Hang Seng Index consolidates gains amid trade deal signing
The Hong Kong stock index is looking to close the week on a high, after opening Friday’s market 0.37% above its previous close.
The Hang Seng Index continues to consolidate the gains it has made since mid-December, rising as much as 2.53% this week.
Steepest gain since 13 December
The market sentiment has managed to become more upbeat – following a soft start to the week, thanks to easing US-Iran tensions, as well as announcements of the US-China trade deal signing next week.
Beijing officials said on Thursday that they will fly to Washington from January 13 to 15 to sign the phase one trade deal.
Later, US President Donald Trump also said both countries will begin phase two trade discussions ‘right away’, adding that an actual deal is likely to come after the US Presidential Election in November this year.
Following that, the Hang Seng edged up 1.7% to 28,561 on the day, the sharpest gain since 13 December last year, when US and China agreed to reduce tariffs on each country’s imports.
In terms of individual company stocks, Alibaba Group Holding Limited rose 2.2% to a record high of HK$215.40 per share. The Chinese e-commerce giant has gained 23% in market value since its launch on the Hong Kong bourse last November.
Local automakers also managed to see share prices rally, despite retail vehicle sales declining 7.5% in 2019, based on Passenger Car Association figures. Guangzhou Automobile Group Limited increased 0.2% per share to a 52-week high of HK$10.06, while BAIC Motor Corporation Limited rose 0.5% to HK$4.36 per share.
The optimism has carried over to the week’s final trading day. On Friday morning, the index got off to its best start of the week, opening at a five day-high of 28,665.14 – 0.37% higher than Thursday’s close.
As of 12pm, the benchmark has receded slightly by 0.3% to 28,576.92, but this is still above its previous close of 28,561.
Of note this Friday morning is the performance of Chinese sportswear brand Li Ning Company Limited, currently trading close to its all-time peak price. The company’s Hong Kong’s stocks soared nearly two percent right out the gate, adding to the 9.3% growth it made on Thursday.
Things are also looking bright for Sunny Optical Technology Group Company Limited. Its equity value rose 1.7% to an average of HK$143.90 per share in early trade, which is only a fraction below the 52-week high of HK$149 achieved on 16 December 2019.
Another story from this Friday’s market is the debut of Hong Kong-based electronics manufacturing company Wise Ally International Holdings Limited. Stock price opened as much as 7.2% below its initial public offering asking of HK$0.25 per share.
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