Update | Apple suppliers, casino operators push Hong Kong stocks higher
Hang Seng Index closes up 0.5 per cent, or 129.42 points, at 27,642.43.
Daily turnover decreased 12 per cent to US$11 billion from Tuesday
Hong Kong stocks closed higher for a second day running on Wednesday, as Apple suppliers surged on the back of a price target boost for Apple shares, while Macau casino operators posted a broad advance on an expected tourism boom during China’s upcoming golden week holiday.
The Hang Seng Index closed up 0.5 per cent, or 129.42 points, at 27,642.43. The Hang Seng China Enterprises Index, known as the H-share index, gained 0.6 per cent, or 67.39 points, at 11,035.78.
Daily turnover decreased 12 per cent to HK$86 billion (US$11 billion) from Tuesday.
The city’s benchmark index had declined 2.2 per cent within three days through Monday, as developers including China Evergrande and Sunac China bore the brunt of selling after Chongqing and seven provincial capital cities announced a ban on the resale of homes within at least two years of purchase.
Still, the gauge has climbed 26 per cent this year on fund flows from mainland investors through the cross border exchange link schemes.
“The [rising] trend on Hong Kong stocks is still there and that’s only a temporary pullback,” said Wei Wei, a trader with Huaxi Securities in Shanghai. “After the correction, stocks will resume gains, but at a moderate pace. So will the property stocks.’’
The trend on Hong Kong stocks is still there and that’s only a temporary pullback
AAC Technologies, which supplies acoustics components for iPhones, was the top gainer among blue-chip stocks. It surged 5.5 per cent to HK$133. Apple’s camera module supplier Cowell E Holdings jumped 5.2 per cent to HK$3.47. Rival Sunny Optical Technology also gained 5.9 per cent to HK$126.5.
The gains came after Apple shares advanced overnight on the back of a price target raise from US broker Raymond James.
Meantime, Macau casino shares rose across the board, on expectations that the city’s gaming revenues could receive a boost during China’s upcoming National Day holidays from October 1 to October 8.
Hang Seng constituent Galaxy Entertainment climbed 2.7 per cent to HK$54.05, and Sands China gained 2.3 per cent to HK$39.85. Wynn Macau also added 2.5 per cent to HK$20.7.
Among other outperforming stocks, Sunac China soared 11 per cent to HK$35, China Resources Land rose 1.9 per cent to HK$24.35, and China Overseas Land & Investment gained 1 per cent to HK$25.45.
Chinese electric car maker BYD improved by 2.6 per cent to HK$75.8. Geely Auto also swung higher by 2 per cent to HK$22.65.
Mainland Chinese markets will be closed for the week-long National Day holidays from October 1 to October 8. The Hong Kong market, on the other hand, will shut only on October 2 and October 5.
On the mainland, the Shanghai Composite closed barely higher, up 0.1 per cent or 1.69 points at 3,345.27.
The CSI 300 Index of big-cap companies ended virtually flat at 3,345.27.
The Shenzhen Composite Index and the ChiNext Price Index both finished up 0.8 per cent, closing at 1,979.28 and 1,854.94 separately.
Price swings on Chinese equities have been narrowing, as traders are on the sidelines ahead of the week-long public holidays, and after the securities regulator called for market stability before a meeting of top Communist Party leaders scheduled for the middle of next month.
The 100-day volatility on the Shanghai Composite Index dropped to the lowest level at least in a decade on Wednesday, according to data compiled by Bloomberg.
Anyang Iron & Steel jumped 10 per cent to close at 5.45 yuan in Shanghai, after the steelmaker said profit for the first nine months may increase seven fold from a year earlier to as much as 1 billion yuan (US$150.8 million) on improved market conditions.
