Date
25 September 2017

HSI rises 1.3% after Yellen shows dovish side

Hong Kong’s benchmark Hang Seng Index (HSI) was cheered by comments overnight by US Federal Reserve chairwoman Janet Yellen, who made it clear that the Fed will persist with its quantitative easing policy for a while because the US economy remains sluggish.

The HSI gained 297 points, or 1.34 percent, to reach 22,448. The Hang Seng China Enterprises Index, the main gauge for H shares, closed 0.23 percent higher to finish at 10,098. The Shanghai Composite Index added 0.70 percent to close at 2,047 points.

Macau casino operators surged after the government released data showing a 13.1 percent year-on-year increase in gaming revenue last month to MOP35.4 billion (US$4.4 billion), a result in line with expectations. Sands China (01928.HK) gained 9.6 percent and Galaxy Entertainment added 7.9 percent to become two of the best-performing blue chips of the day.

Tencent (00700.HK) also closed 4.4 percent higher.

Meanwhile, China Merchants Holdings (00144.HK) shed nearly 4 percent after it said it plans to raise as much as HK$15.4 billion (US$2 billion) by issuing mandatory convertible securities to repay debt and fund construction. The counter ended in the worst shape of the HSI constituents.

Property developer SOCAM Development (00983.HK) said it might be an acquisition target; the counter shot up 28.4 percent after it resumed trading today.

– Contact the writer at [email protected]

SK

 

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