Hang Seng Index gains for the first day in four as bargain hunters swoop in on hard-beaten technology stocks
- The Hang Seng Index rose 0.8 per cent, or by 183.66 points, to 23,658.92, the first gains in four days
- The city’s tech gauge gained 0.5 per cent
Hong Kong’s benchmark stock index climbed from its one-year low as investors scooped up technology stocks that have fallen to attractive levels, while casinos extended their slumps.
Stocks rebounded as the index’s price-to-book ratio fell below one on Wednesday, according to Bloomberg data, signaling that blue-chip stocks were trading below their intrinsic asset values. The book value has been below one for the fourth day running, a stretch unseen since September 2020.
“The Hang Seng Index has been falling in the past two weeks, way before global markets sold [on the Omicron variant],” said Kenny Tang, managing partner at the asset management firm Venture Smart Asia. “It has already reflected the negative sentiment seen in global markets, thus the index is seeing slight rebounds today.”
“The attractive prices of technology stocks have also gained interest of bargain hunters, although the performance across the sector will differ,” Tang said. “Some like Alibaba are still under pressure, while JD.com should entice investors.”