UpdateHong Kong shares close lower for fifth session on concern global equity woes not over yet
Property stocks the biggest decliners in Hong Kong, while Shanghai shares also end lower
Hong Kong stocks fell for a fifth trading day on Wednesday, giving up an early rally sparked by a recovery in US stocks, as concerns resurfaced that a global sell-off is not over yet.
The Hang Seng Index dropped 0.9 per cent, or 272.22 points, to close at 30,323.20, reversing an intraday gain of as much as 2.9 per cent. It had tumbled 5.9 per cent for the biggest loss in more than two years a day earlier.
The Hang Seng China Enterprises Index, or the H-share gauge, fell 2 per cent to 12,433.29.
“I don’t think the market has recovered, there are still institutions who want to sell into the market rather than hold their stocks,” said Francis Lun, chief investment officer of GEO Securities. “Investors should reduce their holdings. The market has risen quite a lot in the past year and it is time to take profit. Sentiment has changed from unbridled optimism to scepticism.”
The Hang Seng Index rose to a record close last month after jumping 36 per cent in 2017, when it was one of the best performing stock indices in the world. But with recent losses its gains for 2018 are now only 1.4 per cent.
Still, there is optimism over the longer term outlook for Hong Kong stocks, which now represent an opportunity to buy on a dip, with the global economy still on a strong footing, analysts said.