Hong Kong Stocks Drop, Reversing Gains, as Citic Pacific Slides
Hong Kong stocks slid, with the Hang Seng Index dropping for the first time in three days, as Citic Pacific Ltd. (267) declined after filing an injunction in Australian court to stop its mining right from being terminated.
Citic Pacific fell 4.3 percent. Tingyi (Cayman Islands) Holding Corp. (322), a maker of instant noodles and beverages, slumped 3.7 percent after JPMorgan Chase & Co. cut its rating on the stock on slowing sales growth. Longfor Properties Co. dropped 4.2 percent after its chairwoman split her stake in the company because of a divorce. Techtronic Industries Co. (669), a maker of power tools that counts North America as its biggest market, rose 3.5 percent as U.S. housing data beat estimates.
The Hang Seng Index (HSI) slid 0.2 percent to 21,228.28 at the close, reversing earlier gains of as much as 1 percent. More than twice as many shares fell as advanced in the 49-member gauge. Trading volume on the gauge was 24 percent below its 30- day average for the time of day, according to data compiled by Bloomberg. The Hang Seng China Enterprises Index (HSCEI) of mainland companies declined 0.6 percent to 10,227.24.
“Hong Kong has rebounded in recent days but there are still uncertainties including global economic growth and Europe’s debt problem, so there are some profit taking,” said Linus Yip, chief strategist at First Shanghai Securities in Hong Kong. “Overall it’s in an upward trend.”
The Hang Seng Index advanced 17 percent through yesterday from this year’s low on June 4 as economic data showed China’s slowdown may be bottoming and central banks around the globe added stimulus to spur growth.
The HSI Volatility Index (VHSI) slid 0.2 percent to 16.35, indicating traders expect a 4.7 percent swing in the equity benchmark in the next 30 days. Futures on the Hang Seng Index rose 0.1 percent to 21,269.
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