Hong Kong Market extends gain

The Hong Kong share market ended mild higher on Friday, 30 August 2019, after trimming intraday gains during late afternoon on caution ahead of China's official factory activity data due on Saturday which is expected to contract for a fourth straight month in August. Market rose in morning on signs of tentative easing in the trade dispute between the world's two largest economies after positive signals from Beijing on US-China trade. At closing bell, the Hang Seng Index added 0.08%, or 21.23 points, to 25,724.73. The Hang Seng China Enterprises Index was up 0.91%, or 90.56 points, to 10,0834. For the month, Hang Seng Index dropped 7.4%, the second straight monthly loss after a smaller 2.68% decline in July.

City's market commenced trading in firm footing as signs of tentative easing in the trade dispute between the world's two largest economies provided some cheer to risk sentiment. Chinese commerce ministry spokesman Gao Feng said on Thursday that Beijing hopes Washington can cancel the planned tariff increase to avoid an escalation in the trade war. U.S. President Donald Trump said some discussions took place on Thursday, with more talks scheduled. However, local market trimmed gains late afternoon on caution ahead of Factory activity data which is expected to contract for a fourth straight month in August.

Blue chips were mostly higher. HSBC (00005) edged up 0.3% to HK$56.3. HKEX (00388) softened 1% to HK$240. Tencent (00700) put on 1.4% to HK$324.8. China Mobile (00941) fell 0.2% to HK$64.95 as the company launched the first self-branded 5G smartphone. AIA (01299) dipped 0.5% to HK$76.25.

Shares of smartphone components makers jumped as President Trump said US and China to resume trade talks on Thursday "at a different level". Sunny Optical (02382) shot up 4% to HK$108.7. AAC Technologies (02018) added 0.4% to HK$33.9. Q Technology (01478) gained 1.4% to HK$7.23. BYD Electronic (00285) ascended 1.2% to HK$09.43.

Shares of energy firms gained on the back of a nearly 3% gain in the price of brent crude, last quoted at US$60.55, with CNOOC (883 HK) jumping 5.4% to HK$11.7, PetroChina (857 HK) gaining 3.7% to HK$3.89, and Sinopec (386 HK) moving up 1.3% to HK$4.59. China Oilfield Services (02883) rose 1.3% to HK$9.7.

Chinese banks performed well, with Industrial and Commercial Bank of China (1398 HK) up 1.2% at HK$4.95 after reported first-half net profit rose 4.5% to 167.9 billion yuan. China Construction Bank (939 HK) climbed 0.9% to HK$5.82, and Bank of China (3988 HK) added 1% to HK$2.99.

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