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Kathleen Magramo

Azar Zaidi

The mainland Chinese markets are shut on Friday for the Lunar New Year holiday and will resume trading on January 31 now, a break that might prove to be the only respite for stocks amid a growing coronavirus outbreak. The numbers are rising – 25 dead, but 679 cases of infection and eight cities under lockdown – but the outbreak has not yet been classified as a global health emergency by the WHO.
 
The Hong Kong market, which fell below the psychologically important support level of 28,000 points on Thursday, will trade for half a day on Friday, and is expected to open lower.
If you would like the Live Stocks Blog emailed to you each morning, click here. 
– Kathleen Magramo and Azar Zaidi in Hong Kong 
Note: Information in this blog is on an "as is" basis and not a solicitation or offer to buy or sell any securities or otherwise; and is not investment/professional advice or services in this regard.  It is subject to our T&C.  SCMP (as defined in T&C) shall not be liable for any loss, damage and costs relating to any investments in securities or otherwise in this connection.


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Hong Kong Stock Exchange

Hong Kong's Hang Seng Index ends shortened Friday trading session 0.2 per cent higher

Business

Markets

Year of the Pig closes 0.15 per cent lower
Tech investors boosted by Friday rebound


The Hang Seng Index rose 0.2 per cent to close at 27,949.64 on Friday afternoon. China Mobile rose the most during the abbreviated trading session, rising by 2.35 per cent to HK$69.7. The Year of the Pig, on the whole, closed 0.15 per cent lower.


Stocks

Coronavirus pandemic

Coronavirus pandemic: All stories

Live

Overnight markets/what futures foretell:  – The US markets were mixed overnight on Thursday. The S&P 500 Index increased by 0.1 per cent, the Nasdaq Composite gained 0.2 per cent, but the Dow Jones Industrial Average fell 0.09 per cent.  – The Hang Seng Index futures fell 0.4 per cent on Friday morningIPO debuts: NoneEconomic statistics/central bank action: None to noteAnnouncements: The Shanghai and Shenzhen stock exchanges are closed for the Lunar New Year holiday, while Hong Kong will end trading by noon.


Morning Guidance

Alibaba Group Holding-backed parenting platform Babytree (1761 HK) expects it will record a larger loss for the six months ending December 31, 2019, compared to its 98.3 million yuan (US$14.2 million) loss in the first half of last year, according to an exchange filing. Revenues declined as advertising clients decreased their budgets when working with Babytree, while the group also incurred higher expenses in marketing and business development in the second half of the year. The South China Morning Post is owned by Alibaba.
AB Builders Group (1615 HK), a Macau-based construction firm, expects a net profit decline after tax of not less than 40 per cent, at around 37.1 million patacas (US$4.6 million), for the year ending December 31, 2019, it said in an exchange filing. Construction projects with lower margins contributed more to its revenue, while the Macau economy also faced an economic slowdown. Costs also increased due to expansion in the Hong Kong market.
Hong Kong-listed Australian gold miner Dragon Mining (1712 HK), said it will record a net profit ranging from A$5.8 million (US$3.97 million) to A$7.2 million for the year ending December 31, 2019. In comparison, the company suffered a net loss of A$9.5 million in the previous year. The miner said the improvement was due to increased production of high-grade ores in the Orivesi Mine in Finland, and start of the first batch of ore processing in Fäboliden Gold Mine in Sweden.
Guangzhou-headquartered developer China Aoyuan Group (3883 HK) said it had reached an agreement with an unnamed group of lenders on a dual currency term loan facility, comprising a HK$1.05 billion (US$135 million) loan and a US$95 million loan. The terms for both loans are three years.The annual interest rate for the Hong Kong dollar loan facility is Hibor (Hong Kong interbank offered rate) plus 4.3 per cent, while that for the US dollar loan is the Libor (London interbank offered rate) plus 4.3 per cent. The company said it will use the loan mainly for refinancing existing offshore debt.
– Kathleen Magramo and Georgina Lee


Overnight filings

The Hang Seng Index rose 0.09 per cent to 27,935.42 at market open, and remains below the 28,000-point support level.
– Kathleen Magramo 


