Hong Kong Stocks mixed on profit booking

Hong Kong share market gave up early gains and closed mixed on Tuesday, 02 April 2019, as investors locked in profits in afternoon trade after touching a nine-month high. Market losses were, however, capped after better-than-expected factory activity data in China and the United States eased concerns over a possible global economic slowdown. At closing bell, the Hang Seng Index rose 62.65 points or 0.21% to 29,624.67. The Hang Seng China Enterprises Index fell 10.97 points or 0.09% to 11,546.66. Turnover decreased to HK$107.96 billion from HK$128.6 billion on Monday.

Figures released on Monday showed China's manufacturing sector returned to growth in March after three months of contraction as a series of government stimulus measures took hold. China's manufacturing activity grew for the first time in four months in March with quicker rises in output and overall new work, according to a private report released yesterday, which also showed the fastest growth in eight months. The Caixin China General Manufacturing Purchasing Managers' Index, which measures the manufacturing sector and is weighted toward private companies, came in at 50.8 in March, rebounding 0.9 percentage points from the previous month, Caixin magazine and research firm Markit said. A reading above 50 signals growth while one below 50 means contraction. The Caixin PMI is a private survey focusing on smaller businesses and offers a first glimpse into the operating environment. It is closely watched as an alternative to the official PMI. The official PMI for March released on Sunday was 50.5, compared with 49.2 in February.

Overnight on Wall Street, the S&P 500 hit a near six-month high, closing up 1.2 per cent after US factory activity rebounded from a two-year low. The U.S. ISM index for manufacturing rose from a two-year low Monday. That followed better than expected China manufacturing PMIs for March, assuaging growth concerns, though manufacturing data for Europe came in at the lowest since 2013. Meanwhile, U.S.-China trade talks will resume when Vice Premier Liu He leads a delegation to Washington later this week.

Blue chips were mostly higher. HSBC (00005) added 1.1% to HK$65.45. HKEX (00388) put on 0.8% to HK$279.8. Tencent (00700) added 0.3% to HK$366. China Mobile (00941) rebounded 0.3% to HK$78.35. AIA (01299) put on 1.1% to HK$80.

Macau casino counters saw strong buying orders following better-than-expected March gross gaming revenue (GGR). Galaxy Entertainment (00027) rose 4.1% to HK$58.95 becoming the best blue-chip performer. Sands China (01928) gained 2.1% to HK$42.3. MGM China (02282) put on 1.1% to HK$17.1. Wynn Macau (01128) rose 1.5% to HK$20.1. SJM Holdings (00880) inched up 0.4% to HK$9.45. Melco International Development (00200) mounted 1.9% to HK$19.28.

Automakers were generally higher. Geely Automobile (00175) jumped 1.7% to HK$15.82. Dongfeng Motor Group (00489) gained 3.6% to HK$8.35. BYD (01211) advanced 2.1% to HK$49.4. Great Wall Motor (02333) shot up 1.9% to HK$6.06. But GAC Group (02238) plunged 5.6% to HK$8.66 as it reported weaker earnings.

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