Hong Kong Stocks Fall for Fourth Consecutive Day

Fears of a second wave of Covid-19 cases in the U.S. and China move markets down; Techtronic Industries, Galaxy Entertainment, and Sands China among biggest losers.

Author: Anthony Russo   

Hong Kong stocks fell for the fourth consecutive day on fears of a second wave of infections in both the United States and China.

At Monday's close, the Hang Send Index dropped 2% to 23,776.95 points. The biggest loser on the exchange was the power tool maker Techtronic Industries Company Ltd., (HKEX: 00669) which tanked nearly 5% to HK$70.35 per share. Some other top losers featured the casino operators Galaxy Entertainment Group Ltd., which slipped nearly 5% to HK$51.85 per share (HKEX: 00027) and Sands China Ltd., (HKEX: 01928) falling 4% to HK$31.15 per share at the close.

The big sell-off comes as Beijing reported 44 new local Covid-19 cases, marking the highest increase in two months. That was followed by 39 new cases reported on Sunday. Beijing took action by putting up security checkpoints, closing schools, and demanding people get tested on Monday.
Meanwhile, the U.S. reported 25,000 new cases on Saturday, marking the country's highest figure since May 2.

The Dow Jones futures also tanked nearly 3%, impacting markets in China, as noted by Zhang Gang, an analyst at Central China Securities.

"Investors are concerned about the drop in Dow Jones because of the chaos in the US, and a second wave of the pandemic is dampening the expectation for economic recovery," Gang said.

He added, "[The Shanghai Composite] will fluctuate in the range of around 50 points above or below 2900 as investors wait for more economic stimulus by Beijing to boost employment."

Now calling on Moderna, Inc. (Nasdaq: MRNA) for a breakthrough on its Covid-19 vaccine. Anyone home?