Hong Kong stocks surrender gains with third wave of coronavirus in focus; gold miners advance
- Gold miners surge as price for the yellow metal reach a new high on demand for haven
- Technology stocks reverse gains on new Hang Seng Tech Index debut as trading volume in Hong, China markets declines
Hong Kong stocks fell on Monday as worries over the worsening third wave of Covid-19 outbreak in the city overwhelmed earlier enthusiasm about technology stocks. Gold-mining companies had a field day as price set a new all-time high.
The Hang Seng Index declined 0.4 per cent to close at 24,603.26, giving up gains of as much as 1.1 per cent advance in the opening hour. The Hang Seng Tech Index, a new gauge tracking 30 largest new economy and other technology companies, declined 1.3 per cent on its debut. Market turnover fell to HK$126 billion (US$16 billion) from HK$168 billion on Friday.
In mainland China, the Shanghai Composite Index added 0.3 per cent to 3,205.23, while the CSI 300 of large caps in Shanghai and Shenzhen gained 0.5 per cent to 4,528.45. Turnover on both exchanges was 927 billion yuan (US$132 billion), snapping a 17-session streak of breaking the 1 trillion yuan level.
“The market was earlier hopeful that new money would flow in to buy technology stocks. But it has since gone back to focusing on the fundamental side of things, which are the coronavirus and the US-China tensions,” said Kevin Leung, executive director of investment strategy at Haitong International Securities in Hong Kong.
Hong Kong has banned dining at restaurants, tightening the social distancing measures as the city recorded its 19th death related to the Covid-19 disease on Monday. As many as 128 cases of infection were reported on Sunday, the fifth straight day of triple-digit infections.