Hang Seng Drops 1.3%, Investors Beware!
The Hang Seng Index weakened on Thursday (May 28), dropping 333 points (1.3%) to 24,990. The decline was triggered by pressure in the financial, technology services, and retail sectors, as investors exercised caution amid inconsistent signals regarding the chances of a US-Iran deal to end the conflict.
Regional sentiment was also weighed down by developments in the negotiations, while rising oil prices added to pressure on risk appetite. The channel is simple: more expensive energy increases inflation risks and limits room for policy easing, so stocks tend to lose support when oil volatility increases.
Large-cap stocks were the main drags. Tencent fell 1.2%, Xiaomi fell 1.3%, Meituan fell 3.2%, and AIA Group fell 3.7%. This movement confirms that the greatest pressure is on large-cap companies that are sensitive to changes in risk sentiment.
However, the index's decline was somewhat offset by the strengthening of electronics technology. SMIC rose nearly 4.2% and Pop Mart surged 6.5%, helping to mitigate the depth of the correction. The market now awaits the release of Hong Kong trade data later today for further clues on the direction of external demand and activity.(asd)
Sumber: Newsmaker.id
