BYD, Geely buck trend even as Hong Kong stocks’ losing streak continues for a fifth straight day
- The Hang Seng Index fell less than 0.1 per cent to 28,781.38 in rangebound trading
- Sunny Optical and Haidilao led laggards with declines of at least 2 per cent
The Hang Seng Index ended 0.02 per cent lower or 5.9 points at 28,781.38 in rangebound trading.
Mainland benchmarks also fell. The Shanghai Composite eased 0.5 per cent, while the CSI 300, which tracks the biggest stocks on the Shanghai and Shenzhen stock exchanges, dropped 0.9 per cent for its second day of declines.
“Right now, equity valuations suggest it’s time to slow down in markets, but you can’t take your foot too far off the gas due to the dearth of more defensive options,” said Johanna Kyrklund, chief investment officer at Schroders in a note on Tuesday.
“The ‘reopening’ trades have played out to a large extent now and markets have become more nuanced. Markets are getting more volatile, which is a sign that this current cycle is getting long in the tooth.”
The Hang Seng Index will remain range bound between the 28,600 and 29,400 levels as market sentiment remains lacklustre, said Kenny Wen, wealth management strategist at Everbright Sun Hung Kai.
Sunny Optical led laggards among blue chips, dropping 3.8 per cent to HK$192.60, its biggest single day decline in nearly a month.
Haidilao fell 2.8 per cent to HK$41.10, reaching its lowest levels since August 10. “Haidilao’s empty tables and sluggish turnover rates are harsh evidence of diners’ virus anxiety, and may dampen expectations for 2021’s sales and profits,” Bloomberg Intelligence analysts Angela Hanlee and Kai Lin Choo wrote in a report on Monday.
Budweiser Brewing Company APAC fell 2.5 per cent to HK$25.65, its lowest level in a month.
In the mainland, Kweichow Moutai fell 3.5 per cent to 2,191 yuan, while China International Capital Corporation fell 1.8 per cent to 59.53 yuan.
Two companies soared on their trading debuts in Shanghai.
Shanghai Haoyuan Chemexpress, which manufactures small molecule drugs, rose 382.3 per cent to 313.43 yuan from its listing price of 64.99 yuan, while vaccine supplier Chengdu Olymvax Biopharmaceuticals gained 303.9 per cent to 39.90 yuan from its IPO price of 9.88 yuan.
Markets in the Asia-Pacific were mixed. Japan’s Nikkei 225 fell 0.2 per cent, while Australia’s S&P/ASX 200 added 0.2 per cent. South Korea’s Kospi eased 0.1 per cent.