Hong Kong Stocks Decline, Caps Monthly Drop as Utilities Retreat
Bloomberg, (31/5) -- Hong Kong stocks fell, with the benchmark index
capping a monthly drop, as utilities extended declines. Foxconn
International Holdings Ltd. jumped on a rating upgrade from Morgan
Stanley.
The Hang Seng Index lost 0.4 percent to 22,392.16 at the close, falling 1.5 percent drop for the month. The gauge fell a third straight week, its longest such streak since August 2012. The Hang Seng China Enterprises Index of mainland companies sank 0.9 percent to 10,599.21 before the release of the nation’s manufacturing report tomorrow.
“You can’t be bullish after the market fell so much but with foreign markets being so resilient you can’t be too bearish,” said Alex Wong, a Hong Kong-based director at Ample Capital Ltd. “Utilities remain weak as people are still selling high-yield stocks.”
The Hang Seng Index fell 1.2 percent this year through yesterday, with Hong Kong the only major developed market to decline, on signs China’s growth is slowing. The gauge is trading at 10.7 times estimated earnings, compared with 15 on the Standard & Poor’s 500 Index and 13.4 on the Stoxx 600, according to data compiled by Bloomberg.
Utilities had the biggest drop among the Hang Seng Composite Index’s 11 industry groups. Foxconn jumped 18 percent to HK$4.41, its biggest gain since November, after Morgan Stanley raised its rating on the stock and increased its target price to HK$5.5 from HK$3.1.
The Hang Seng Index lost 0.4 percent to 22,392.16 at the close, falling 1.5 percent drop for the month. The gauge fell a third straight week, its longest such streak since August 2012. The Hang Seng China Enterprises Index of mainland companies sank 0.9 percent to 10,599.21 before the release of the nation’s manufacturing report tomorrow.
“You can’t be bullish after the market fell so much but with foreign markets being so resilient you can’t be too bearish,” said Alex Wong, a Hong Kong-based director at Ample Capital Ltd. “Utilities remain weak as people are still selling high-yield stocks.”
The Hang Seng Index fell 1.2 percent this year through yesterday, with Hong Kong the only major developed market to decline, on signs China’s growth is slowing. The gauge is trading at 10.7 times estimated earnings, compared with 15 on the Standard & Poor’s 500 Index and 13.4 on the Stoxx 600, according to data compiled by Bloomberg.
Utilities had the biggest drop among the Hang Seng Composite Index’s 11 industry groups. Foxconn jumped 18 percent to HK$4.41, its biggest gain since November, after Morgan Stanley raised its rating on the stock and increased its target price to HK$5.5 from HK$3.1.
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