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Hong Kong Market slides on earnings woes

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The Hong Kong share market declined for the second straight day in narrow trade on Thursday, 18 July 2019, following the slide of the Dow overnight, as risk sentiments undermined on concerns that the protracted trade stand-off between the United States and China could hurt U. S. corporate earnings. Meanwhile selloff pressures mounted fresh concerns about U. S.-China trade relations. At closing bell, the Hang Seng Index dropped 0.46%, or 131.51 points, to 28,461.66. The Hang Seng China Enterprises Index was down 0.58%, or 63.36 points, to 10,784.55.

President Donald Trump's latest remarks stoked fresh concerns about U. S.-China trade relations. Trump reportedly said there was a long way to go before a trade deal was reached with China and that he could impose tariffs on $325 billion of additional Chinese goods if he wanted. His comments brought back the focus on trade worries, which were allayed last month after Trump and Chinese President Xi Jinping agreed to a temporary truce at the G-20 gathering. Following that meeting, the U. S. had agreed to hold off on imposing tariffs on more Chinese goods and to recommence talks.

As the U. S. earnings season kicked off, weak results from railway transport company CSX Corp stoked concerns that the protracted trade standoff between the United States and China could hurt the profits of U. S. companies.

The outlook is seen even bleaker in Japan as companies struggle with the U. S.-China tariff war amid deteriorating global conditions that have dragged on its exports.

Blue chips were mixed despite Credit Suisse upgraded China/Hong Kong from "underweight" to "market weight" on improved relative valuation and EPS trends. HSBC (00005) edged down 0.4% to HK$64.75. HKEX (00388) softened 0.2% to HK$273. Tencent (00700) dipped 1.8% to HK$356.6. China Mobile (00941) dipped 0.4% to HK$70.55. AIA (01299) nudged up 0.8% to HK$86.15.

Shares of energy players declined as crude oil prices retreated after the US reported large build in its refined product stockpiles and US-Iran tensions looked abated. CNOOC (00883) slid 2.4% to HK$12.86. Sinopec (00386) softened 0.4% to HK$5.14. PetroChina (00857) ebbed 0.5% to HK$4.24.

Casino stocks were among losers. Sands China (1928 HK) fell 1.3 per cent to HK$40.90 while Galaxy Entertainment (27 HK) slid 1.1 per cent to HK56.45.

Shares of consumer staples saw buying orders. Want Want China (00151) gained 1.5% to HK$6.3. Tingyi (Cayman Islands) (00322) jumped 2.7% to HK$12.92. Uni-President China (00220) climbed 0.8% to HK$9.22.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, July 18 2019. 18:43 IST
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