Tuesday, 28 July 2015 15:39
HONG KONG: Hong Kong stocks ended 0.62 percent higher Tuesday, clawing back some of the previous day’s losses that came in line with a sharp plunge in Shanghai.
The benchmark Hang Seng index (HSI)added 151.98 points to 24,503.94 on turnover of HK$ 115.27 billion (US$ 14.87 billion).
Mainland markets collapsed Monday, with Shanghai diving 8.48 percent — its heaviest loss in eight years — on fears that government measures put in place after a recent rout will not hold in place. The losses continued Tuesday, despite assurances from Beijing that it will work to stabilise shares.
However, while the HSI suffered an early sell-off, it recovered by the end of the morning session, with analysts saying energy firms were boosted by pledges by state-owned parent companies that they will buy back shares.
Coal giant China Shenhua Energy added 0.55 percent to HK$ 14.60, having surged 4.7 percent at one point. PetroChina gained 2.01 percent to HK$ 7.62 and CNOOC was up 2.67 percent at HK$ 9.62.
“While market sentiment remains poor, there is no doubt some Hong Kong-based energy stocks have been oversold,” Helen Lau, an analyst at Argonaut Securities (Asia) in Hong Kong, told Bloomberg News. “Some value-hunting investors are ready to jump in.”
Investors are awaiting the latest policy meeting of the Federal Reserve’s policy committee, hoping for clues about when it plans to raise interest rates.
Analysts suggested the latest events in China could play a key role in the board’s decision, possibly holding on until December before announcing a hike, instead of September as some have predicted.
Among other stocks in Hong Kong, Tencent rose 0.62 percent to HK$ 146.50, HSBC gained 1.62 percent to HK$ 68.85 and China Mobile advanced 1.09 percent to HK$ 97.75.
However, insurer Ping An lost 2.44 percent to HK$ 46.00 and conglomerate China Resources fell 2.73 percent HK$ 21.40.
