Hang Seng Index

Hang Seng edges up 0.2pc, lifted by property developers, energy

Hang Seng Index gains 62.31 points to 31,073.72, narrowing in on all-time closing high of 31,638.22

PUBLISHED : Wednesday, 10 January, 2018, 9:15am
UPDATED : Wednesday, 10 January, 2018, 10:14pm

Hong Kong and mainland markets closed mostly higher on Wednesday, with the Hang Seng Index edging closer to its decade-old record, established in October 2007.

The Hang Seng was up 0.2 per cent, or 62.31 points, to 31,073.72, while the Hang Seng China Enterprises Index gained 0.27 per cent, or 33.49 points, to 12,289.17.

“The market rallied again, led by HKEx and HSBC,” said Louis Wong Wai-kit, director of Phillip Capital Management. “The possibility of Alibaba dual-listing in Hong Kong also supported the rally and the share price of HKEx.”

Tencent Holdings hit a record high of HK$443.80 before reversing lower, ending 0.77 per cent down at HK$440.40.

Among other technology companies, Sunny Optical Technology (Group) snapped four days of losses, rising 0.68 per cent to HK$103, but Apple supplier AAC Technologies continued to drop for a third day, moving down 2.13 per cent to HK$142.40.

Chinese property developers jumped. Country Garden Holdings surged 6.70 per cent to HK$18.48, China Vanke gained 1.96 per cent to HK$39 and China Resources Land rose 2.68 per cent to HK$25.80.

Hong Kong Exchanges and Clearing (HKEx) rallied 1.04 per cent to HK$271.80. Morgan Stanley raised its target price on the exchange operator to HK$290 from HK$270, as average daily turnover on the Hong Kong stock exchange recently reached HK$105 billion (US$13 billion). On Wednesday, total turnover was HK$141 billion.

Financials were up. HSBC gained 1.42 per cent to HK$82.10, Citic Bank advanced 4.49 per cent to HK$5.35, and ICBC added 0.62 per cent to HK$6.54.

Banking giants, including JP Morgan Chase and Bank of America, will release moderate quarterly results this Friday, so optimistic expectations also lent support to HSBC
Louis Wong Wai-kit, director of Phillip Capital Management

“Banking giants, including JP Morgan Chase and Bank of America, will release moderate quarterly results this Friday, so optimistic expectations also lent support to HSBC,” Wong said.

Oil-related stocks continued to rise after West Texas Intermediate futures extended their gains above US$62 a barrel. Credit Suisse lifted target prices of Chinese oil stocks, citing CNOOC as its top pick.

CNOOC advanced 1.66 per cent to HK$12.22, China Oilfield climbed 6.11 per cent to HK$9.55 and PetroChina rose 0.69 per cent to HK$5.82.

Mainland stocks were mixed on Wednesday. The Shanghai Composite Index rose 0.23 per cent, or 7.93 points, to 3,421.83 while the CSI 300 – which tracks large companies listed in Shanghai and Shenzhen – added 0.44 per cent, or 18.51 points, to 4,207.81.

The Shenzhen Composite Index however was down 0.33 per cent, or 6.52 points, to 1,945.66, and the Nasdaq style ChiNext eased 0.69 per cent, or 12.51 points, to 1,791.08.

Elsewhere in Asia, Tokyo’s Nikkei 225 shed 0.26 per cent, or 61.79, to 23,788.20, while South Korea’s Kospi lost 0.42 per cent, or 10.48 points, to 2,499.75.

Strategists at Morgan Stanley described the global rally in markets as having reached a stage of euphoria.

Alibaba is the owner of the South China Morning Post.