Update | Hong Kong stocks gain for 10th session, longest winning streak in over 5 years
Property companies see sharp gains on a positive profit outlook, offsetting declines in financials. China shares also see rises
Hong Kong’s stock market closed slightly higher on Monday, gaining for a 10th consecutive session in the longest winning streak in over five years, as gains in property developers were enough to offset declines in financials.
The Hang Seng Index finished up 0.28 per cent, or 84.89 points, at 30,899.53, posting its longest strong of gains since October 2012. The Hang Seng China Enterprises Index edged up 0.19 per cent, or 23.56 points, to 12,235.19.
“Overall market sentiment remains bullish, especially after positive earnings alerts issued by property developers,” said Louis Wong Wai-Kit, director of Philip Capital Management. “However several financial technical indicators point to some consolidation in the short term.”
Property companies made sharp gains after Morgan Stanley said Chinese developers were expected to see core profit growth of 41 per cent for 2017. Country Garden Holdings surged 7.40 per cent to HK$17.42, continuing its rise from last week. Evergrande jumped 2.97 per cent to HK$29.50, while China Overseas Land & Investment put on 5.19 per cent to HK$29.40.
Their increases were enough to offset falls in insurers and banks on a bout of profit-taking.
AIA fell 0.89 per cent to HK$66.85, China Life dropped 1.02 per cent to HK$24.35 and New China Life Insurance fell 1.48 per cent to HK$53.30.