Hang Seng Index drops 201 points as tech and financial stocks weigh

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21st June 2024 – (Hong Kong) The Hang Seng Index opened on a downward note, experiencing a decline of 136 points to reach 18,199. Throughout the day, the index faced further losses, with a maximum drop of 284 points, hitting a low of 18,050. Finally, the index settled at a decrease of 201 points or 1.1%, closing at 18,133. The market sentiment remained cautious as investors closely monitored the performance of various sectors.

Tech stocks played a significant role in dragging down the overall market, with notable declines seen in major companies. Tencent recorded a 1.5% drop, while Alibaba saw a 1.6% decrease. Meituan, JD.com, Xiaomi, and Kuaishou also experienced losses of 1.1%, 2.1%, 1.7%, and 0.6% respectively. The tech sector faced selling pressure as investors reassessed the valuation and growth prospects of these companies.

Furthermore, financial stocks encountered downward pressure during the trading session. HSBC Holdings registered a 0.2% decline, while Hong Kong Exchanges and Clearing experienced a 1.6% decrease. AIA Group and Ping An Insurance also faced losses of 1% and 0.6% respectively. The decline in financial stocks reflected the cautious sentiment prevailing in the market, influenced by factors such as global economic uncertainties and regulatory developments.

On a positive note, gold mining stocks performed well, benefiting from the upward trend in international gold prices. Zijin Mining Group Ltd recorded a 0.4% increase, while Zhaojin Mining saw a notable rise of 2.1%. Shandong Gold Mining Co., Ltd also experienced a gain of 1.6%. The positive performance of these stocks provided some respite amidst the broader market downturn.