Hang Seng Index rises 0.09 per cent at market open

Casino stocks continue to fall in Hong Kong after Macau’s leader Ho Iat Seng said on Thursday night that the casinos could be closed if the Wuhan coronavirus outbreak is not contained. China’s only gambling hub confirmed a second case of the illness on Thursday.   Wynn Macau (1128 HK) declined by 2.31 per cent to HK$17.74, while MGM China Holdings (2282 HK) fell by 2.42 per cent to HK$12.08. Melco International (0200 HK) dropped by 1.41 per cent to HK$18.24, Sands China (1928 HK) shed 0.37 per cent to HK$40.65 and Galaxy Entertainment Group (0027 HK) fell by 0.37 per cent to HK$55.05.
  The city’s tourism board has already cancelled all Lunar New Year celebrations, including a fireworks show and a parade.
– Kathleen Magramo 


Casino stocks fall further after Macau leader says they could be closed following Wuhan outbreak

Beijing Tong Ren Tang Chinese Medicine (03613 HK) gained 2.5 per cent to HK$12.48 after the Wuhan authorities said on Thursday night that the province was encouraging and adopting the use of Chinese medicine to cure patients affected by the Wuhan coronavirus. 
– Iris Ouyang 


Chinese medicine maker rises on reports Wuhan is encouraging use of traditional remedies

Listed Chinese state-backed companies fell to one month lows on Friday morning. PetroChina (0857 HK) fell to HK$3.7 from its last high of HK4.2, while Chinese conglomerate Citic (0267 HK) dropped to HK$9.51 against its last high of HK$10.44.
– Kathleen Magramo 


Listed Chinese state-backed companies fall to one-month lows

Semiconductor Manufacturing International Corporation (SMIC, 981 HK), the Shanghai-based integrated circuit foundry and technology company, rose 4.3 per cent to HK$16.16 after Goldman Sachs raised its target for SMIC shares by 12.9 per cent to HK$16.18. Goldman expects SMIC’s profit growth will be stronger on higher revenue from products and the outlook of China’s chip market, according to media reports.
– Iris Ouyang 


SMIC rises after Goldman Sachs raises target price

Telecommunications giant China Mobile (0941 HK) rose 2.8 per cent to HK$69.55, after it announced it would adopt a share option scheme for employees that will improve company governance and motivate staff.
– Kathleen Magramo 


China Mobile rises on share option scheme for employees

China Boqi Environmental (2377 HK), a flue gas treatment company, climbed 7.1 per cent to HK$1.35 in Hong Kong on Friday morning, after First Shanghai Financial Group said it would maintain its buy rating for Boqi’s shares, and that the company’s target price within the next twelve months will increase 35 per cent to HK$1.7. Boqi announced this month that its two subsidiaries had entered into lease agreements with Citic Leasing, with Boqi disposing of equipment for 350 million yuan in total.
– Iris Ouyang 


China Boqi rises after First Shanghai Financial Group maintains buy rating

The Hang Seng Index rose 0.2 per cent, or 40.52 points, to close at 27,949.64 on Friday afternoon. China Mobile (0941 HK) rose the most during the abbreviated trading session, rising by 2.35 per cent to close at HK$69.7.
– Kathleen Magramo 


Hang Seng Index rises 0.2 per cent at close

Investors who have bought technology stocks were able to take profits thanks to a rebound on Friday, said Louis Tse Ming-kwong, managing director at VC Asset Management.
  “As tech stocks went down yesterday, the rebound benefited investors with pocket gains [on Friday],” Tse said. “Looking ahead, investors focused on mainland markets will still be quite positive about technology stocks boosting their portfolios.
  “Institutional investors have been upbeat about SMIC after Huawei placed an order, which is attracting a lot of buy-side calls,” he said.Chip maker SMIC (0981 HK) rose 4 per cent, closing Friday at HK$16.12.
– Kathleen Magramo 


Tech investors boosted by Friday rebound

The Hang Seng Index closed the Year of the Pig at 27,949, down 41 points or 0.15 per cent. It performed better than in the previous year, the Year of the Dog, during which it dropped 10 per cent. The US-China trade war as well as the anti-government protests, now in their eighth month, contributed to many ups and downs over the year, with the index swinging by more than 5,400 points in the this period.
– Enoch Yiu 


Year of the Pig closes 0.15 per cent lower

Hong Kong's Hang Seng Index ends shortened Friday trading session 0.2 per cent higher

Year of the Pig closes 0.15 per cent lower Tech investors boosted by Friday rebound

Year of the Pig closes 0.15 per cent lower

Tech investors boosted by Friday rebound