Hang Seng Index hit by sell-off, Straits Times Index bucks trend
The Hang Seng Index ended the week 1.2% lower amid a global equity sell-off, while the Straits Times Index managed to gain nearly 2%.
- Hong Kong’s Hang Seng Index declined 1.22% this week
- The sell-off was due to a global sell-off in equities which first began in the US in anticipation of potentially higher US bond rates
- Meanwhile, Singapore’s Straits Times Index bucked the negative trend, closing 1.8% higher
- Trade the Hang Seng Index or Straits Times Index, long or short, with an IG account
Hang Seng Index: ↓0.47%
The Hang Seng Index (HSI) closed 0.47% lower, or 138.50 points, on Friday (05 March 2021), as it remained weighed down by a global tech sell-off and fears around potential interest rate hikes.
The blue-chip benchmark slipped for a second straight session to finish at 29,098.29, down 1.22% for the week.
The tech stock correction, which began in the US on Wednesday (03 March) as a response to potentially higher US bond yields, saw companies like Kuaishou Technology and Xiaomi lose nearly 5% and 4% of their share prices on Friday alone.
The massacre also led to Chinese technology giants Alibaba Group and Tencent’s share prices sinking as much as 4.7% and 7.4% respectively this week.
Meanwhile, PetroChina ended the week 3.17% higher, after OPEC said it plans to keep production steady through April 2021.
On Friday, China’s National People’s Congress also kicked off its ‘Two Sessions’ meeting in Beijing. Some key takeaways include an economic growth target for 2021 at ‘above 6%’, which is below most economists’ estimates of over 8%.
Straits Times Index: ↓0.13%
The STI Index suffered smaller losses of 0.13% on the day, closing at 3,011.00. Only ten of the index’s 30 constituents experienced gains.
The day’s top gainers included: DairyFarm (+1.4%), Jardine Cycle & Carriage (+1.34%) and Jardine Strategic Holdings (+1.29%).
Top losers were: SATS (-1.6%), ST Engineering (-1.54%), DBS (-1.25%) and Keppel DC Reit (-1.11%).
Across the whole week, Singapore’s large cap barometer was able to buck the bond yield-driven correction trend, rallying roughly 1.8%.
The STI opened the week at a low of 2,960.838, before rising steadily to peak at 3,026.20 on Friday afternoon.
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