While Hong Kong stocks returned to green Friday, it didn’t stop them from suffering their worst weekly plunge in around two months.
At the close of trading in Hong Kong today, the Hang Seng Index (HSI) gained 118.48 points, bringing its total back passed 25,000. The largest gainer on the benchmark today was the personal hygiene products maker Hengan International Group Company Ltd., (HKEX: 01044) whose stock soared 7% to HK$66.85 per share.
Some other big winners today featured the medicine products firm Sino Biopharmaceutical Ltd., (HKEX: 01177) rising 4% to HK$15.14 per share and the power tools manufacturer Techtronic Industries Company Ltd., (HKEX: 00669) gaining 4% to HK$84.40 per share. The biggest loser Friday on the HSI was the global property and beverage firm Swire Pacific Ltd., (HKEX: 00019) whose stock slipped nearly 2% to HK$40.15 per share.
Overall, the HSI dropped 2.5% for the week, marking the largest fall since May 22 when Beijing announced intentions to implement a national security law to tighten its grips over Hong Kong. The fall this week is attributed to poor retail sales reported by China Thursday which fell short of projections. The report also impacted Shanghai’s benchmark the SSE Composite, which suffered its worst weekly fall in five months as it tumbled 4.5 Thursday. However, the index also ended Friday in the green, adding 4 points.
“Both Hong Kong and [mainland] A share markets were stable, with Moutai up 2 per cent with heavy turnover. This was a good sign indeed,” Alan Li, a portfolio manager at Atta Capital said.
He added, “The alternative might have been even more panic selling.”
It appears that Hong Kong has now entered the second wave of Covid-19 cases--infections hit a record high of 67 on Thursday. The potential spread of Covid-19, Sino-U.S. trade tensions, and economic growth will be all factors that investors will be keeping a close eye on.