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Louise Moon

The Shanghai Composite Index posted its sixth straight trading day of losses, while Hong Kong bounced into slight gains near the close, as a global oil glut added to existing worries over the ongoing US-China trade war.
The Shanghai Composite began down Thursday and stayed down, ending with a loss of 1.17 per cent to 2,827.80, helping to pull the first week of June trading into a 2.45 per cent decline. That was its lowest level since February 22. It posted a weekly gain last week.
Meanwhile the CSI 300 of large caps in Shanghai and Shenzhen shed 0.9 per cent to 3,564.67 on Thursday, and a total 1.79 per cent through the week.
In Hong Kong, the Hang Seng closed up 0.26 per cent, ending at 26,965.28, in its second straight day of gains. This week, the bourse has risen by 0.24 per cent, in its first week of gains after four weeks of losses.
But still, investor sentiment overall remains negative.
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Market sentiment for June does not look good, said Castor Pang Wai-sun, head of research for Core Pacific-Yamaichi.
“[Investors] are still worried about the trade war and, of course, there is another major concern about economic growth continuing to slow down. Maybe we will see a downturning in the global economy,” he said.
“The US stock market has had two days of rebounds over speculating on September interest rate cuts, but for Hong Kong, the overall stock performance is not very good.”
Turnover in Hong Kong and the mainland was below average on Thursday.
China awards 5G licences to country’s major telecoms network operators, cable network giant
“There is a long holiday coming and no good news is in sight,” said Francis Lun, chief executive officer of Geo Securities, referring to the Dragon Boat Festival in Hong Kong and China on Friday. “ … June will almost certainly be worse than May, because more bad news may come and things could go even more downhill.”
Energy stocks were the big drag through the day in Hong Kong, with news overnight from the US spilling over into Hong Kong. The sector lost 0.72 per cent through the day.
According to Bloomberg, the price of US crude shed 5.4 per cent to be 22 per cent lower than its peak in April, while the price of Brent sank to its lowest level since January, below US$60. US government data also revealed total US petroleum stockpiles grew by about 22 million barrels last week, marking the largest jump in data that extends back to 1990. Meanwhile, US crude production set a record, while imports climbed at the same time, reported Bloomberg.
Stocks Blog: Shanghai ends down but Hong Kong ekes out small gain as energy stocks fall amid fear of oil glut
In Hong Kong, CNOOC led the pack as the biggest company drop of the day, falling 1.78 per cent. It was followed by China Petroleum & Chemical Corp, down 0.97 per cent, and Petrochina which lost 0.23 per cent.
In the mainland, PetroChina lost 0.99 per cent, while Sinopec was flat by the end of trading.
The big driver in Shanghai, where all sectors lost, was 5G stocks. Telecommunications led the slide, falling by nearly 4 per cent.
This came after Beijing issued 5G licenses to major telecom operators and embattled Huawei’s orders were reported to have fallen sharply. Traders were profit taking from 5G-related stocks, after the rose earlier in the week.
Nanjing Huamai Technology and ZhongTongGuoMai Communication, which provide telecommunications equipment, and Jiangsu Lettall Electronics, which manufacturers electrical components, all plunged by over 9 per cent.
This also extended to Hong Kong, where Sunny Optical dropped 1.31 per cent, and AAC Technologies lost 0.61 per cent.


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Shanghai posts sixth straight day of losses while Hong Kong gains as fears of oil glut are added to jitters around ongoing trade war

A man walks by an electronic board displaying stock prices at a brokerage house in Beijing on June 6, 2019. Photo: Associated Press

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The award of commercial 5G licences may push the country’s three telecoms network operators to accelerate their 5G mobile network roll-out plans, an analyst said. Photo: Reuters

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5G active antenna units with logos of China Mobile and Huawei are seen in front of a National People's Congress (NPC) conference center in Luoyang, Henan province, China February 27, 2019. Picture taken February 27, 2019. REUTERS/Stringer ATTENTION EDITORS - THIS IMAGE WAS PROVIDED BY A THIRD PARTY. CHINA OUT.

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A man stands next to a 5G sign at the Tencent Global Digital Ecosystem Summit in Kunming, Yunnan province, on May 23, 2019. Photo: Reuters

China Telecom technicians test equipment for the carrier’s 5G base station near the Yellow River in Lanzhou, Gansu province, on May 16, 2019. Photo: Reuters

Business

Markets

June could end up worse than May in Hong Kong, says one analyst
Energy stocks lead declines as prices fall, US inventories jump


“June will almost certainly be worse than May, because more bad news may come and things could go even more downhill,” Francis Lun of Geo Securities of Hong Kong’s stock market.


China stock market

Shanghai posts sixth straight day of losses while Hong Kong gains as fears of oil glut are added to jitters around ongoing trade war

.css-1mniedq{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;}June could end up worse than May in Hong Kong, says one analyst Energy stocks lead declines as prices fall, US inventories jump

June could end up worse than May in Hong Kong, says one analyst

Energy stocks lead declines as prices fall, US inventories jump