Hong Kong Stock Exchange Corrects After Sharp Rally
The Hang Seng Index in Hong Kong closed down 0.5% to 25,752.40 in the latest trading session, after posting a strong 3.1% surge in the previous session. This correction indicates the market is beginning to adjust after the sharp rally, although the index still posted a fairly solid weekly performance. So far this week, the Hang Seng has strengthened by around 2.5%, and is on track for its best weekly gain since late November of last year.
The biggest pressure on the index came from Alibaba Group Holding Ltd., which was the main contributor to the decline after its shares fell 2.9%. Meanwhile, Longfor Group Holdings Ltd. recorded the deepest decline among major stocks, with a decline of 5.6%. Of the 90 stocks in the index, 53 fell, 36 rose, and the rest remained unchanged, indicating that market pressure was more dominant this session.
Sector-wise, the decline was led by trading and industrial stocks, which were the sectors under the greatest pressure. Nevertheless, the broader picture still shows the Hang Seng's strong performance. In the last five days, the index has risen by around 4%, while in the last 30 days it has strengthened by 1.4%. In fact, in the last 52 weeks, the Hang Seng has risen by around 27%, although it still lags behind the MSCI AC Asia Pacific Index, which has risen by 50% over the same period.
In terms of valuation, the Hang Seng is currently trading at a price-to-earnings (P/E) ratio of 13.5 times trailing earnings and approximately 11.5 times estimated one-year forward earnings. The index also offers a dividend yield of 2.9% based on the last 12 months, with the total market capitalization of its members reaching approximately HK$30.6 trillion. This data indicates that despite daily corrections, Hong Kong's market valuation remains a concern for global investors, particularly in terms of growth opportunities and returns.
Meanwhile, the Hang Seng's 30-day price volatility fell to 25.83%, slightly lower than the previous session's 26.32%, although still above the average for the past month of 23.93%. Technically, the index remains 8.2% below its 52-week peak reached on January 29, 2026, but remains 33.7% above its low on April 9, 2025. This indicates that the Hong Kong market remains in a medium-term recovery trend, although short-term movements are beginning to show a consolidation phase. (asd)
Sumber: Newsmaker.id
