Hang Seng reclaims 24,000 as technology sector rallies

Technology stocks rallied in Hong Kong on Thursday, with Tencent Holdings surging to an all-time high, while the mainland market found some breathing space after a four-day losing streak.

The Hang Seng Index reclaimed the psychologically important 24,000 threshold to end at 24,056.98, up 1 per cent or 231.1 points. The Hang Seng China Enterprises Index climbed 0.7 per cent to 10,056.2. Total turnover shrank 6 per cent to HK$67.7 billion.

The tech sector was the major driving force. Tencent was the most traded blue chip, jumping 2.8 per cent to end at an all-time high of HK$236.6.

AAC Technologies Holdings, the major provider of components for iPhone, rose 2 per cent to HK$102.3, its best ever closing level. Sunny Optical Technology gained 4.7 per cent to HK$59.5, also its highest closing level in history.

“Hong Kong stocks found a chance for technical rebound as the mainland market stabilised today. But the turnover was not high, so a big rally is unlikely to come. We may see more ups and downs around the 24,000 level before May,” said Francis Kwok Sze-chi, managing director at Freeman Securities.

Several investment banks have raised their price targets for Tencent. Nomura, Morgan Stanley and Bank of America Merrill Lynch all said Tencent should post better-than-expected earnings growth from its gaming and advertising segments.

Among other big movers, Geely Automobile outperformed its blue-chip peers to close 3.2 per cent higher at HK$11.6.