Update | Hong Kong stocks edge lower as energy sector sell-off is sparked by overnight drop in oil prices
Hang Seng loses 0.09 per cent to 27,225.89 in mixed day’s trade, that also saw banks rise, and Tencent fall 1.6pc ahead of its interims on Wednesday
Hong Kong stocks inched lower on Tuesday, as shares in the energy sector tumbled while mainland bank stocks advanced.
The Hang Seng Index lost 0.09 per cent, or 24.34 points, to 27,225.89 while the H-shares index added 0.47 per cent, or 50.54 points, to 10,757.78 points. Turnover stood at HK$91.02 billion (US$13.6 billion).
Gains were led by commercial banks, as China’s official statistics showed total profit for commercial lenders climbed in the first half. ICBC was the best performing blue chip stock, up 2.8 per cent to HK$5.55. China Construction Bank added 1.09 per cent to HK$6.52.
China’s banking regulator issued a statement last night saying first-half profits for commercial lenders rose 7.9 per cent from the same period in 2016, while the level of non-performing loans in June did not increase from March.
“Investors are expecting interim results from some major banks this week,” said Peter So, managing director and co-head of research at CCB International Securities in Hong Kong. “The results of the large-cap banks will be a good indicator of market movement and the economy in the second half of this year.”
Investors were also looking out for interim results from Chinese online giant Tencent on Wednesday. The company’s stock dropped 1.61 per cent to HK$318.8, helping to drag down the indices.
