Hang Seng Index drops to lowest level since January as a second day of disruptions at Hong Kong’s airport roil sentiments
- Hang Seng Index closed 2.1 per cent down at 25,291.28, hitting its lowest level since January 3
- Cathay Pacific Airways fell 2.6 per cent to HK$9.55, extending its declines after falling to a 10-year low yesterday, as the Hong Kong airport cancelled most flights for a second day after thousands of protesters laid siege to facilities
Hong Kong’s benchmark stock index plunged to its lowest level since January, as weak corporate earnings resulting from the year-long US-China trade war took their toll, while a second day of disruptions at the city’s airport weighed on sentiments.
The Hang Seng Index closed 2.1 per cent down at 25,291.28, hitting its lowest level since January 3. Smartphone parts maker Sunny Optical Technology was the sole gainer out of the 50 component stocks on the index, closing 0.5 per cent higher at HK$86.40.
Hong Kong’s stock market could see a brief recovery when the benchmark gauge falls to the 25,200 level, which is a major support for the index, according to Louis Tse Ming-kwong, managing director at VC Asset Management.
“Those short selling the Hong Kong market will gradually want to square their positions and lock in the gains, and the market will take a breather,” he said.
But the temporary recovery would only happen if planned rallies for this weekend do not escalate further, giving institutional investors some confidence that governance is not spiralling out of control in Asia’s financial hub.