Hang Seng Index soars past 28,000 in 2019’s final trading week
Hong Kong’s main stock benchmark has concluded the year’s final week of trading at a five-month high of 28,217.27.
There was no Christmas hangover for the Hang Seng Index this Friday morning (27 December), as it re-opened – after a two-day break – at a five-month high of 28,033.66.
The Hong Kong market benchmark was able to consolidate that number throughout early trade, as it quickly rose up 0.65% to 28,217.27 by 10.50am, staying around that mark through lunch break.
Property and technology soar, blue-chips stable
Chinese property developers drove most of that initial momentum, with Country Garden Holdings Company Limited leading the pack, as it rallied over 4% to HK$12.54 per share, its highest intraday price level since April.
China South City Holdings Limited and Wanda Group also kicked off the day with some positive news of their own, as they announced a cooperation deal that will see a new batch of commercial developments in Shenzhen. Share price of China South City immediately rose 6.3% after the market opened.
Technology titans Alibaba Group Holding Limited (Hong Kong) and Tencent Holdings Limited are also still trading around their historic peaks of HK$213.60 and HK$400.40 from earlier this week, respectively. Analysts stated that more gains can be expected for both companies’ Hong Kong listings.
As earlier reported today, Alibaba could also see its New York Stock Exchange shares push toward US$300 per share. Alibaba US and Hong Kong-listed shares are fungible.
Meanwhile, blue-chip stocks also continued to maintain gains from the pre-Christmas period, with Bank of China Hong Kong (Holdings) trading sideways around HK$27.40, and AAC Technologies Holding Inc clinging on to HK$66.55 per share.
Hang Seng to ‘power along’ into 2020
If there was a Santa Rally across markets this week, nowhere has this been as evident as with the Hong Kong benchmark, which has consistently stayed more than 100 points above the previous week’s (ending 20 December) average trading level. Analysts believe the Santa Rally could spill over into early January.
A large part of this resurgence can also be attributed to US and China’s recent trade truce. Since both countries reached an agreement regarding a phase one trade deal, the HSI has climbed nearly 1,000 points.
With US and China on track to signing an official treaty before the Chinese New Year in late January, the path to recovery is looking more certain than before. IG analyst Jingyi Pan also remarked that Asian markets, including the Hang Seng Index, are expected to ‘power along’ into 2020, despite some bumps along the way this year.
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