Hong Kong stocks trim losses in week as Macau casinos rebound from biggest sell-off in a month
- Alibaba Health surged after Goldman Sachs initiated research coverage with a buy rating
- Buyers returned to oversold Macau casino concessionaires despite growing regulatory uncertainty
The Hang Seng Index gained 1 per cent to 24,920.76 at the close of Friday trading, after sliding to a 10-month low a day earlier. The Hang Seng Tech Index climbed 3.5 per cent.
A gauge of Macau casino stocks trading in Hong Kong rebounded 0.5 per cent per cent after a technical indicator known as the relative strength index signalled the slump this week was overdone. Galaxy Entertainment and SJM Holdings rose by more than 2 per cent. Alibaba Health Information Technology surged 8.9 per cent after Goldman Sachs initiated the coverage with a buy rating.
Still, the Hang Seng Index lost 4.9 per cent for the week, the biggest pullback in a month. Weak August reports on China’s economy, uncertainty surrounding Macau casino regulations, and a debt crisis at China Evergrande Group have combined to spook investors.
The Shanghai Composite Index added 0.2 per cent before a two-day public holiday next week. Combined turnover on Shanghai and Shenzhen exchanges surpassed 1 trillion yuan (US$155 billion) for a 43rd day, matching the record streak set during the 2015 bull run.