=MARKET BUZZ: Tech Rebound Helps Hong Kong’s HSI Close Higher
HONG KONG (Dec 07) -- Hang Seng closes up 0.3% at 28,303.19 as Tencent leads recovery in technology shares. WeChat app maker, down over 12% over previous six sessions, advances 3.6%, adding over 80 points to HSI. Sunny Optical Technology and AAC Technologies rise by at least 2.5% each; both shares had fallen by 20% or more since last Tuesday prior to today’s rally. Overnight recovery in US technology names prompts today’s advance in techs. While HSI ends two-day 3% slump, today’s rally not very convincing, say traders. “The volumes are way lower than when markets dropped sharply yesterday, which lends less credibility to today’s uptick,” Geo Securities CEO Francis Lun says. “I expect the downtrend to resume and see HSI slipping below 28,000 in the coming days.” Volumes on main board stood at HK$121 billion ($15.5 billion) compared to HK$162 billion yesterday. HSI breadth in favor of declines as only 20 out of currently 51 shares close higher. Shanghai Composite drops 0.7% to over three month lows. “Liquidity concerns are continuing to keep China markets depressed. One more reason why I think HK markets will struggle.”
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