HK Stocks Rise From Five-Month Low as Energy Shares Gain

29-Dec-2016 Intellasia | Bloomberg | 6:00 AM Print This Post

Hong Kong stocks rose, with the benchmark gauge heading for its biggest gain in a month, as banks led a rally by Chinese companies after a technical indicator signaled recent losses were excessive.

The Hang Seng Index added 1 percent to 21,796.34 at 3:37 p.m. local time, rebounding from a five-month low. China Construction Bank Corp. was poised for its biggest gain in 10 months, while Tencent Holdings Ltd jumped 3 percent. Cheung Kong Property Holdings Ltd declined for a sixth day. The Shanghai Composite Index slipped 0.4 percent to its lowest level since October 31.

The most important market news of the day.

Get our markets daily newsletter.

Hong Kong’s benchmark index has slumped 6.6 percent this quarter, the world’s worst performance after the Philippines and New Zealand, as higher borrowing costs undermined the outlook for the city’s property market and a weaker yuan cut foreign demand for Chinese assets. The Hang Seng Index’s relative strength fell earlier Wednesday to 28.5, the lowest since January, and below the 30 level that signals to some traders shares are due to rebound.

China Construction Bank surged 4.8 percent, while Bank of China Ltd climbed 1.8 percent. The Hang Seng China Enterprises Index rallied 1.7 percent, paring its decline in December to 5.1 percent.

Most of Hong Kong’s stock losses occurred in December as the US projected a faster pace of interest-rate hikes next year and China tightened liquidity to ward off bubbles, helping drive the city’s key interbank rate to an eight-year high. Hong Kong’s monetary policy is tied to the Federal Reserve’s through a currency peg.

For the year, the Hang Seng Index is down 0.6 percent, while the Shanghai Composite has lost 12 percent.

Revenues, profits, jobs and capital expenditures in China improved from the third quarter while new orders were stable, according to the private survey released by CBB International, which collects anecdotal accounts similar to those in the Federal Reserve Beige Book.

https://www.bloomberg.com/news/articles/2016-12-28/hong-kong-stocks-trade-at-five-month-low-as-fundings-costs-climb

 


Category: Hong Kong

Print This Post

Comments are closed.