Hong Kong stocks retreat from 15-month high
Hong Kong shares fell on Monday as investors locked in profit after the city’s benchmark hit a 15-month high and ahead of Tuesday’s US presidential election.
The benchmark Hang Seng Index shed 104.93 points, or 0.47 per cent, to finish at 22,006.40. Turnover fell from Friday’s HK$70 billion to HK$51.7 billion.
“There has been a liquidity driven rally over the past months, but we are still looking at company earnings very closely to see if they live up to expectations,” said Franki Chung, chief investment officer at MEAG HK, when asked whether he saw the incoming capital boosting the city’s equity prices further.
“With internet and software companies getting into the smartphone space, FIH now has a golden opportunity to resume growth. We note that Amazon, Google, Microsoft, Xiaomi, Baidu, Tencent are all trying to launch smartphones and none has in-house manufacturing,” Citi analyst Kevin Chang wrote in an morning note to a client.