Hang Seng Falls Sharply, Trade Sector Leads!
The Hang Seng Index weakened for the third consecutive day in Hong Kong trading on Thursday (June 18th). The index fell 1.6%, or 387.35 points, to 23,924.81, its biggest daily decline since May 15th.
Market pressure was quite widespread, with 75 of the 93 stocks in the index closing lower, while only 17 stocks advanced. The trade and industrial sectors were the main drags, with three of the four sectors declining.
Alibaba Group was the biggest contributor to the index's decline, with its shares falling 1.9%. Meanwhile, China Overseas Land & Investment recorded the deepest decline, falling 9.0%, adding to pressure on Hong Kong market sentiment.
In the short term, the Hang Seng remains in a weak phase. The index is down 3.2% so far this week and is headed for its biggest weekly decline since the week ending March 6th. In the past 30 days, the index has weakened 6.8%, while in the past five days it has fallen 1.3%.
Valuation-wise, the Hang Seng is trading at a price-to-earnings ratio of 12.6 times trailing earnings and 11 times estimated earnings for next year. Market focus will now be on the direction of major technology stocks, the Chinese property sector, and whether selling pressure on the Hong Kong Stock Exchange begins to ease after a series of declines. (asd)
Source: Newsmaker.id
