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Hang Seng Index hit by sell-off, Straits Times Index bucks trend

The Hang Seng Index ended the week 1.2% lower amid a global equity sell-off, while the Straits Times Index managed to gain nearly 2%.

  • Hong Kong’s Hang Seng Index declined 1.22% this week
  • The sell-off was due to a global sell-off in equities which first began in the US in anticipation of potentially higher US bond rates
  • Meanwhile, Singapore’s Straits Times Index bucked the negative trend, closing 1.8% higher
  • Trade the Hang Seng Index or Straits Times Index, long or short, with an IG account

Hang Seng Index: ↓0.47%

The Hang Seng Index (HSI) closed 0.47% lower, or 138.50 points, on Friday (05 March 2021), as it remained weighed down by a global tech sell-off and fears around potential interest rate hikes.

The blue-chip benchmark slipped for a second straight session to finish at 29,098.29, down 1.22% for the week.

The tech stock correction, which began in the US on Wednesday (03 March) as a response to potentially higher US bond yields, saw companies like Kuaishou Technology and Xiaomi lose nearly 5% and 4% of their share prices on Friday alone.

The massacre also led to Chinese technology giants Alibaba Group and Tencent’s share prices sinking as much as 4.7% and 7.4% respectively this week.

Meanwhile, PetroChina ended the week 3.17% higher, after OPEC said it plans to keep production steady through April 2021.

On Friday, China’s National People’s Congress also kicked off its ‘Two Sessions’ meeting in Beijing. Some key takeaways include an economic growth target for 2021 at ‘above 6%’, which is below most economists’ estimates of over 8%.

Straits Times Index: ↓0.13%

The STI Index suffered smaller losses of 0.13% on the day, closing at 3,011.00. Only ten of the index’s 30 constituents experienced gains.

The day’s top gainers included: DairyFarm (+1.4%), Jardine Cycle & Carriage (+1.34%) and Jardine Strategic Holdings (+1.29%).

Top losers were: SATS (-1.6%), ST Engineering (-1.54%), DBS (-1.25%) and Keppel DC Reit (-1.11%).

Across the whole week, Singapore’s large cap barometer was able to buck the bond yield-driven correction trend, rallying roughly 1.8%.

The STI opened the week at a low of 2,960.838, before rising steadily to peak at 3,026.20 on Friday afternoon.

How to trade indices with IG

Are you feeling bullish or bearish on the Hang Seng Index or STI Index?

Either way you can buy (long) or sell (short) the asset using derivatives like CFDs offered on IG's industry-leading trading platform in a few easy steps:

  1. Create a live or demo IG Trading Account, or log in to your existing account
  2. Enter <Hong Kong 50 Index> or <Singapore Index> in the search bar and select the instrument
  3. Choose your position size
  4. Click on ‘buy’ or ‘sell’ in the deal ticket
  5. Confirm the trade

The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer.

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