HSI Gives Up Early Gains To Close In The Red

Local shares failed to hold on to its strong start on Friday and finished the day in negative territory along with their peers in the region, as traders were gripped by a showdown between hedge funds and retail investors in the US as well as on-going concerns about the coronavirus pandemic.

The Hang Seng Index began the last trading day of the month higher and put on more than 400 points before reversing course. It finished down 267 points, or nearly 1 percent, at 28,283.

Market turnover reached HK$240.2 billion.

The Hong Kong benchmark lost almost 4 percent for the week, but was up 3.9 percent for the month.

The day’s biggest blue-chip losers were Wharf Real Estate Investment Company and Country Garden, each giving up more than 4 percent.

HSBC slipped more than 1 percent despite Chief Executive Carrie Lam voicing support for a strong presence by the British bank in Hong Kong during a media interview.

The index was also dragged by Alibaba, which retreated 1.9 percent.

Across the border, the Shanghai Composite index declined 0.6 percent amid ongoing liquidity squeeze concerns, while the blue-chip CSI300 index trimmed half a percent. The Shenzhen Composite index eased 0.75 percent.

Around the region, the Nikkei in Japan erased early gains from upbeat tech earnings to end 1.9 percent lower on profit-taking.

The Kospi in Seoul tumbled 3 percent on valuation concerns over local stocks.

Taiwan plunged 1.8 percent to its lowest close in more than three weeks, as heavyweight TSMC struggled with an auto chip crunch.

Australia and Singapore each shed more than 0.6 percent.