Stocks in Hong Kong moved up marginally on Monday, but were left out from the policy-inspired rally seen in the technology sector in the mainland market, as investors in the city appeared cautious ahead of key earnings announcements and global events. ** The main Hang Seng index and the Hang Seng China Enterprises index each ended 0.1 pct firmer.
Most sub-indices were little changed. Hang Seng's sub-index tracking energy shares rose 0.4 percent, the financial sector ended 0.4 percent higher and the property sector dipped 0.02 percent. ** Tech stocks were the outliers. Hang Seng's sub-index for information technology companies slid 2.4 percent.
Tencent Holdings, which is due to report its third quarter earnings on Wednesday, was the second worst performer in the Hang Seng and worst among H-shares on Monday, dropping 3.1 percent. The company's shares were battered last Friday after a brokerage cut its target price.
The technology sector's rally in China helped the mainland market recover from a week of losses, thanks to the securities regulator's move to simplify the process of buying back shares. Many small-caps and tech names have been troubled by pledged share financing as stock prices tanked in October.
But Chinese tech companies listed in Hong Kong "cannot benefit from the latest policy," leading their shares in the opposite direction to onshore tech names, said Linus Yip, chief strategist at First Shanghai Securities in Hong Kong.
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