• Thu
  • Jul 24, 2014
  • Updated: 11:12am

Hang Seng Index

Established in 1969, the Hang Seng Index is the benchmark stock market index, monitoring changes in 48 constituent blue chip stocks. It is maintained by Hang Seng Indexes Company, a unit of Hang Seng Bank, which is controlled by HSBC Group.

BusinessMoneyMarkets & Investing

China shares fall in sharp reversal, Hang Seng slips

Apple suppliers hit by disappointed quarterly revenue results

PUBLISHED : Thursday, 24 January, 2013, 5:28pm
UPDATED : Thursday, 24 January, 2013, 5:29pm

Hong Kong shares slipped for a second-straight day on Thursday, falling further away from chart resistance that had stymied gains for about a week, with Apple’s suppliers hit after the tech giant reported underwhelming quarterly revenue.

China shares ended lower on Thursday after a choppy session as investors took profit on recent outperformers, triggering a sharp intra-day reversal that left benchmark indexes vulnerable to further losses in the near term.

Weakness in mainland markets dragged on Hong Kong, with the Hang Seng Index down 0.2 per cent to 23,598.9, pulling further away from chart resistance at about 23,708, the high on May 31, 2011.

The China Enterprises Index of the top Chinese listings in Hong Kong fell 0.6 per cent, with only four components posting gains on the day. Bourse turnover slipped slightly from Wednesday, but stayed above $10 billion.

In the mainland, the CSI300 of the top Shanghai and Shenzhen listings ended down 1 per cent, while the Shanghai Composite Index finished down 0.8 per cent in bourse volume that spiked to its highest since Jan. 15.

“Technically speaking, this reversal doesn’t look good for the A-share market...but it could spark some buying on dips,” said Wang Ao-chao, UOB Kay Hian’s Shanghai-based head of research.

Mainland markets had opened on a stronger note with positive manufacturing data lifting the mood although indexes reversed gains of as much as 2 per cent in late morning with some traders citing news that North Korea would go ahead with its nuclear test plan.

But the muted reaction in other markets such as Japan and even Hong Kong suggested otherwise, with profit-taking in heavyweighted financials, which have raced up in recent weeks, having a bigger impact.

China Merchants Bank was the top drag on onshore indexes, falling 2.4 per cent from its highest since May 2011 in Shanghai. It is still up more than 39 per cent from a September 20 nadir.

Shares of Apple’s suppliers were hit after Apple missed revenue expectations for a third straight quarter as sales of its flagship iPhone came in below Wall Street’s expectations.

The Hang Seng Index closed down 0.2 per cent at 23,598.9, slipping further from resistance at about 23,708, the high of May 31, 2011. The China Enterprises Index of the top Chinese listings in Hong Kong shed 0.6 per cent.

The CSI300 of the top Shanghai and Shenzhen listings closed down 1 per cent, reversing gains of as much as 2 per cent in early trade. The Shanghai Composite Index shed 0.8 per cent as bourse volume hit the highest since January 15.

Shares of Apple’s suppliers were hit after Apple missed revenue expectations for a third straight quarter as sales of its flagship iPhone came in below Wall Street’s expectations. AAC Technologies tumbled 6 per cent.

Hong Kong-listed AAC Technologies dived 6 per cent to its lowest in more than a week and Shenzhen-listed Goertek , which supplies speakers to Apple, tumbled 5.8 per cent to its lowest close since Dec. 19.

In Hong Kong, Citic Securities, China’s largest listed brokerage, lost 2.8 per cent after warning of a 66 per cent decline last year net profit, while Foxconn International shed 5.6 per cent after warning of an annual loss.

China Mobile slid 2.2 per cent to a two-month low after JP Morgan analysts downgraded its rating on the stock from “neutral” to “underweight,” expecting the country’s largest mobile operator to post its first negative year-on-year earnings change for this year.

Bucking broader market weakness, Lenovo Group jumped 6.6 per cent to its highest since November 2007 in Hong Kong after its chief executive told the Wall Street Journal in Davos that the company’s smartphone business in China was already profitable.

Analysts were expecting Lenovo’s smartphone business to at best break even in the first quarter this year. Shares of Lenovo have jumped more than 37 per cent from a Sept. 5 low ahead of its third quarter corporate earnings due on January 30.

Wharf Holdings climbed 2.1 per cent after Citi analysts raised their target price for its stock by 25 per cent.

They cited Wharf as their top pick among Hong Kong property-related conglomerates, given its best retail portfolio among peers and the impending start to the group’s first major investment property project in China.

Citi also raised its target price for New World Development by more than 22 per cent, sending its shares up 2.6 per cent to its highest since November 2010. New World is now up 25 per cent this year after surging 92 per cent last year.

Share

Related topics

For unlimited access to:

SCMP.com SCMP Tablet Edition SCMP Mobile Edition 10-year news archive
 
 

 

 
 
 
 
 

Login

SCMP.com Account

or