Stocks Rise for Cathay Pacific, Hong Kong Property and Telecom Sectors
Telecommunications, Hong Kong property and Cathay Pacific Airways stocks all rose, despite the air of concern in both the Mainland Chinese and Hong Kong stock markets due to the unrelenting protests in Hong Kong.
All the key indexes fell just about 3 percent at closing time overnight, carrying over the negativity into Asian markets. The Hang Seng felt the ripple effects as well, but the way it managed to bounce back hints at bottom fishing and bargain hunting by investors.
The Hang Seng Index got to 25,495.46 points from 25,000 (its lowest point for the year) after a rise of 0.76 percent. While the Shanghai Composite Index climbed 0.25 percent, concluding at 2,816 points.
Cathay Pacific Airways stocks climbed 5.7 percent, seeing gains for two consecutive days after a fall to a 10-year low earlier in the week owing to several of its staff’s active participation in the protests.
The rise in stocks was in part the result of the airline taking steps to discipline the staff that took part in the Hong Kong protests. It prohibited all Cathay crew members that were involved in the protests from flying in, out or through China.
As for the telecommunications sector, it saw gains on both the Hang Seng Index and the Shanghai Composite Index. The stocks climbed 6.25 percent on the Hang Seng, owing in large part to China Unicom, the world’s third biggest mobile service provider. It rose 4.8 percent on the Shanghai Composite, steered by the firm’s mainland business, China United Network Communications.
China Unicom saw a 16.3 percent annual raise in first-half net income to 6.8 billion Yuan. The earnings however reflect that the 5G capital expenditure is not as massive as anticipated, which is seen as a plus for telecom operators. The company is currently trying to collaborate with other mobile carriers, such as China Mobile and China Telecom, in order to build a 5G network with joint investment starting as early as next year.
The property sector in Hong Kong that had been performing poorly in recent weeks, amid a slump in the overall market owing to rising protests and the escalation in the US-China trade conflict, also saw a rise in stocks. Sun Hung Kai Properties and Link Real Estate Investment both climbed by 4 percent, whereas CK Asset Holdings rose by 2.7 percent.