Update | Hong Kong stocks start week on strong note, as investors focus on a raft of company results
Hang Seng gains 0.5pc to 27,690.36. Tencent climbs 1.3pc, as Morgan Stanley and Deutsche Bank lift target prices significantly ahead of its earnings report
Hong Kong stocks closed higher yesterday on strong demand for financial shares and internet giant Tencent Holdings.
The Hang Seng Index gained 0.5 per cent, or 127.68 points, to 27,690.36 while the H-shares index added 0.5 per cent, or 51.33 points, to 11,054.41 points. Turnover stood at HK$80.23 billion.
“People are still focused on company results. There is not much profit-taking in the market,” said Stanley Chan, director of research at Emperor Securities, adding that the Hang Seng Index could trade in a range between 27,000 and 28,000 points next week.
Tencent climbed 2.95 per cent to HK$320.60 ahead of its results on August 16. Morgan Stanley lifted its target price for the stock to HK$370, while Deutsche Bank raised it to HK$327.
Bank of China advanced 1.3 per cent to HK$4, China Construction Bank by 0.8 per cent to HK$6.65 and Industrial and Commercial Bank of China by 0.4 per cent to HK$5.65.
Insurers also notched up solid gains, with Manulife gaining 0.8 per cent to HK$160.70 and Ping An by 0.3 per cent to HK$59.05.
China Mobile rose by 0.3 per cent to HK$83.60 ahead of its results later this week.
Hong Kong’s flagship carrier Cathay Pacific edged up 0.2 per cent to HK$12.26 after the company announced a strategic agreement with Alibaba and its subsidiary, Ant Financial, under which the three parties will partner in tourism services, cloud computing and payment services. Alibaba owns the South China Morning Post.
CLP Holdings, the larger of Hong Kong’s two electricity suppliers, dropped 0.7 per cent to HK$83.90 after reporting weaker than expected profit as volatile energy prices in Australia dented revenue.
Mainland China stocks rebounded on Monday, with the Shanghai Composite Index up 0.5 per cent or 17.38 points to 3,279.46 while the CSI 300 — which tracks the large caps listed in Shanghai and Shenzhen — increasing 0.5 per cent or 19.21 points to 3,726.79.
The Shenzhen Composite Index tacked on 0.7 per cent or 13.8 points to 1,872.29 while the Nasdaq style ChiNext rose 0.7 per cent or 12.81 points to 1,732.43.
Shares in iron and online education companies led the gains on mainland bourses, while stocks in the insurance, gold and coal sectors retreated.
Other major Asian stock markets gained ground. Tokyo’s Nikki 225 advanced 0.5 per cent, or 103.56 points, to 20,055.89, Australia’s S&P/ASX 200 gained 0.9 per cent to 5,824.47 and South Korea’s Kospi edged up 0.1 per cent, or 3.3 points, to 2,398.75.
The Dow Jones Industrial Average rose on Friday for a ninth straight day to close at a record, after data showed US employers hired more workers than expected in July.
The strong jobs data could lead to a third rate rise this year in December by the US Federal Reserve, which aims to shrink its US$4.2 trillion bond portfolio.
