Hong Kong Market falls on strikes, trade concerns

The Hong Kong share market declined for ninth straight session on Monday, 5 August 2019, amid mass political uncertainties as anti-government protesters initiated a general strike in the city. Meanwhile, selloff pressure intensified on fears of a US-China trade war escalation following US President Donald Trump's vow to impose fresh tariffs on Chinese goods. At closing bell, the Hang Seng Index tumbled 2.85%, or 767.26 points, to 26,151.32. The Hang Seng China Enterprises Index dropped 2.58%, or 266.99 points, to 10,081.64.

Blue chips fell across the board. HSBC (00005) fell 1.9% to HK$61 after it reported its interim earnings growth of 18.6%. Hang Seng Bank (00011) pounded 4.1% to HK$174.1 on an 8% growth of its half-year net. HKEX (00388) sank 3.3% to HK$247.8. Tencent (00700) slipped 4.3% to HK$340.6. China Mobile (00941) fell 2.9% to HK$63.15. AIA (01299) slid 3.3% to HK$75.6.

Property counters saw continued selling pressure despite a Fed's rate cuts. Henderson and Development (00012) pounded 3.3% to HK$38.45. Sino Land (00083) fell 3.4% to HK$11.92. Sun Hung Kai Properties (00016) sank 5.2% to HK$114.5. New World Development (00017) lost 3.9% to HK$10.36. CK Asset (01113) slid 5.1% to HK$53.3. Hang Lung Properties (00101) edged up 0.2% to HK$19.08.

Airlines' shares plunged as a strike by flight crew and pilots forced dozens of flights to be cancelled or rescheduled in one of Asia's busiest transport hubs. Cathay Pacific Airways (293 HK) declined by 4 per cent in its biggest intraday percentage drop to HK$10.42, after Hong Kong's largest carrier scrapped more than 70 flights leaving the city, including one Paris-bound service. Air China (753 HK), the mainland's flag carrier, fell 5.4 per cent in Hong Kong to HK$6.84. Other Hong Kong-listed Chinese carriers were similarly affected, amid concern that declining tourist numbers from mainland China would crimp their revenue. China Southern Airlines (1055 HK), operator of the country's biggest fleet, fell as much as 5.3 per cent to HK$4.63, while Shanghai-based China Eastern Airlines (670 HK) fell 5.3 per cent to HK$3.91.

Powered by Capital Market - Live News