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Stocks

Hong Kong stocks advance fractionally, helped by gains in carmakers

Hang Seng Index inches 0.1 per cent higher to close at 27,972.24

PUBLISHED : Tuesday, 12 September, 2017, 9:09am
UPDATED : Tuesday, 12 September, 2017, 10:52pm

Hong Kong stocks rose marginally on Tuesday after breaching the 28,000 level in the morning session, boosted by automobiles even as cautious market sentiment continued.

Mainland stocks closed little changed, with stocks related to new-energy vehicles active.

The Hang Seng Index edged up 0.1 per cent, or 17.11 points to 27,972.24, after touching an intraday high of 28,071.54 in the morning. The Hang Seng China Enterprises Index added 0.2 per cent, gaining 20.93 points to 11,242.06. Daily turnover stood at HK$90 billion.

“Although North Korea risks have eased, people remain cautious given that the Hang Seng Index is trading near the sensitive 28,000 level so it’s normal for investors to take profit,” said Stanley Chan, director of research at Emperor Securities.

Auto stocks advanced, with electric car maker BYD jumping 10.5 per cent to HK$54.6 after announcing on Monday a successful bid to supply electric buses to Shenzhen.

Carmaker Geely surged 6 per cent to an all-time high of HK$20.7, as Goldman Sachs released a report showing its August sales rose 38.6 per cent.

Brilliance Auto added 8.3 per cent, and Guangzhou Automobile Group rose 0.9 per cent.

The gains in automakers followed the news on Saturday that China is working on a timetable to phase out the production and sale of fossil-fuel vehicles.

Shares related to Apple were also traded heavily ahead of the launch of the 10th anniversary iPhone in the United States, scheduled for 1.00am Hong Kong time on Wednesday.

Sunny Optical, which supply smartphone components for Apple, was up 7.1 per cent, while Q Technology, which produces camera and fingerprint recognition modules, increased 9 per cent.

“People are watching the response to today’s launch of Apple’s phone,” Chan said.

Property stocks inched down, with the Hang Seng properties subindex dropping 0.5 per cent.

Cheung Kong Property declined 1.2 per cent, while Sun Hung Kai Properties fell 0.6 per cent.

Mainland Chinese shares ended little changed, with battery, charging station, and auto companies related to new-energy vehicles all ending the session higher.

The Shanghai Composite Index added 0.1 per cent, or 3.07 points, to 3,279.49, while the CSI 300 – which tracks companies listed in Shanghai and Shenzhen – was up 0.3 per cent, or 12.28 points, at 3,837.93.

The Shenzhen Composite Index declined 0.3 per cent to 1,986.21, and the Nasdaq-style ChiNext was down 0.6 per cent at 1,884.48.

Other Asian markets rose moderately on Tuesday. Tokyo’s Nikkei 225 gained 1.2 per cent to 19,776.62. South Korea’s Kospi was up 0.3 per cent, and the Sydney All Ordinaries rose 0.6 per cent.

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