Saturday, March 23, 2019
Martin Hennecke

Stocks rally as trade war fears ease
Hong Kong stocks extended a rally yesterday in line with sustained upward trends on global markets as trade war fears eased.

The Hang Seng Index opened 540 points higher in the morning then extended the gain after midday to over 610 points at one point to peak at 31,607 points. It closed 598 points, or 1.9 percent, higher at 31,594.

The Hang Seng China Enterprises Index went up by 266 points, or 2.1 percent, to 12,697.

Market turnover reached to HK$119.75 billion.

Blue chip stocks lifted broadly.

Heavyweight Tencent (0700) gained 2.91 percent to HK$460 following word that it is outlaying more than 3.3 billion yuan (HK$4 billion) to buy 27.6 percent of Xinli Media shares. That will make it the second-largest shareholder.

Hong Kong Exchanges and Clearing (0388) went up 2.81 percent to HK$292.2 while AIA (1299) added 2.65 percent.

Mainland banks advanced as well, with CCB (0939) up 3.66 percent, ICBC (1398) put on 2.47 percent and ABC (1288) 4.68 percent.

Chinese insurers performed well, with Ping An (2318) rallying 2.66 percent and China Life (2628) 0.86 percent.

But a major talking point was shares in Prada (1913) surging 20 percent at one point yesterday after it stemmed a slide in sales in the second half of 2017 and said it expected to see growth continue this year.

The Italian luxury goods maker closed the day 14 percent higher on HK$36.95.

It recorded a year-on-year decline of 4.3 percent in net income to 248.9 million euros (HK$2.3 billion) for 12 months to December 31.

Hung Lai-ping, the investment strategy director of Gransing Securities, said the highest level of the HSI this week is expected to be around 31,800 points while it could top 32,000 next week on the strength of Tencent or mainland banks' annual results.

Hung is negative on oil and resource sectors, although CNOOC (0883), China Petroleum & Chemical Corp (0386) and PetroChina Co (0857) increased 2.66 percent, 0.94 percent, and 1.5 percent respectively yesterday.

On currencies, the central parity rate of the yuan strengthened to 6.333 against the US dollar.

Previous news : Profit jumps for China Literature


Register  Forget Password
Advanced Search
© 2019 The Standard, The Standard Newspapers Publishing Ltd.
Home | Business | Metro | Focus | Opinion | Markets | World | Sports | Entertainment | Monday Money | Property | Macau | Weekend