Hong Kong stocks extend gains to a 9th session in winning start to 2018
The Hang Seng Index posts its best weekly gain since October, while Shanghai shares record their biggest weekly jump in more than a year
Hong Kong stocks finished higher on Friday for a ninth straight session, capping the first week of 2018 with a 3 per cent advance, the best performance since the week that ended October 6 and moving closer to its all-time high in 2007.
The Hang Seng Index rose 0.3 per cent, or 78.16 points, to 30,814.64, bringing total gains to 1,580 points, or 5.4 per cent for the nine sessions. The Hang Seng China Enterprises index, or the H-shares index, inched up 0.1 per cent, or 8.08 points, to 12,211.63. Daily turnover decreased 5 per cent to HK$125 billion from Thursday.
“Funds keep flowing into the Hong Kong market,” said Ben Kwong, executive director at KGI Asia. “A weakening US dollar and low valuations of Hong Kong stocks both support a positive outlook for the city’s market in the near term”.
Nonetheless, he cautioned the market could pull back after recent gains as investors book profits, with the Hang Seng’s short-term support level seen at 30,200.
Chinese property developer Country Garden Holdings contributed most to the Hang Seng Index, responsible for 16 points of gains. It added 4.5 per cent to HK$16.22.
Other property shares advanced, with China Resources Land climbing 4.2 per cent to HK$24.80, New World Development rising 3.5 per cent to HK$12.40, and China Overseas Land & Investment gaining 2.8 per cent to HK$27.95.
The oil sector also strengthened as crude prices remained elevated. Sinopec rose 1.5 per cent to HK$6.23, CNOOC added 0.8 per cent to HK$12.16 and PetroChina moved up 0.3 per cent to HK$5.80.
In mainland China, the Shanghai Composite Index ended higher for a sixth session, up 0.2 per cent, or 6.04 points, to 3,391.75. For the week, the index climbed 2.6 per cent, the biggest weekly increase in more than a year.
The CSI 300, which tracks large caps listed in Shanghai and Shenzhen, edged higher by 0.2 per cent to 4,138.75. The Shenzhen Composite Index was almost unchanged at 1,941.8, while the Nasdaq-style ChiNext settled 0.4 per cent higher at 1,801.42.
Combined turnover for the Shanghai and Shenzhen markets was 499 billion yuan (US$76.9 billion).
Beer makers soared, with Tsingtao Brewery up by the maximum 10 per cent allowed to 43.84 yuan, Beijing Yanjing Brewery adding 7.6 per cent to 7.33 yuan and Fujian Yanjing Huiquan Brewery 3.4 per cent higher at 9.43 yuan.