26 March 2019

Tech sector weight drags on HSI

Heavy selling pressure on tech stocks weighed on Hong Kong’s benchmark Hang Seng Index (HSI) Monday, sending the index down 91 points, or 0.41 percent, to 22,132.

The Hang Seng China Enterprises Index, the main gauge for H shares, closed 0.29 percent lower to finish at 9,770. The Shanghai Composite Index, meanwhile, slid 1.62 percent to 2,003 points with news that China will soon relaunch initial public offerings.

The US tech-heavy NADSAQ Index gave up 1.8 percent Friday, putting pressure on blue chip Tencent (00700.HK), which closed 2.9 percent lower for the day.

The industry leader was not alone. Kingsoft (03888.HK) tumbled 6.8 percent after spinning off its internet security software business, Cheetah Mobile, in the United States. Other players like Kingdee International Software (00268.HK), Chinasoft International (00354.HK) and Sinosoft Technology (01297.HK) gave up in a range of 4.5 -7.8 percent.

The losses were even bigger in the mobile gaming sector. IGG Inc. (08002.HK) shed 14.6 percent for the day, Forgame Holdings (00484.HK) ended 8.2 percent lower and Boyaa Interactive International (00434.HK) dived 6.9 percent.

But, China Telecom (00728.HK) fared much better, rising 4.6 percent after revealing that its net profit last year beat expectations to rise 17.9 percent to 5.5 billion yuan (US$880 million). The news also drove up the share price of China Unicom Hong Kong (00762.HK), with the counter ending 3.1 percent higher to become the best-performing blue chip of the day. China Mengniu Dairy, on the other hand, closed 5.1 percent lower to be the worst performer.

Funds piled into South China Holding (00265.HK), sending the counter up by half with news that the major shareholders of the company are in talks to sell their stakes to a third party. 

– Contact the writer at [email protected]


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