Hang Seng Strengthens, Supported by Technology Stocks
Newsmaker.id - The Hang Seng Index rose 0.8%, or around 192 points, to 24,367 on Monday (July 13th). Gains in technology and property stocks offset renewed concerns about geopolitical conditions in the Middle East.
Investor sentiment remained cautious after oil prices rose and US stock futures weakened following the latest US attack on Iran. Uncertainty over the status of shipping through the Strait of Hormuz contributed to high market volatility.
Hong Kong property stocks received support ahead of the launch of several new residential projects by major developers, including Sun Hung Kai Properties and Wheelock Properties. These launches come despite expectations of more moderate home price growth.
Market sentiment was also boosted by news that Shein has obtained approval from China's securities regulator to proceed with its planned initial public offering in Hong Kong. This approval paves the way for one of the city's largest stock listings in recent years. Sun Hung Kai Properties shares rose 1.1%, Tencent gained 0.7%, Lenovo added 0.9%, while Knowledge Atlas Technology jumped 4.9%. Knowledge Atlas is listed on the Hong Kong Stock Exchange under the ticker code 2513.
Market Impact
Hang Seng: The index has the potential to maintain its gains as long as technology and property stocks remain supported. However, gains are still vulnerable to a reversal if the conflict in Iran escalates.
Property Sector: The launch of new housing projects could improve sentiment toward Hong Kong developers, although a slowdown in home price growth remains a risk.
Technology Stocks: The gains of Tencent, Lenovo, and other technology companies indicate that investor interest in growth sectors remains strong.
Hong Kong IPO Market: Approval of Shein's IPO plan has the potential to increase listing activity and strengthen Hong Kong's position as a fundraising hub.
Oil and Geopolitics: Rising oil prices and uncertainty over the Strait of Hormuz could dampen risk sentiment, increase corporate costs, and limit gains in Asian markets. (CP)
