosedive and finished 6.7 percent lower. Kingsoft (03888.HK) was down almost 4.4 percent.

Third-party payment platforms and mobile gaming stocks fared no better. China Innovationpay Group (08083.HK) yielded 9 percent while Boyaa Interactive International (00434.HK) and IGG Inc. (08002.HK) fell 9.5 percent and 5 percent, respectively.

Meanwhile, Wharf Holdings (00004.HK) soared 3 percent, leading all blue chips, as subsidiary I-CABLE Communications (01097.HK) climbed 22 percent for the day.

– Contact the writer at [email protected]



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