Hang Seng Index, trains operator MTR boosted by proposed ban on face masks
- MTR shares rebound after hitting eight-month low in intraday trading
- Poor US economic data to have less of an impact on H shares, analyst says
![A mask left behind by protesters in Hong Kong’s Wan Chai district following clashes on September 29. An analyst said the impact of a face mask ban would be ‘neutral’. He said: “how are they going to enforce [the ban]?’ Photo: AFP](https://cdn.i-scmp.com/sites/default/files/styles/1200x800/public/d8/images/methode/2019/10/03/70a344cc-e5be-11e9-8a10-b9721f28293e_image_hires_174541.JPG?itok=qT94MDah&v=1570095951)
The Hang Seng Index closed 0.3 per cent higher at 26,220.3 on Thursday, boosted by a Hong Kong government plan to ban face masks at public gatherings.
The city’s stock market opened lower in the morning, weighed down by local property developers energy companies, but towards the afternoon, it was lifted by a rebound in MTR shares, mainland Chinese health care and consumer stocks, as well as the Macau casinos.
Trains operator MTR gained 2.3 per cent following the news of the face mask ban, and closed at HK$44.5. The protests-hit company wiped out all the losses it made in the morning. At one point on Thursday it was trading at HK$42.75, its lowest level since late February.
Alex Au, managing director at Alphalex Capital Management, said the proposed ban on masks during public gatherings could have a positive effect on the local markets.
“It sounds useful to some extent … police might be able to arrest people even before they start destroying things,” he said. “At least, this might squeeze out the short sellers,” he added.
Kevin Leung, executive director of investment strategy at Hong Kong-based brokerage Haitong International, however, sounded more cautious and said the impact of a face mask ban – if passed – would be “neutral”.
