=MARKET BUZZ: Hong Kong’s HSI Ends Lower; Developers Lead Losses, Casinos Gain
HONG KONG (Sep 13) -- Hang Seng index closes 0.3% lower at 27,894.08, dragged by losses in property stocks. Sino Land drops 1.4%, pacing losses on Hang Seng Properties Index. “The Centaline's Centa-City Leading Index YoY growth peaked at 24% in June 2017 and slowed to 17% in September. We expect it to slow down further, putting pressure on stock performance,” Morgan Stanley says in note. House says there is strong correlation between YoY growth in CCL and HSP index. Says, rising private unit completions and recent capital controls pose additional risk to (Hong Kong) residential property prices, while HK farmland and Chinese land bank will help. China Resources Land slips 0.8%, trimming year-to-date rally to 40%; developer said contracted sales for August nearly doubled from a year earlier. Casino stocks outperform; Sands China and Galaxy Entertainment Group climb at least 1.9% each. “For casino shares, they need a rerating catalyst which can only come after the 4Q earnings are out. I do not see much of an upside before that,” VC Brokerage asset management director Louis Tse says. Shanghai Composite ends up 0.2%.
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