Market Wrap: Hong Kong stocks fall for second day on profit taking
Hong Kong stocks fell for the second day, as investors continued to do profit taking on fears the US economy could fall into recession, offsetting the October economic data from China, which is slightly better than consensus.
The benchmark Hang Seng Index lost 182.53 points, or 0.85 per cent, to finish at 21,384.38, after posting biggest single-day decline in over three months on Thursday.
Turnover stood at HK$57.67 billion, retreating from one-month high of HK$72 billion in the previous day.
“The key question for investors is whether China’s economic growth has truly bottomed out. Based on Oct data, especially the 9.6 per cent industrial production growth reading, the answer is firmly YES,” Lu Ting, China Economist at Bank of America Merrill Lynch, said in an emailed note to its clients.
China’s inflation rate slipped to a nearly three-year low in October, according to the latest official data. The consumer price index rose 1.7 per cent year-on-year last month, from a 1.9 per cent in the National Bureau of Statistics announced, compared with an increase of 1.9 per cent in September.
Yet the positive data failed to boost the market, as investors are worried about the economic slowdown in the US. The Shanghai Composite Index fell 0.12 per cent to finish at 2069.07.
Chow Tai Fook (1929.HK), lost 5.57 per cent to finish at HK$10.18. The jeweller said that due to rapid increases in the price of gold, gold hedging losses would cause its gross first-half profit margin to fall around by 2 per cent to 3 per cent from a year earlier. Chow Tai Fook’s first half ended on September 30.
Skyworth Digital (0751.HK) jumped by 6.02 per cent to end at HK$4.40. The company said sales volume of LED LCD TV in October surged by 112 per cent in October from a year earlier. Total TV sales volume grew by 36 per cent year-on-year.