21 February 2019

Stocks lose ground on heavy tech selling

Hong Kong stocks retreated Monday on heavy selling in technology counters after the NASDAQ index took a freefall overnight Friday. 

The Hang Seng Index lost 130 points, or 0.59 percent, to close at 22,377. The Hang Seng China Enterprises Index, the main gauge for H shares, rose 0.46 percent to finish at 10,156.

Mainland stock markets were closed Monday due to the Ching Ming festival holiday.

Technology behemoth Tencent (00700.HK) tumbled as much as 5.3 percent before closing 4.5 percent lower as investors took a cue from tech-heavy NASDAQ which blew 2.6 percent of its value at Friday’s close. The news created a ripple effect across the sector.

Software players Kingsoft (03888.HK) slumped 6.2 percent and Kingdee International Software (00268.HK) gave up 4.9 percent. Funds came under siege, with third-party payment platforms China Innovationpay Group (08083.HK) plunging 13.6 percent and PAX Global Technology (00327.HK) tumbling 5.7 percent.

Investors also dumped Macau casino stocks. Galaxy Entertainment (00027.HK) closed 5.6 percent lower, the worst performing blue chip for the day. Sands China (01928.HK) fell 4.9 percent.

However, carmakers were in favor, led by Brilliance China Automotive (01114.HK) which surged 4.7 percent. Geely Automobile (00175.HK), Dongfeng Motor Group (00489.HK) and Great Wall Motor (02333.HK) rose in a range of 1.5 percent to 3.6 percent.

CITIC 21CN (00241.HK) was off 8.2 percent, pending the result of a shareholder vote on a takeover offer from Alibaba.

– Contact the writer at [email protected]


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