Hong Kong stocks gain for 10th session, longest winning streak in over 5 years
Property companies see sharp gains on a positive profit outlook, offsetting declines in financials. China shares also see rises
Hong Kong’s stock market closed slightly higher on Monday, gaining for a 10th consecutive session in the longest winning streak in over five years, as gains in property developers were enough to offset declines in financials.
The Hang Seng Index finished up 0.28 per cent, or 84.89 points, at 30,899.53, posting its longest strong of gains since October 2012. The Hang Seng China Enterprises Index edged up 0.19 per cent, or 23.56 points, to 12,235.19.
“Overall market sentiment remains bullish, especially after positive earnings alerts issued by property developers,” said Louis Wong Wai-Kit, director of Philip Capital Management. “However several financial technical indicators point to some consolidation in the short term.”
Property companies made sharp gains after Morgan Stanley said Chinese developers were expected to see core profit growth of 41 per cent for 2017. Country Garden Holdings surged 7.40 per cent to HK$17.42, continuing its rise from last week. Evergrande jumped 2.97 per cent to HK$29.50, while China Overseas Land & Investment put on 5.19 per cent to HK$29.40.
Their increases were enough to offset falls in insurers and banks on a bout of profit-taking.
AIA fell 0.89 per cent to HK$66.85, China Life dropped 1.02 per cent to HK$24.35 and New China Life Insurance fell 1.48 per cent to HK$53.30.
Among banks, China Construction Bank eased 0.39 per cent to HK$7.58, HSBC dropped 0.37 per cent to HK$80.50 and Hang Seng Bank lost 0.98 per cent to HK$192.10.
Elsewhere, Hong Kong Exchanges and Clearing advanced 3.48 per cent to HK$262, contributing the most to the Hang Seng Index, while Mengniu Dairy rebounded 4.46 per cent to HK$23.40 after Credit Suisse raised the target price to HK$27.20 from HK$25, citing increased consumption and improving sales momentum in smaller Chinese cities.
Technology stocks had a mixed start to the week. Tencent Holdings was up 1.25 per cent to HK$438.60, approaching a record high of HK$439.60 hit in November, but Apple supplier AAC Technologies slid 2.06 per cent to HK$147.30 and Sunny Optical Technology fell 1.78 per cent to HK$105.
Mainland China stocks gained, with the Shanghai Composite Index advancing 0.52 per cent, or 17.73 points, to 3,409.48. The CSI 300 – which tracks the large caps listed in Shanghai and Shenzhen – was up 0.52 per cent, or 21.41 points, to 4,160.16.
The Shenzhen Composite Index rose 0.22 per cent, or 4.18 points, to 1,945.98, while the Nasdaq-style ChiNext added 0.26 per cent, or 4.74 points, to 1,806.16.
In the region, South Korea’s Kospi rose 0.63 per cent, or 15.76 points, to 2,513.28 and the Australian All Ordinaries gained 0.11 per cent, or 6.80 points, to 6,236.50. Japan’s stock market was closed for a public holiday.