Hong Kong Bourse May See Renewed Consolidation On Friday

(RTTNews) – The Hong Kong stock market on Thursday wrote a finish to the four-day losing streak in which it had tumbled more than 840 points or 3.6 percent. The Hang Seng Index now rests just above the 23,475-point plateau although it’s expected to open under pressure again on Friday.

The global forecast for the Asian markets is mixed to lower, with profit taking – especially among technology stocks – fueling a downward correction after sharp gains a day earlier. The European markets were up and the U.S. bourses were down and the Asian markets figure to follow the latter lead.

The Hang Seng finished modestly higher on Thursday following gains from the technology stocks, oil companies and casinos.

For the day, the index picked up 54.74 points or 0.23 percent to finish at 23,475.50 after trading between 23,155.62 and 23,526.05.

Among the actives, AAC Technologies climbed 0.79 percent, while AIA Group increased 0.57 percent, Alibaba Group and Hengan International both fell 0.25 percent, Alibaba Health Info spiked 1.92 percent, ANTA Sports dropped 0.42 percent, China Mengniu Dairy skidded 0.77 percent, China Petroleum and Chemical (Sinopec) jumped 0.82 percent, China Resources Land improved 0.31 percent, CITIC shed 0.39 percent, CNOOC gained 0.65 percent, Country Garden surged 5.71 percent, CSPC Pharmaceutical rallied 0.85 percent, Galaxy Entertainment rose 0.63 percent, Hang Lung Properties was up 0.13 percent, Henderson Land declined 1.06 percent, Industrial and Commercial Bank of China sank 0.47 percent, Li Ning dipped 0.22 percent, Longfor accelerated 0.98 percent, Meituan tumbled 1.41 percent, New World Development retreated 1.15 percent, Sands China advanced 0.70 percent, Sun Hung Kai Properties lost 0.27 percent, Techtronic Industries soared 1.97 percent, Xiaomi Corporation added 0.67 percent, WuXi Biologics skyrocketed 11.31 percent and China Life Insurance and Hong Kong & China Gas were unchanged.

The lead from Wall Street is negative as the major averages opened slightly higher on Thursday but quickly turned lower, sinking to session lows at the close.

The Dow dipped 29.79 points or 0.08 percent to finish at 35,897.64, while the NASDAQ plummeted 385.15 points or 2.47 percent to close at 15,180.43 and the S&P 500 sank 41.18 points or 0.87 percent to end at 4,668.67.

The pull back on Wall Street came as traders continued to digest the Federal Reserve’s monetary policy announcement on Wednesday, which was to accelerate the pace of tapering its asset purchases and forecast as many as three interest rate hikes next year.

While some stocks benefited from reduced uncertainty about the outlook for monetary policy, high-growth tech stocks fell sharply amid concerns about the impact of higher interest rates.

In economic news, the Labor Department noted a modest rebound in first-time jobless claims last week, while the Fed also said U.S. industrial production increased less than expected in November. Also, the Commerce Department said housing starts and building permits both surged much more than expected last month.

Crude oil futures settled higher Thursday, aided by data showing increased demand for energy in the U.S. and a larger than expected drop in U.S. crude stockpiles last week. West Texas Intermediate Crude oil futures for January ended higher by $1.51 or 2.1 percent at $72.38 a barrel.

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