Turnover surges to record $302b amid stock rotation
Hong Kong's stock market turnover hit a record HK$302.59 billion yesterday as investors switched to old-economy shares from new-economy shares, dragging the Hang Seng Index down by 1.06 percent. The benchmark index fell 324 points to 30,319 after it opened at an day-high at 31,071. Net inflows of...
Tuesday, February 23, 2021
Hong Kong's stock market turnover hit a record HK$302.59 billion yesterday as investors switched to old-economy shares from new-economy shares, dragging the Hang Seng Index down by 1.06 percent.
The benchmark index fell 324 points to 30,319 after it opened at an day-high at 31,071.
Net inflows of southbound capital through the Stock Connect was only HK$7.5 billion, far below the daily average of over HK$10 billion.
Hang Seng Index futures were slightly up 0.39 percent, as of 07:40 pm.
Among blue-chips, WuXi Biologics (2269) was the worst performer, plunging 7.94 percent.
Local real estate shares rose on hopes that the vaccine rollout would foster an economic recovery. Great Eagle (0041) surged 12.77 percent to a 52-week high while Sino Land (0083) hit a 15-month high, rising 5.08 percent. New World Development (0017) was up 4.3 percent. Sun Hung Kai Properties (0016) was up 3.86 percent and Hysan Development (0014) rose 1.63 percent to a 52-week high.
Three telecom giants also rose, with China Mobile (0941) up 3.53 percent. China Telecom (0728) up 4.65 percent and China Unicom (0762) rising 6.3 percent, the best performer among blue-chip stocks.
Resources shares performed well as the copper prices rose to a nine-year high. Chongqing Iron & Steel (1053) surged 71.26 percent, MMG (1208) surged 10.7 percent, Jiangxi Copper (0358) rose 15.32 percent, and Aluminum Corporation of China (2600) rose 15.13 percent.
In the new-economy sector, Meituan (3690) fell 5.52 percent and Alibaba (9988) went down 2.49 percent after Chinese regulators summoned Meituan and Alibaba's Ele.me, telling them to bear responsibilities over food safety, theXinhua news agency reported.
Tencent (0700) fell by 3.71 percent, Xiaomi (1810) was down 5.38 percent, and JD.com (9618) fell 3.8 percent.
The Hang Seng Tech Index decreased by 5.53 percent or 583.56 points to 9,977.
Analysts believed capital will flow back to new-economy shares once old-economy shares rise to a certain level.
In the US market, Dow Jones futures fell 0.57 percent as of 7.34 pm.
In other news, the US Congressional Budget Office said a financial transaction taxe would bring in at least US$777 billion (HK$6 trillion) to the federal government over 10 years. The move - favored by progressives but despised by Wall Street - comes in the wake of the GameStop trading frenzy which led to concerns about investor protection and market integrity.