Hong Kong stocks slip from eight-month high on renewed concerns about Covid-19 lockdowns

Hang Seng Index falls 0.7 per cent to 26,356.97, ending three-day rally

‘Once again, rising infection rates and lockdown concerns are the market’s primary focus,’ Axi strategist Innes says

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Bronze sculptures of bulls near the Hong Kong stock exchange building in Central, Hong Kong. Photo: Winson Wong

Published: 10:54am, 19 Nov 2020Updated: 5:30pm, 19 Nov 2020

Hong Kong stocks retreated from an eight-month high as heightened concerns about the Covid-19 infections hurt sentiment, tempering recent enthusiasm about the arrival of effective vaccines.

The Hang Seng Index fell 0.7 per cent to 26,356.97, ending a three-day rally. The Hang Seng Tech Index of 30 top technology stocks eased 0.9 per cent.

“Once again, rising infection rates and lockdown concerns are the market’s primary focus,” said Stephen Innes, chief global markets strategist at Axi. “Investors are becoming more fearful of the economic damage already done and what will be exerted while waiting for the vaccine roll-out.”

Benchmark heavyweight Tencent fell 2.7 per cent to HK$573, leading declines among index members. Smartphone lens-maker Sunny Optical shed 2.6 per cent. Chinese online food delivery giant Meituan, which will be added to the Hang Seng Index as a constituent on December 7, dropped 2 per cent.

Increasing new infections and the death toll in the US and Europe is a bit of a concern for the markets, said Louis Tse Ming-kwong, managing director of Wealthy Securities.

“New economy stocks are suffering a bit of selling,” said Tse.