You are here: Home » News-CM » International » Market Report
Business Standard

Hong Kong Stocks trade mixed

Capital Market 

Headline indices of the Hong Kong share market were marginally lower on Tuesday, 11 September 2018, after trimming early losses hit by lingering concerns on trade frictions and turmoil in emerging markets, thanks to bargain buying in beaten down stocks on tracking rebound in Mainland A-share market. In afternoon trade, the edged down 6.50 points or 0.02% to 26,606.92. The Enterprises Index fell 34.07 points or 0.33% to 10,399.55. The sub-index of the Hang Seng tracking the Commerce & Industry sector fell 0.67%, while the financial sector was 0.37% up, properties sector added 0.4%, and Utilities sector rose 0.14%.

The Hang Seng Index's is on the brink of a bear market, extending its loss since a January peak to almost 20%, as the worsening US-trade dispute prompted investors to pull out of riskier assets. The escalating trade war between 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.

Traders stayed on the sidelines amid lingering trade concerns after ramped up trade tensions with China, suggesting he may impose tariffs on another $267 billion worth of Chinese goods. has warned it will roll out retaliatory measures if the U. S. imposes any new tariffs.

US had warned on Friday he was ready to slap tariffs on virtually all Chinese imports into the United States, threatening duties on another $267 billion of goods on top of $200 billion in imports primed for levies in coming days. China had said on Friday it will increase export tax rebates for 397 items ranging from some to electronic ones, in a bid to boost the prospects for shipments amid its trade war with the China's trade surplus with the widened to a record in August even as the country's export growth slowed slightly, an outcome that could push to turn up the heat on in their cantankerous trade dispute.

Data released over the weekend showed China's trade surplus with the US rising to a record in August, though overall export growth slowed. More economic figures released Monday showed China's consumer price index rose 2.3% in August, while prices rose 4.1%. gThe CPI growth rate is still lower than the government's 3% target, but the rising trend is causing worries. Rising inflation is always a bad sign for the market, as the government could be reluctant to announce more easing in case inflation picks up.

Chinese and Hong Kong equity markets are among the worst-performing in the world this year, as concerns over trade tensions, a weaker yuan and signs of a slowing economy weigh on investor sentiment. The liquid nature of Hong Kong's market also makes it vulnerable to jitters in emerging markets as investors sell their holdings in the city first.

NEWS FROM THE PRESS/BROKERAGE HOUSES: Million Stars announces positive profit alert -- Million Stars expects to record a profit of more than HK$150 million for the 2017/2018 financial year as compared to a loss of HK$2.8 million for the financial year ended June 2017.

The expected profit is mainly attributable to the revenue growth and improved profit margins of the new business segment of our group, namely, provision of and agency business segment.

CS lowers to HK$9-- lowered its target price for (DFM)(00489) to HK$9 from HK$9.84, and maintained its "neutral" rating. The research house said DFM's August passenger vehicle total sales volume declined 13% YoY, which was worse than the overall market's 3% YoY drop.

CS trims to HK$6.7-- lowered its target price for (GWM)(02333) to HK$6.7 from HK$8.2, and maintained its "outperform" rating. The research house said GWM's August sales volume declined 13% YoY to 64,096 units, which was worse than overall passenger vehicle market's 3% YoY drop. The decline was mainly caused by weak performance of middle-size SUV products - H2/H6 families down 47%/32% YoY.

China State Cons 8-month contract value up 14.2% -- (03311) said it recorded an accumulated new contract value of HK$82.51 billion in the eight months ended 31 August 2018, representing a 14.2% year-on-year growth. Hence, it achieved a 68.8% completion of the full year target of 2018 (which has been revised up to no less than HK$120.0 billion).

Huadian Fuxin August power generation up 3.7%-- (00816) said its gross power generation for August amounted to 3.64 million MWh, an increase of 3.7% over the corresponding period of 2017. For the first eight months of 2018, the accumulated power generation amounted to 29.41 million MWh, an increase of 7% from the same period last year.

OFFSHORE MARKET NEWS:US stock market closed mixed on Monday, as traders seemed reluctant to make any significant moves amid a lack of and lingering trade concerns after President Donald Trump ramped up trade tensions with China last Friday. The Dow Jones Industrial Average fell 59.47 points or 0.2% to 25,857.07, while the Nasdaq rose 21.62 points or 0.3% to 7,924.16 and the inched up 5.45 points or 0.2% to 2,877.13.

The major European stock markets ended higher on Monday. The U. K.'s Index closed just above the unchanged line, the German DAX Index edged up by 0.2% and the French Index rose by 0.3%.

Powered by Capital Market - Live News

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

First Published: Tue, September 11 2018. 10:12 IST
RECOMMENDED FOR YOU
RECOMMENDED FOR YOU