Hong Kong stocks sink to lowest level since January; Swire Pacific thuds to more than one year low
- The Hang Seng Index dropped to its lowest level since January on Monday, ending the day 0.44 per cent down at 25,824.72
- Swire Pacific drops 6.2 per cent, weighed by concerns over Cathay Pacific route access to mainland China
Hong Kong kicked off the week in a downbeat mood on Monday, as weeks of political protests in the city took a toll of markets, led by declines in major conglomerate Swire Pacific.
The Hang Seng Index closed at its lowest level since January, dropping 0.44 per cent to 25,824.72.
Swire Pacific, the parent company of carrier Cathay Pacific Airways, tumbled 6.2 per cent to close at HK$76.70, its lowest level since May 2018. Cathay shares slumped 4.9 per cent to close at HK$9.80, their lowest level in 10 years. The airline has come under pressure to crack down on employees after Chinese authorities said aircrew supporting the anti-government demonstrations would be barred from flights travelling to, from or through mainland China.
In a note to staff on Monday, Cathay chief executive Rupert Hogg said, “there will be disciplinary consequences for employees who support or participate in illegal protests” and these “may include termination of employment”.
The carrier is 45 per cent owned by Swire Pacific, and 22.7 per cent held by Air China, which fell by 1.7 per cent to HK$6.41 in Hong Kong.
Shortly after 4pm airport authorities cancelled all outbound flights from Hong Kong – one of the world’s busiest airports – after thousands of anti-government protesters occupied the airport terminal building, following weekend clashes with police.