17 November 2018

HSI winning streak ends on profit taking

Five days of gains ended Friday for Hong Kong’s benchmark Hang Seng Index (HSI) as investors stepped in to take profits.

The HSI gave up 55 points, or 0.24 percent, to end at 22,510. The index was up 444 points, or 2.01 percent, for the week.

The Hang Seng China Enterprises Index, the main gauge for H shares, rose 0.16 percent to finish at 10,110. The Shanghai Composite Index added 0.74 percent to close at 2,058 points.

Tencent (00700.HK) came under heavy selling pressure to be the session’s worst-performing blue chip, shedding as much as 6.3 percent before ending 3.9 percent lower.

Meanwhile, market operator Hong Kong Exchanges and Clearing (00388.HK) climbed 2.9 percent to be the day’s best-performing HSI constituent.

HKEx issued a statement Friday afternoon, noting more media speculation on its possible links with the Shanghai Stock Exchange. But the group said its position remains unchanged from its previous announcement that neither confirmed nor denied a tie-up.

Meanwhile, funds piled into the oil sector, with both CNOOC (00883.HK) and PetroChina (00857.HK) closing more than 1 percent higher.

But mainland property players slumped after reports that the city of Changsha has denied plans to ease restrictions on the housing market. Country Garden (02007.HK) dropped 5.6 percent, Guangzhou R&F Properties (02777.HK) fell more than 3 percent and KWG Property (01813.HK) closed over 2 percent lower.

Kingsoft (03888.HK) shed about 4.5 percent after the software player said it planned to issue as much as 2.27 billion yuan (US$365 million) in convertible bonds.

– Contact the writer at [email protected]



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