23 August 2019

HSI declines 5% in first quarter as CITIC Pacific soars

Hong Kong’s benchmark Hang Seng Index (HSI) finished the first quarter nearly 5 percent or 1,155 points lower even as it closed higher after a bumpy trading session on the last day of March.

The HSI rose 85 points or 0.39 percent to 22,151 on Monday. The Hang Seng China Enterprises Index, the main gauge for H shares, also closed 0.73 percent higher to finish at 10,075. The Shanghai Composite Index slipped 0.41 percent to end at 2,033 points.

CITIC Pacific (00267.HK) was the best performing blue chip for the month and also for the quarter, gaining 23 percent in March and 16 percent for the quarter, as its parent CITIC Group prepares for a back-door listing through the Hong Kong-based unit.

CNOOC (00883.HK), one of the three oil giants in China, missed estimates for its 2013 financial results, putting heavy selling pressure on the counter. CNOOC tumbled 5.3 percent to become the worst performing blue chip of the day.

Funds continued piling in the auto sector with most of the players, particularly parts makers, seeing notable increases. Xinchen China Power (01148.HK) jumped 8.3 percent while Nexteer Automotive (01316.HK) climbed 6.8 percent. Geely Automobile (00175.HK), Brilliance China Automotive (01114.HK), BYD (01211.HK) and Great Wall Motor (02333.HK) ended 3.2 to 6.3 percent higher.

China department chain store Intime Retail (01833.HK) had a roller-coaster ride. The counter surged 16.3 percent right after the market opened on news that Alibaba will invest HK$5.37 billion (US$692 million) in the group to become its second largest shareholder. However, the counter lost steam and slumped 7.53 percent for the day.

– Contact the writer at [email protected]



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