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Hong Kong Stocks near 14-month lows on simmering trade worries

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Headline indices of the Hong Kong share market declined to hit 14-month lows on Wednesday, 12 September 2018, as trade tensions rose following a report that is seeking permission from the to impose sanctions against the U. S., separate from the tariff battle between the world's largest economic powers. In afternoon trade, the was down 104.66 points or 0.4% to 26,317.89. The Enterprises Index fell 98.52 points or 0.95% to 10,234.64. The sub-index of the Hang Seng tracking the Commerce & Industry sector fell 0.8% and the financial sector was 0.4% down, while properties sector added 0.02% and Utilities sector rose 1.2%.

The Hang Seng Index's entered into a bear market, extending its loss since a January peak to over 20%, as the worsening US-trade dispute prompted investors to pull out of riskier assets. The escalating trade war between China and the US, a decrease in buying by mainland Chinese investors and recent economic woes in such developing economies as and are among factors that have unnerved investors.

Investor confidence was chilled by the latest round of verbal threats in an intensifying US-China trade conflict. China told the (WTO) on Tuesday it wanted to impose $7 billion a year in sanctions on the in retaliation for Washington's non-compliance with a ruling in a dispute over U. S. dumping duties. Separately, US told reporters on Tuesday that the was taking a tough stance with China.

This comes after said late last week that he was "ready to go" on tariffs targeting another $267 billion on Chinese goods "if he wants." That would follow planned charges on $200 billion of Chinese goods in several industries, including technology. has vowed to retaliate if takes any new steps on trade.

NEWS FROM THE PRESS/BROKERAGE HOUSES: lifts to HK$17.39 Global Research lifted its target price for (00883) to HK$17.39 from HK$17.19, and maintained its "buy" rating.

The research house said management guided for higher production over 2018-20, between 470 and 500mboe. These rising targets are consistent with a rising believes CNOOC is well positioned to meet its mid-term output targets. The company's RMB70-80bn 2018 capex budget can be funded with internal cash flow, with sufficient room for a 4-5% dividend yield.

DB lowers Wynn to HK$22 -- lowered its target price for Wynn (01128) to HK$22 from HK$31, and maintained its "buy" rating. The research house thinks is at the start of a downward earnings revision cycle. It cut Macau 2019 GGR growth from 11% to 4% (VIP 2%, Mass 6%), resulting in industry EBITDA growth of only 5%.

China Res Power net generation down 1.6% in August -- (00836) said its total net generation of subsidiary power plants in August dropped 1.6% year-on-year to 14.68 million MWh. Total net generation of subsidiary power plants for the first eight months of 2018 grew 2.9% year-on-year to 107.1 million MWh.

OFFSHORE MARKET NEWS, US stock market closed higher on Tuesday. The Dow Jones Industrial Average rose 113.99 points or 0.4% to 25,971.06, the Nasdaq climbed 48.31 points or 0.6% to 7,972.47 and the advanced 10.76 points or 0.4% to 2,887.89.

The major European stock markets ended mixed on Tuesday. The French Index climbed by 0.3%, the German DAX Index and the U. K.'s Index both edged down by 0.1%.

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

First Published: Wed, September 12 2018. 10:19 IST
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