Market Wrap: Hang Seng at 2-week low as A-shares continue descent
The Hang Seng fell for a third day in thin trade on Wednesday as China’s onshore market continued to fall after touching a four-year low and investors got renewed concern over the US fiscal cliff problem.
The Hang Seng posted the biggest decline since November 15. More than four stocks declined for each that rose on the measure.
Turnover fell HK$46.7 billion compared with a 30-day average of HK$52.5 billion. The benchmark fell by 135.05 points, or 0.62 per cent, to finish at 21,708.98.
“We expect the resolution of the fiscal cliff budget process to have a negative impact on growth next year but only by 0.5 per cent to 1.0 per cent,” said Andrew Cole, Investment director, Multi Asset Group, Baring Asset Management.
“Anything more negative than this would, we think, be an unwelcome development for both the economy and markets”, Cole said.
China Unicom (0762.HK) fell most among blue chip stocks, losing 2.1 per cent to finish at HK$11.84. China may issue the 4G license earlier than expected to China Unicom’s river China Mobile (0941.HK), traders said. China Mobile added 0.06 per cent to finish at HK$87.5.
Chinese banks and insurers led the declines after the mainland market sank. China Construction Bank (0939.HK) lost 1.7 per cent to finish at HK$5.80. China Pacific Insurance (2601.HK) lost 3 per cent to finish at HK$24.3.
Next Media (0282.HK) was suspended before the market opened and the company announced later in the day that it has completed the deal to sell its Taiwan media businesses for US$600 million.