Hong Kong stocks end a volatile 2016 roughly flat

(L-R) The Hong Kong Exchanges flag, Chinese national flag and Hong Kong flag are hoisted outside the Hong Kong Stocks Exchange in Hong Kong. Reuters

SHANGHAI: Hong Kong shares rose around 1 percent on Friday, but the main indexes ended 2016 near where they started after a volatile 12 months, punctuated by Britain's vote to leave the European Union and Donald Trump's triumph in the U.S. presidential election.

On the last trading session of the year, the Hang Seng index added 1.0 percent, to 22,000.56 points, while the Hong Kong China Enterprises Index gained 0.9 percent, to 9,394.87.

All sectors in Hong Kong gained ground on Friday, with the raw materials and services sectors among the best performers.

But for 2016, the indexes were roughly flat.

The market suffered a brutal start to the year due to fears that global economy might slip into recession.

With investors seeking healthy dividends, a subsequent recovery gathered momentum until Britain's unexpected vote in June to leave the EU briefly upset markets.

Once the Brexit shock faded, the market reumed its uptrend, only to finally run out of steam after Trump's surprise victory in November, which boosted the U.S. dollar against its Hong Kong counterpart and other Asian currencies.

Shen Weizheng, Shanghai-based fund manager at Ivy Capital, said next year would be very unpredictable for the Hong Kong market, with much depending on whether Chinese investors will step up buying Hong Kong shares via the recently-expanded cross-border investment schemes between the two markets. - Reuters

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 0
Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!

Next In Business News

Hong Kong's Q4 GDP down 4.2% y/y, 4th quarter of contraction
Wellous appoints Lee Koon Tan as group president
Oil rises as slowing U.S. inflation eases recession concerns
Gold flat as traders focus on Fed decision
SK Hynix warns chip downturn to worsen in Q1, posts record quarterly loss
Asian currencies muted, stocks rise ahead of Fed meeting
Asia's factory activity contracts despite China's COVID reopening
Adani Group stocks rout deepens to US$72bil despite share sale completion
Stocks firm, dollar on edge ahead of Fed decision
Malaysia's manufacturing PMI slows again in January 2023

Others Also Read