Hong Kong stocks extend record winning streak to 14th straight day

The Hang Seng Index ends 0.9 per cent higher on Friday, rising for 14 consecutive trading days, reflecting the longest winning streak since its inception in 1969

PUBLISHED : Friday, 12 January, 2018, 9:06am
UPDATED : Friday, 12 January, 2018, 10:58pm

The Hong Kong stock market capped a record breaking week at the close on Friday, boosted by energy and insurers, with the Hang Seng Index rising for a 14th straight day, the longest winning streak since its inception in 1969.

The benchmark index rose 0.94 per cent, or 292.15 points, at 31,412.54 while the Hang Seng China Enterprises Index gained 1.41 per cent, or 173.41 points, to 12,468.93.

“The market euphoria is still here,” said Kenny Tang Sing-hing, chief executive at Jun Yang Securities. “And the Lunar New Year is just around the corner.”

“For the last few days we have seen some profit taking by investors from the mainland but I think by the beginning of next week we will see the positive impact of the upcoming holiday,” Tang said.

Among insurers, Ping An Insurance (Group) Co of China rose 3.4 per cent to HK$86.40, reflecting its biggest gain in over a week. China Life Insurance rose 1.6 per cent to HK$24.90 and AIA added 0.82 per cent to HK$67.25.

Banks were generally higher. China Construction Bank was up 1.4 per cent to HK$7.78, Industrial & Commercial Bank of China gained 1.7 per cent to HK$6.64, and Bank of China added 1.23 per cent to HK$4.11. Hong Kong Exchanges and Clearing was also up 2.4 per cent to HK$274.80.

Although HSBC Holdings dropped 0.40 per cent to HK$83.70, snapping a three-day rally.

Tencent Holdings, the most heavily traded stock, rebounded 3 per cent to HK$442.20, snapping a two-day slide.

Oil and gas shares were the biggest gainers after the price of oil climbed above US$70 a barrel in London overnight for the first time in three years, as production cuts by OPEC and rising global demand ate away at supplies.

Sinopec advanced 1.9 per cent to HK$6.51, PetroChina moved up 0.9 per cent to HK$5.93 and CNOOC jumped 2.5 per cent to HK$12.50. China Oilfield Services remained positive, rising 0.73 per cent to HK$9.60.

The transport industry was among losers, with Beijing Capital International Airport led declines, down 2.13 per cent to HK$11.94, falling for a fourth straight day. Beijing Airport’s second largest shareholder NWS Holdings announced that it will cut its shareholding substantially, selling 208 million of the Hong Kong-listed shares through its indirect wholly-owned subsidiary Fortland Ventures.

China Zhengtong Auto Services Holdings slid 4.34 per cent to HK$8.37, after resuming trade from Thursday’s halt. Zhengtong said it plans to place 226 million shares at HK$7.8 apiece to raise proceeds of up to HK$1.74 billion (US$267 million).

In the mainland, the Shanghai Composite Index edged up 0.11 per cent, or 3.6 points, to 3,428.94, while the CSI 300 – which tracks big companies listed in Shanghai and Shenzhen – gained 0.46 per cent, or 19.41 points, to 4,225.00.

However the Shenzhen Component Index fell 0.02 per cent, or 2.21 points, to 11,461.99 while the Nasdaq-style ChiNext lost 1.02 per cent, or 18.52 points, to 1,785.71.

In Asian trading on Friday, Tokyo’s Nikkei 225 eased 0.24 per cent, or 56.61 points, to 23,653.82. South Korea’s Kospi rose modestly 0.34 per cent, or 8.51 points, to 2,496.42, while the Sydney All Ordinaries was virtually flat at 6,176.80.