Hong Kong Weakens, Financial and Retail Sectors Pressure Index
The Hang Seng Index weakened again on Tuesday (June 9), dropping 64 points (0.3%) to 24,600. This marked the fifth consecutive day of declines and kept the index near its lowest level since late March, reflecting still-fragile sentiment in the Hong Kong market.
The decline occurred despite news of easing Middle East tensions after Israel and Iran halted their hostilities, and sentiment toward AI-themed stocks began to improve. However, investors appeared to be less confident enough to aggressively invest in riskier assets.
Sectorally, financial, retail, and energy/mineral stocks were the main drags. Some stocks weighing on the index included AIA (-1.6%), Lenovo (-0.3%), Knowledge Atlas Technology (-7.8%), and Xiaomi (-1.2%).
Meanwhile, some technology stocks held their own. Tencent jumped 3.4% and SMIC rose 0.9%, helping the index pare losses from earlier session lows.
The market is also holding back due to concerns about China's perceived lack of solid economic recovery, coupled with a wait-and-see attitude ahead of the release of China's trade balance data. This data has the potential to be the next catalyst for sentiment direction and sector rotation in the short term. (Asd)
Source: Newsmaker.id
