Hong Kong’s benchmark stock index bursts through 30,000 points again as HSBC profit beats estimates
- HSBC, Europe’s largest bank, beat market expectations with a 34 per cent jump in first-quarter profit
- Whether Hang Seng Index can stay above 30,000 depends on new catalysts next week, says Haitong analyst
Hong Kong stocks rose on Friday after HSBC beat estimates with its first-quarter earnings, the benchmark Hang Seng Index finishing above the key 30,000-point level.
The gauge added 0.5 per cent to close at 30,081.55, bringing the week’s gains to 1.6 per cent, the largest increase in four weeks.
Turnover in the market stood at HK$66.9 billion (US$8.5 billion), well below the daily average of HK$110.6 billion achieved in March. The mainland Chinese markets remained closed for the Labour Day public holidays and will resume trading on Monday.
The psychologically important 30,000-point mark has been a key resistance level over the past month. The Hang Seng Index attempted to stay above the level twice but failed.
“Whether the 30,000 point can become a new support level for the Hang Seng Index hinges on whether there will be new catalysts to drive the market next week, potentially a trade deal of some kind,” said Kevin Leung, executive director of investment strategy at Haitong International Securities.
The market lacks a fundamental driver and has been stuck in range-bound trading between 29,500 and 30,000 points over the past month, according to Leung.