Hong Kong Stocks rebounds from four-month low

Hong Kong stock market rebounded from four-month low on Friday, 14 May 2021, as investors chased for bargain hunting, thanks to positive lead from Wall Street overnight after comments from Federal Reserve officials helped ease inflation fears.

At closing bell, the benchmark Hang Seng Index advanced 1.11%, or 308.90 points, to 28,027.57. The Hang Seng China Enterprises Index added 0.63%, or 64.96 points, to 10,404.95.

The sub-index of the Hang Seng tracking commerce & industry sector fell 0.03%, while the utilities sector added 0.47%, the properties sector added 0.13%, and the finance sector added 2.7%.

Federal Reserve Governor Christopher Waller said increases in prices above the Federal Reserve's 2 percent goal should be temporary and the Fed will not raise rates until it sees inflation above target for a long time. Fed policymakers Lael Brainard and Richard Clarida made similar comments on Tuesday and Wednesday, respectively.

 

Shares of Alibaba fell 4% after the firm posted its first operating loss and brokerage houses cut its price target. Citigroup and China International Capital Corp cut their price targets by at least 9 per cent, saying its plan to reinvest profits to fend off competitions will cast uncertainty over margins. Citic Securities estimates net income to drop 2 per cent in 2022.

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