Hang Seng Down 1.4%, Tencent Pressures Index
The Hang Seng Index closed down 1.4% to 26,544.85 in Hong Kong—its biggest daily decline since July 31 (-1.6%)—after a 1.8% surge in the previous session. Selling pressure spread across nearly all constituents, stalling the recent rally.
The biggest pressure came from Tencent, which fell 3.0%, while Xinyi Solar led the decliners, falling 5.9%. Of the 88 stocks, 78 declined and only 8 advanced; all sectors ended in the red, led by the trade and industrials group. 30-day price volatility rose to 17.47% from 17.13% the previous day (monthly average 16.60%).
Despite today's pressure, short- and medium-term performance remained solid. The index remains near its 52-week high and 50.8% above its September 19, 2024, low. Since the start of the year, the Hang Seng has risen 32% (potentially its best year since 2017), with a quarterly gain of +10%, a weekly gain of +0.6%, a five-day gain of +1.8%, and a 30-day gain of +5.4%.
Valuation-wise, the Hang Seng is trading at a P/E of 12.9x trailing earnings and approximately 13x estimated forward earnings for the full year, with a 12-month dividend yield of 3%. The total market capitalization of index members stands at HK$32.5 trillion, indicating some breathing room should global sentiment improve.
Key points:
The HSI fell 1.4% to 26,544.85; its biggest decline since July 31.
Tencent -3.0% was the main drag; Xinyi Solar -5.9% was the worst performer today.
78/88 stocks declined; All sectors fell, 30-day volatility rose to 17.47%.
YTD +32%, QTD +10%, 52-week +50%; valuation ~12.9x (trailing) & yield 3%. (ads)
Source: Bloomberg.com
