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Hong Kong stocks broke its nine-day winning streak in the trade today as its benchmark index is poised to end sessions lower due to a worldwide markets declining.
The Hang Seng Index shed 0.5% to 24,628.44 12pm, Hong kong time following yesterday’s record high that was last seen in September of 2012. The gauge’s trading volume is 46% more than the 30-day average. Meanwhile the H-share Index or the Hang Seng China Enterprises Index dropped by 0.9% to 11,025.52.
Citigroup Inc. pared another company’s rating driving developer China Overseas Grand Oceans Group Ltd. to plummet by 7.2%. SmarTone Telecommunications Holdings Ltd. and Li Ka-shing’s Cheung Kong Holdings Ltd. sank by 2% and 3.8% respectively with the former expecting its net income to plunge by as much as 40% while the latter reported a worse-than-expected first-half revenue.
Asset-management director at Ample Capital Ltd., Alex Wong, commented to Bloomberg that the market was at a very high level which in time of decline will naturally cause a snowball effect. Wong adds that if the Asian market perceives one or two positive earnings, it will stabilize once more. Wong believes that at the moment, market participants are wary and nervous.
The Chinese manufacturing data that was released recently showed that the industry added 51.7 for the month of July compared to June’s 51 surpassing analyst estimates that placed the data at 51.4. This means that the gauge has expanded because it went beyond 50. HSBC Holdings Plc and Markit Economics released a final reading that put the factory activity in China to its 18-month high at 51.7.
