UpdateHong Kong stocks rise for first time in six sessions as financials gain and Wynn Macau surges
Tech stocks also help the Hang Seng higher, while in China benchmark indices fall as energy and bank shares lose ground
Hong Kong stocks rose on Thursday for the first time in six trading days, as investors took advantage of lower prices from the recent sharp falls, with financials and tech firms leading the gains and casino operator Wynn Macau bouncing back after the resignation of its chairman.
The Hang Seng Index rose 0.4 per cent, or 128.07 points, to close at 30,451.27 after shedding 7.8 per cent over the past five sessions. The Hang Seng China Enterprises Index, or the H-share gauge, retreated 0.4 per cent, however. Turnover shrank to HK$149.2 billion (US$19.1 billion), 8 per cent lower than the daily average this year, according to Bloomberg data.
“The market has sold down heavily over the past few days: bulls have had heavy losses so they have had to sell stock to compensate,” said Louis Tse Ming-Kwong, managing director at VC Asset Management.
“The market is very oversold. I think quite a few retail investors want to accumulate before the Lunar New Year next week. They have nothing to lose.”
Financial stocks contributed most of the strength to the Hang Seng. AIA Group rose 1.9 per cent to HK$61.95, accounting for a third of the gain on the benchmark. HSBC Holdings added 0.6 per cent to HK$80.50 and stock market operator Hong Kong Exchanges & Clearing rose 1.2 per cent to HK$271.
Technology companies also gained, with Tencent Holdings up 1.3 per cent to HK$420.20 and AAC Technologies putting on 3.5 per cent to HK$143.90.
Wynn Macau surged 8 per cent to HK$27 as the stock resumed trading after being suspended on Wednesday. US casino magnate Steve Wynn stepped down as chairman of the company over sexual abuse allegations.