Hong Kong stocks edged higher on Monday, led by utility and services stocks, but gains were capped by increasing pressure from profit-taking after a two-week long rally.
The benchmark Hang Seng index rose for the third straight day, up 0.3 per cent, to 22,558.69 points, after last week having the strongest weekly gains in three months,
The Hong Kong China Enterprises Index lost 0.1 per cent on Monday, to 9,602.32 points.
Analysts said the market was keeping a close watch on the U.S. currency which extended gains from the previous session on Monday, after data showed a rebound in U.S. wages, pointing to sustained labour market momentum and more rate increases from the U.S. Federal Reserve.
“The dollar was still on track to rise this year and its influence on the Hong Kong market is not over yet,” said Linus Yip, strategist at First Shanghai Securities.
The stronger dollar exerted renewed pressure on the Yuan, which stabilized in offshore markets after last week’s surge, offering signs that Beijing was letting market forces dictate the direction of the Chinese currency in Hong Kong so long as the pace of depreciation remains within Beijing’s comfort zone.
Most sectors gained ground, with services and utilities stocks among the best performers.
Shares of China Gas Holdings and China Resources Gas Group jumped around 5 per cent and 6.4 per cent respectively after China pledged to extend tax waivers for importing some equipment for oil and gas development.
The articles are for information purposes only and Precise Investors shall not be held responsible for any errors, omissions or inaccuracies within it. Any rules or regulations mentioned within the website are those relevant at the time of publication and may not be the most up-to-date.
Precise Investors does not endorse any of the products or services that appear on it or are linked to it and are not liable for any action that you may take as a result of the content of this website, or losses or damage you may incur doing so.
There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.
Please remember that investments of any type may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.