December 20, 2020

Hong Kong Stock Market Tipped To Open Under Pressure

By haziqbinarif

(RTTNews) – The Hong Kong stock market has alternated between positive and negative finishes through the last four trading days since the end of the two-day slide in which if had fallen more than 530 points or 2 percent. The Hang Seng Index now sits just beneath the 26,390-point plateau and it may extend its losses on Tuesday.

The global forecast for the Asian markets is murky, with Covid-19 surging even as treatment vaccines start to roll out. The European and U.S. markets were mixed to lower and the Asian markets figure to follow suit.

The Hang Seng finished modestly lower on Monday following mixed performances from the financials, properties, casinos and oil companies.

For the day, the index sank 116.35 points or 0.44 percent to finish at 26,389.52 after trading between 26,318.11 and 26,544.12.

Among the actives, Xiaomi surged 5.99 percent, while WuXi Biologics plummeted 4.05 percent, CNOOC soared 3.45 percent, BOC Hong Kong spiked 2.71 percent, Alibaba Group plunged 2.63 percent, China Mengniu Dairy accelerated 2.04 percent, New World Development tanked 1.86 percent, CSPC Pharmaceutical rallied 1.82 percent, Industrial and Commercial Bank of China tumbled 1.26 percent, Galaxy Entertainment skidded 1.14 percent, Ping An Insurance and Hang Lung Properties both jumped 0.92 percent, CITIC retreated 0.89 percent, China Petroleum and Chemical (Sinopec) declined 0.86 percent, AIA Group climbed 0.84 percent, Power Assets surrendered 0.61 percent, China Resources Land sank 0.48 percent, China Mobile dropped 0.23 percent, WH Group shed 0.15 percent, Sands China added 0.15 percent, China Life Insurance collected 0.12 percent and Hong Kong & China Gas, Sun Hung Kai Properties, AAC Technologies and Techtronic Industries were unchanged.

The lead from Wall Street is uninspired as stocks opened higher on Monday, although the Dow and the S&P were unable to hold their gains and ended in the red.

The Dow shed 184.82 points or 0.62 percent to finish at 29,861.55, while the NASDAQ gained 62.17 points or 0.50 percent to end at 12,440.04 and the S&P 500 fell 15.97 points or 0.44 percent to close at 3,647.49.

The pullback by stocks came on concerns about the impact of new lockdown measures as the coronavirus death toll in the U.S. reached 300,000. New York Governor Andrew Cuomo and New York City Mayor Bill de Blasio have both warned that the city could be headed for another “full shutdown” unless the second wave of coronavirus infections is contained.

The warnings about a new round of shutdowns come despite the approval of the coronavirus vaccine developed by Pfizer (PFE) and BioNTech (BNTX). The CDC signed off on the vaccine following the Emergency Use Authorization issued by the FDA. Pfizer has commenced the first shipments of the vaccine to distribution centers across the country.

Crude oil prices climbed Monday amid hopes the rollout of a Covid-19 vaccine will help revive the economy and result in increased energy demand. West Texas Intermediate Crude oil futures for January ended higher by $0.42 or 0.9 percent at $46.99 a barrel, a nine-month closing high.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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