Hong Kong stocks fell, after the benchmark index rose to a five-month high yesterday, as developers declined and casino operators extended their drop.
Henderson Land Development Co., a Hong Kong builder controlled by billionaire Lee Shau-kee, led the drop on the Hang Seng Index after yesterday rising to its highest in a year. GCL-Poly Energy Holdings Ltd., the world’s biggest maker of polysilicon used in solar panels, fell 6.5 percent. Melco Crown Entertainment Ltd. slid a second day after Macau casino operators’ revenue missed estimates. China LotSynergy Holdings Ltd. surged 17 percent on a report that investors in the lottery company are in talks with Tencent Holdings Ltd.
The Hang Seng Index declined 0.6 percent to 23,151.71 at the close in Hong Kong, with almost three shares falling for each that rose. Trading volume was 21 percent lower than the 30-day average. The Hang Seng China Enterprises Index, also known as the H-share index, lost 0.5 percent to 10,317.82.
“There may be some profit-taking in the overall market, just like with Hong Kong property stocks,” said Linus Yip, a strategist at First Shanghai Securities in Hong Kong. “But the selling pressure won’t be strong as the market is still quite firm.”
The Hang Seng Index pared losses to less than 0.1 percent this year through yesterday after falling as much as 9.1 percent. Shares have rebounded on signs of strength in manufacturing and amid optimism the government will act to meet its growth goal. The index traded at 10.8 times estimated earnings today, compared with 7.2 for the H-share index and 16.3 for the Standard & Poor’s 500 Index yesterday.
Henderson Land declined 2.8 percent to HK$50.20. Sun Hung Kai Properties Ltd., Hong Kong’s second-largest developer, fell 1.7 percent to HK$106.10 after yesterday climbing to a nine-month high.
Futures on the S&P 500 fell less than 0.1 percent today. The underlying gauge was little changed yesterday as investors awaited private data on the U.S. labor market and a European Central Bank decision on whether it will cut interest rates.
Casino operators dropped yesterday after Macau’s Gaming Inspection & Coordination Bureau said the city’s gaming revenue rose 9.3 percent in May from a year earlier. Analysts surveyed by Bloomberg had been expecting 14.5 percent growth.
Melco sank 4 percent to HK$86.65 to extend yesterday’s 1.5 percent drop. Galaxy Entertainment Group Ltd., controlled by billionaire Lui Che-woo, retreated 2 percent to HK$58.85. Wynn Macau Ltd. retreated 1.1 percent to HK$31.50.
GCL-Poly fell 6.5 percent to HK$2.31, while silicon-wafer producer Solargiga Energy Holdings Ltd. lost 2.6 percent to 37 Hong Kong cents. The U.S. Commerce Department yesterday made a preliminary ruling imposing duties of as much as 35 percent on solar panels produced by Chinese companies as part of an anti-subsidy case.
China LotSynergy surged 17 percent to 81 Hong Kong cents. China.com.cn reported company Chairman Lau Ting and another shareholder are in talks to sell a stake to Tencent, Asia’s largest Internet company. Lottery sales in China grew 16 percent to 80 billion yuan ($12.8 billion) during the first three months of this year, spurred by games played on smartphones and personal computers, according to China LotSynergy’s website.