Hong Kong stocks rise as positive holiday bias sets in ahead of Lunar New Year
Southbound net inflows reflect investor optimism about Hong Kong stocks after the holiday, analyst says
The Hang Seng Index rose 0.3 per cent to 27,266.38 at the close of trading, adding to the 0.6 per cent gain recorded on Tuesday. The Hang Seng Tech Index climbed 0.9 per cent. On the mainland, the CSI 300 Index fell 0.2 per cent and the Shanghai Composite Index added 0.1 per cent.
Hong Kong stocks will trade for only half a day on Monday before closing for the holiday, reinforcing near-term calendar effects on market moves. The benchmark typically sees lighter volumes and a positive bias ahead of the holiday, as traders square positions and selectively add exposure before the break.
“Today’s market was mainly driven by a strong holiday mood, with turnover reaching HK$217 billion [US$28 billion], said Kenny Tang, chairman of the Hong Kong Institute of Financial Analysts and Professional Commentators. “Southbound net inflows also exceeded HK$4.8 billion, reflecting investors’ optimism about Hong Kong stocks after the Lunar New Year holiday.”