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Hong Kong Stocks Fall Second Day as Materials Producers Retreat

Written By Kontak Perkasa Futures on Tuesday, September 24, 2013 | 9:22 AM


Bloomberg, (24/9) -- Hong Kong stocks fell a second day, with the equity benchmark heading for a one-week low, as materials producers extended declines on commodity prices.

The Hang Seng Index lost 0.3 percent to 23,309.74 as of 9:30 a.m. in Hong Kong, with about two shares falling for each that gained on the 50-member gauge. The Hang Seng China Enterprises Index, also known as the H-share index, declined 0.2 percent to 10,690.29.

The Hang Seng Index gauge climbed 7.6 percent this year through yesterday amid signs of mainland economic recovery and after the Federal Reserve unexpectedly refrained from cutting stimulus. The equity benchmark traded at 11.2 times estimated earnings yesterday, compared with 15.4 for the Standard & Poor’s 500. The H-share index entered a bull market this month after rebounding more than 20 percent from a June low.

Futures on the S&P 500 fell 0.1 percent. The gauge fell 0.5 percent yesterday as financial shares slumped and investors watched speeches from central bank officials for clues on monetary policy. New York Fed President William C. Dudley and the Atlanta Fed’s Dennis Lockhart said yesterday stimulus is still needed, while Dallas Fed President Richard Fisher said not tapering $85 billion a month in bond purchases harmed the central bank’s credibility.

The Fed is expected to wait until December before taking the first steps in slowing stimulus, after Chairman Ben S. Bernanke maintained the pace of asset purchases last week, according to 24 of 41 economists surveyed Sept. 18-19 by Bloomberg News.
Written by: Kontak Perkasa Futures
PT.Kontak Perkasa Futures, Updated at: 9:22 AM
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