Hong Kong stocks join global sell-off amid worries about Trump administration and terrorism
Lenovo falls 3.4pc after posting surprise loss for first quarter; Power Assets down 2.8pc as shares trade ex-dividend
Hong Kong stocks finished the week just above the 27,000 mark after slipping 1 per cent on Friday, following a slump on Wall Street overnight as concerns mounted over US President Donald Trump’s ability to push through his economic agenda and after a terrorist attack in Barcelona.
The Hang Seng Index lost 1.08 per cent, or 296.65 points, to 27,047.57 while the H-shares index declined 1.00 per cent, or 107.77 points, to 10,693.65 points. Turnover stood at HK$84.48 billion.
Chinese online giant Tencent led the losses, declining 1.34 per cent to HK$325, following a sell off in tech shares in the US market.
“The tech sector has been driving the markets for a long time,” said Brad Sullivan, a broker at INTL FCStone Financial. “The real question is how long the rally can go on without major corrections.”
Separately, Hong Kong’s flagship carrier Cathay Pacific advanced 1.70 per cent to HK$12.00. Goldman Sachs upgraded the stock to a Buy and raised its target price to HK$14.6. The investment bank expected passenger demand to improve due to better economic conditions in mainland China and Hong Kong.
Credit Suisse upgraded the airline’s rating to neutral from underperform and increased the target price to HK$11.3.
