Market Wrap: Hang Seng falls ahead of key data,PICC jumps

PUBLISHED : Friday, 07 December, 2012, 5:59pm
UPDATED : Friday, 07 December, 2012, 6:34pm

The benchmark Hang Seng Index dipped on Friday, trimming weekly gains to 0.73 per cent, as investors remained cautious ahead of key data from China and US and despite an onshore market rally.

The benchmark Hang Seng Index lost 58.64 points, or 0.26 per cent, to finish at 22,191.17. The Hang Seng China Enterprises Index added 54.17 points, or 0.50 per cent, to finish at 10,919.24.

The US is due to announce November unemployment rate on Saturday night and China is due to announce November inflation next Monday morning.

China’s central bank conducted its first net injection into the money market in five weeks, a signal of a slight easing policy to power the upcoming re-stocking of the nation’s manufacturing industries.

The Shanghai Composite Index had its best week since the week ended October 28 last year. The gauge added 1.6 per cent to finish at 2061.79.

Total turnover of the Hong Kong market stood at HK$75.6 billion, compared with a 30-day moving average of around HK$56 billion.

Short-selling ratio rose to a one-week high of 8.3 per cent on Friday.

X iShares A50 (2823.HK), the ETF that tracks the mainland A-share performance, was the most shorted stock on the main board on Friday, reflecting a further possible correction for the onshore market after a strong rally.

In addition, Chinese banks, including Industrial Bank of China (1368.HK) and Bank of China (3988.HK), were also heavily shorted.

PICC Group (1339.HK) jumped in the debut trading on Friday, adding 6.9 per cent to finish at HK$3.72. It priced its shares at HK$3.48 in its US$3 billion initial public offering, near the bottom of the indicative price range. Retail demand for the stock was the strongest among the new IPO stocks in the past three to four months, traders said.

Meanwhile, Kunlun Energy (0135.HK) was the favourite as it is set to be added to the Hang Seng Index starting next week. The stock jumped by 3.5 per cent to finish at HK$16.44.