Friday, 9 November 2012

Hong Kong suffer worst loss since July

Hang Seng Index
Hong Kong shares suffered their worst loss since July 23 on Thursday, as investors took profits on recent outperformers and refocused their attention on the prospect of United States fiscal woes roiling financial markets.
Reuters reported that Thursday’s pullback came after US President Barack Obama’s successful re-election bid helped the Hang Seng Index near 2012 highs on Wednesday, with investors relieved that capital inflows from loose US monetary policy will continue.
The Hang Seng Index dived 2.4 per cent to 21,566.9, its worst single-day fall since July 23, reversing the benchmark’s strong start to November. The China Enterprises Index of the top Chinese listings in Hong Kong, which outperformed Asian peers in October, sank 2.7 per cent.

In the mainland, the CSI300 Index of the top Shanghai and Shenzhen listings suffered a fourth-straight loss, sliding 1.8 per cent. The Shanghai Composite Index lost 1.6 per cent. Thursday’s losses were their worst since October 26.
Losses in both Hong Kong and China markets came in higher volumes than Wednesday. In Hong Kong, turnover was the highest since September 24.
“Europe and the fiscal situation in the US are the focus right now, but if the US situation stays under control, the uptrend for Chinese shares, particularly ones listed in Hong Kong, remains intact,” said Alan Lam, Julius Baer’s Greater China equity analyst.
“But it’s still very difficult to look beyond a three- or six-month window at this point, although the next batch of data tomorrow should do more to reassure investors that the slowdown in China is stabilising,” he added.

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