Hong Kong Stock Exchange

Hong Kong stocks extend longest winning streak since 1999 on Tencent and Chinese insurers

Shares of internet giant Tencent Holdings hit an all-time high of HK$443.80

PUBLISHED : Tuesday, 09 January, 2018, 9:07am
UPDATED : Tuesday, 09 January, 2018, 11:06pm

Hong Kong stocks advanced on Tuesday, breaking the 31,000 level on gains from Tencent Holdings and Chinese insurers.

The Hang Seng Index rose 0.4 per cent, or 111.88 points, to 31,011.41, marking the 11th straight day of gains in its best run since 1999. It is just shy of the record high hit in October 2007. The Hang Seng China Enterprises Index gained 0.2 per cent, or 20.49 points, to 12,255.68.

“Market sentiment has been very strong since the start of 2018,” said Stanley Chan, director of research at Emperor Securities. “I think investors believe global economic growth remains solid and the capital money flow is also positive, so the overall market sentiment I think will remain strong in the short term.

“In the long term it depends on earnings growth, US monetary policy and the impact of the tax reform.”

Chinese insurers rebounded on Tuesday after lagging other sectors so far this year. Premium growth is expected to remain strong and investment return good in 2018, added Chan.

Ping An Insurance climbed 2.5 per cent to HK$84.30 and China Life Insurance added 0.6 per cent to HK$24.50.

Bourse operator Hong Kong Exchanges and Clearing rallied 2.7 per cent to HK$269.

Macau gaming stocks spiked across the board as Citigroup retained growth forecast for the industry at 27 per cent for January. Melco International Development climbed 4.8 per cent to HK$24.05, Sands China surged 4.9 per cent to HK$41.85 and Galaxy Entertainment Group advanced 1.7 per cent to HK$61.05.

Oil-related stocks were boosted as West Texas Intermediate futures extended gains above US$62 a barrel. Sinopec moved 1.3 per cent higher to HK$6.31, PetroChina added 0.4 per cent to HK$5.78 and CNOOC edged up 0.2 per cent to HK$12.02

Tencent was the most heavily traded stock. It rose 1.2 per cent to an all-time high of HK$443.80, beating its previous record of HK$439.60 set in November. The internet giant has had a strong start to the year, climbing 9 per cent in the first five trading sessions.

Other technology companies however continued to ease. Sunny Optical Technology (Group) fell 2.6 per cent to HK$102.30, dropping for a fourth day. Apple supplier AAC Technologies Holdings was lower for a second day, losing 1.2 per cent to HK$145.50.

“Technology stocks continue to be the focus this year. Although there has been consolidation in the last few years, their earnings growth remains okay, so investors will take this sector as a key investment in 2018,” Chan said.

Banks were mixed. China Construction Bank edged up 0.1 per cent to HK$7.59 and HSBC Holdings rebounded 0.6 per cent to HK$80.95. Industrial & Commercial Bank of China eased 0.8 per cent to HK$6.5 and Bank of China was flat at HK$3.99.

Mainland stocks rose modestly on Tuesday. The Shanghai Composite Index gained 0.1 per cent, or 4.42 points, to 3,413.90, while the CSI 300 – which tracks the large caps listed in Shanghai and Shenzhen – increased 0.7 per cent, or 29.14 points, to 4,189.30.

The Shenzhen Composite Index tacked on 0.3 per cent, or 6.20 points, to 1,952.18, while the Nasdaq-style ChiNext dropped 0.1 per cent, or 2.57 points, to 1,803.59.

In Asian trading, Tokyo’s Nikkei 225 was up 0.6 per cent, or 135.46 points, to 23,849.99 after a holiday on Monday and the Sydney All Ordinaries inched up 0.08 per cent, or 5 points, to 6,241.50. However, South Korea’s Kospi slipped 0.1 per cent, or 3.05 points, to 2,510.23.