Market Open: Hang Seng may see more consolidation
Noon update: Hong Kong shares fell 0.75 per cent in the morning session on Friday on profit-taking and concerns the US Federal Reserve could end its loose monetary policy earlier than expected. The benchmark Hang Seng Index shed 174.57 points to 23,224.03 on turnover of HK$39.66 billion (AFP)
More profit-taking could drag down the benchmark Hang Seng after investors’ optimism on China’s economy and a temporary solution to the US “fiscal cliff” boosted the Hang Seng to a fresh 19-month high on Thursday.
Sentiment may become mixed after Federal Reserve policy makers said they would end the US$85 billion bond purchase plan sometime this year – dubbed as a new-round of quantitative easing. Trade would remain robust as fund managers do portfolio re-balancing, selling overbought sectors and largely buying in underweight sectors, such as financials and Chinese sportswear firms.
Hong Kong Jewellers, which jumped on Thursday, may continue to see fund inflows as the latest figures showed Hong Kong’s luxury product sales in November jumped 13.7 per cent year-on-year, after a 2.9 per cent decline in October. Meanwhile, another catalyst could be the China’s HSBC services PMI, due on 9.45am (HK time).
As for individual stocks, Li & Fung (0494.HK) has agreed to purchase a major stake in a Korean children garment producer for US$190 million, a Korean newspaper reported, citing unnamed sources. TSUI WAH
(1314.HK) said it has opened three new stores in Hong Kong and one in Shanghai, adding its total number restaurants to 30.