Hang Seng ends higher after Fed holds interest rate unchanged
The Hang Seng touched a two-week high during morning trading, but pared gains in the afternoon to end the day 0.38 per cent higher
Hong Kong stocks closed moderately higher on Thursday, paring back from a two-week high earlier in the day, after the Federal Reserve announced it would hold off on tightening interest rates.
The Hang Seng Index ended 0.38 per cent higher at 23,759.80 while the Hang Seng China Enterprises index rose 0.45 per cent to 9,893.80.
At one point the Hang Seng touched 24,058.65 points, its highest level since September 9.
Hantec Group International Finance managing director Gordon Tsui Luen-on attributed the positive sentiment to upbeat action in US markets, where all three major indices had gained after the Fed’s much-anticipated announcement on Wednesday afternoon in the US.
Haitong International Securities managing director for sales trading Andrew Sullivan said the Hang Seng pared back gains after the lunch break to “remain range-bound.”
Sullivan said the Fed’s policy-rate decision was beneficial to interest-rate sensitive stocks such as property developers, but added that the announcement was “not good news” for banks.
Among property companies, Henderson Land gained 1.08 per cent and Sino Land advanced 1.58 per cent. Meanwhile, banking stocks were among those with the highest turnover, with HSBC shedding 1.43 per cent to HK$58.55 and Ping An Insurance Group dropping 1.17 per cent to HK$42.15.