Hong Kong Stocks end mixed

Headline equities of the Hong Kong share market closed mixed after trimming intraday losses on Thursday, 28 June 2018, thanks to late hour bottom fishing in heavily battered stocks. City bourses traded lower most of juncture as weakness in Wall Street overnight and major Asian market including Mainland bourses in today amid nervous about a brewing trade war between the U.S. and China has kept most of investors on the edge. The benchmark index opened up 11 points to 28,368 and briefly rose 211 points to an intra-day high of 28,567 but reversed course to slide 187 points at one point and rebounded in late trading. The Hang Seng Index was up 141.06 points or 0.5% to 28,497.32. The Hang Seng China Enterprises Index fell 10.72 points or 0.1% to 10,868.45.

Shares of energy players gained on the back of higher oil prices. Crude oil prices surged to highest level in three and half years overnight, after reports of drop in US crude stockpiles compounded supply worries in a market already uncertain about Libyan exports, a production disruption in Canada and Washington's demands that importers stop buying Iranian crude. US crude futures surged 3.16 per cent on Wednesday, rising as high as US$73.06 a barrel, the highest since Nov 28, 2014, on signs of tight supply. CNOOC (00883) shot up 3.85% to HK$13.48, making itself the largest blue-chip gainer. PetroChina (00857) put on 2.45% HK$5.86 while Sinopec (00386) gained 1.9% to HK$6.98.

Chinese developers continued to face pressure on concerns of restrictions. Country Garden (02007) shed 2.67% to HK$12.4. Evergrande (03333) sank 4.56% to HK$18.42. Agile Group (03383) slid 3.88% to HK$12.4.

CORPORATE NEWS BYTE: Luk Fook Holdings (00590) posted 35% year-on-year jump in net profit to HK$1,369 million, benefiting from stable overall gross margin and operating leverage. Revenue amounted to HK$14,578 million, an increase of 13.8% from a year earlier. The Company proposed final dividend is HK$0.55 (2017: final dividend of HK$0.4 and special dividend of HK$0.15) per share, payable on or around 30 August.

Precision Tsugami (China) Corporation (01651) posted 72.4% year-on-year jump in net profit to Rmb194 million. Revenue amounted to Rmb2,314 million, an increase of 41.4% from a year earlier. The Group's overall gross profit margin increased from approximately 17.8% to approximately 20.4%. The Company proposed final dividend is HK$0.16 per share, payable on 7 September.

Union Medical Healthcare (02138) posted 39.1% year-on-year jump in net profit to HK$279 million. Revenue amounted to HK$1,308 million, an increase of 35.5% from a year earlier, primarily attributable to the significant increase in the revenue generated from medical services and health management services. Sale contracts entered into during the year grew 44.2% to HK$1,399 million. The Company proposed final and special dividend are HK5 cents and HK9.5 cents per share, payable on 6 September.

OFFSHORE MARKET: U.S. stocks closed lower on Wall Street Wednesday, 27 June 2018, on reports that the Trump administration wasn't softening its stance on imposing limits on Chinese investments. The Dow Jones industrials fell 165 points or 0.7% to 24,117 and the S&P 500 slid 23 points or 0.9% to 2,699. The Nasdaq composite lost 116 points to 7,445, its lowest close since May 31.

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