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Technology stocks fell to drag down the market.
The market opened lower on Wednesday. Hang Seng index opened down 129 points, H share index down 58 points and technology index down 103 points. Tencent lost 1% for 29-point loss. ...
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Technology stocks fell to drag down the market.
Analyst : Lun Sheung Nim (CEO, GEO Securities Limited)
The market opened lower on Wednesday. Hang Seng index opened down 129 points, H share index down 58 points and technology index down 103 points. Tencent lost 1% for 29-point loss. AIA lost 0.4% for 11-point loss. Wuxi Biologics lost 2.7% to top the losers for 23-point loss. Ping An lost 1.2% for 20-point loss. HSBC lost 0.93% for 22-point loss. Alibaba lost 1.6% for 21-point loss. The market fell further after opening. Hang Seng index fell to a low of 28325, down 232 points. Then, the market had support at low level and turned from loss to gain. Banks led the rebound. CCB rose 2.3% for 36-point gain. HSBC rose 0.52% for 12-point gain. Hang Seng Bank rose 3.75% to become the top gainer for 10-point gain. ICBC rose 1.8% for 16-point gain. Xiaomi rose 1.6% for 16-point gain. Inflation is the on the rise. Commodities rose. Metal stocks rose. Angang Steel rose 2.54. Chongqing Iron rose 3.6%. IRC rose 5.5%. Non-ferrous stocks rose. Jiangxi Copper rose 1%. Chalco rose 1.6%. Luoyang Moly rose 2.7%. MMG rose 3.3%. L’Occitane reported strong sales growth in the fourth quarter. Brokers upgraded its outlook. Share price rose 12%. The market was range bound. Hang Seng index closed the morning up 2 points, H share index up 18 points but technology index down 125 points. Turnover was $54.7 billion.

The market turned from gain to loss in the afternoon. Hang Seng index lost more than 200 points. Technology stocks led the fall. Tencent lost 1.6% for 45-point loss. Wuxi Biologics lost 4.73% for 41-point loss. AIA lost 1.1% for 30-point loss. Sands lost 4.87% for 12-point loss. Galaxy lost 2.5%. Restaurant shares fell. Haidilao lost 6.12% to become the top loser. Shabu Shabu lost 2.1%. Jiumaojiu lost 2.6%. CCB rose 1.6% for 26-point gain. Hang Seng Bank rose 3.2% for 9-point gain to lead the blue chips. Hang Seng index fell to a low of 28341, down 216 points. SAAS shares fell. Newborn Town lost 3.2%. Weimob lost 3.4%. Ming Yuan Cloud lost 6.6%. Bonjour soared 64% as it entered agreement with Huawei to development online shares. Shipping stocks soared. Cosco Holdings rose 4.75%. Cosco Development rose 12%. The market rose slightly in late trading. Hang Seng index closed down 139 points, H share index down 43 points and technology index down 176 points. Turnover was $101.2 billion.

Overnight, overseas markets mostly rose. EU’s PMI soared. Stock markets rose sharply. DAX rose 314 points. CAC rose 87 points and FTSE rose 116 points. US markets were mixed. Dow Jones rose 97 points; S & P rose 3 points. Yet, technology stocks fell. Nasdaq lost 51 points. Hong Kong ADR’s rose 43 points. Night future rose 78 points. China’s stock markets reopened today after the Labour Day holiday. Turnover will increase today. We expect the market to rise today.
 
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