Hang Seng Index Trend | Half-day decline of 276 points, nearly holding above 25,000; Tech Index down 2.2%

Market optimism suggests the Middle East conflict is nearing its end, but after the excitement fades, reality sets back in, with stocks in the Asia-Pacific region and China’s A-shares both pulling back this morning. After Hong Kong stocks rose more than 500 points yesterday, they opened lower and traded lower this morning. In the run-up to the eve of the Easter long holiday, they dropped nearly 300 points to finish the first half, narrowly holding above the 25,000 level. However, the 250-day moving average—commonly referred to as the bull-bear line (currently at 25141)—was breached again.

The Hang Seng Index opened 39 points lower, at 25,254 points, which was already the intraday high level. After that, the bears gradually pushed toward the 25,000 level. In the late morning session, the index fell as much as 290 points, hitting a low of 25,003 points, and then closed in close proximity to the half-day low. The Hang Seng Index closed at 25,017 points at noon, down 276 points, or 1.09%. The China Enterprises Index fell 83 points, or 0.98%, to 8,421 points; the Hang Seng Tech Index dropped 104 points, or 2.21%, to 4,651 points.

Trading turnover for the first half of the market was HK$116.197 billion. Northbound capital net inflow was HK$6.04 billion.

Tech stocks took a beating, dragging the broader market. Alibaba (09988) fell 3.5% to HK$118.4; Tencent (00700) dropped 1.7% to HK$488.4; Baidu (09888) fell 1% to HK$108.5. Meituan (03690) declined 3.1% to HK$79.4; Xiaomi (01810) fell 4.1% to HK$30.7; Kuaishou (01024) dropped 2.8% to HK$44.9.

HSBC (00005) fell 1.5% to HK$128.4; China Mobile (00941) edged down 0.1% to HK$79.75; Country Garden (00960) dropped 3.7% to HK$7.62. Geely Automobile (00175) rose 6.5% to HK$23.4; Sunny Optical (02382) gained 5.6% to HK$60.15, which were the best-performing “blue-chip” counters in the morning session.

Focus Sectors

Chip stocks: Offshore chip stocks saw a sell-off, with Semiconductor Manufacturing International Corporation (00981) down 4.7% to HK$50.35, the worst-performing blue-chip of the morning session; Hua Hong Semiconductor (01347) fell 5.1% to HK$79.4.

Oil stocks: Oil prices rebounded. New York crude oil rose by half a percent during the Asian session this morning, reclaiming the US$105 level. CNOOC (00883) rose 0.8% to HK$27.18; PetroChina (00857) rose 1% to HK$10.66.

Focus Stocks

Majestic Health Holdings (00022): The major shareholder offloaded its holdings. The share price rose first and then fell. After half a day, it was down 12.7% to HK$0.24.

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