Hong Kong Stocks fall on capital outflow woes

Hong Kong share market closed down for third straight session on Thursday, 4 October 2018, on tracking selloff in other Asian bourses as a firmer dollar prompted fears of capital outflows from local and other Asian markets. Meanwhile, selloff pressure intensified amid concerns about domestic economic growth after Standard Chartered Bank cut its estimate for the city's economic growth to 3.6% from 3.8% for the full year, citing higher interest rates and the fallout from the US-China trade war. At closing bell, the Hang Seng index ended 467.39 points, or 1.73%, down at 26,623.87, the lowest close since Sept. 12. The Hang Seng China Enterprises index fell 2.21%, or 238.53 points, to 10,547.64. Turnover increased to HK$80.2 billion from HK$67.5 billion on Wednesday.

Shares of banks and financials and property developers declined amid fear of fears of capital outflows. Among Chinese financials, China Construction Bank lost 2.1% to HK$6.47, Industrial and Commercial Bank of China was down 1.6% to HK$5.42 and Ping An Insurance (Group) shed 1.4% to HK$76.25. Among developers, China Overseas Land and Investment dropped 2.1% to HK$23.40, China Evergrande Group lost 2.4% to HK$22.20.

Shares of Macau gaming names rose across the board after Macau Tourism Office said visitor arrivals during the first three days of Golden Week national holidays grew 24.1%. Sands China (01928) put on 1.9% to HK$35.6. Galaxy Entertainment (00027) added 1.8% to HK$48.85. Wynn Macau (01128) jumped 2.1% to HK$17.66. MGM China (02282) jumped 3.6% to HK$12.76. SJM Holdings (00880) edged up 0.1% to HK$7.14. Melco International Development (00200) rose 0.9% to HK$15.82.

ECONOMIC NEWS: Hong Kong private sector deteriorates further-- Hong Kong's business confidence in the private sector fell further in September with sharper decline in both output and new orders. The Seasonally adjusted Nikkei Hong Kong PMI fell to 47.9 in September from 48.5 in August. Rising trade tensions between the U.S. and China brought down Chinese orders markedly. Deflationary pressures were seen in the private sector.

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