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Global stocks boom: Hong Kong hits record closing high

Hong Kong is joining the global stock market party.The city's main market index surged to its...

Posted: Jan 16, 2018 11:55 AM
Updated: Jan 16, 2018 11:55 AM

Hong Kong is joining the global stock market party.

The city's main market index surged to its highest ever close on Tuesday. The Hang Seng gained 1.8% to end at 31,904 points, topping its previous closing peak from way back in 2007.

That leaves it just 50 points or so shy of the record high set during a trading day in November 2007.

Hong Kong shares have been on a tear, returning more than 45% in the past 12 months. That's almost double the gains recorded by the S&P 500 in the U.S. over the same period.

Related: U.S. stocks had a banner year in 2017. These markets did even better

The Hong Kong rally has been propelled in part by tech companies like Tencent, which is often referred to as the Chinese equivalent Facebook.

Tencent, which has surged 125% in the past year, is the second-biggest component in the Hang Seng.

"Every time Tencent hits a historical high, it brings up the entire index," said Dickie Wong, research director at Hong Kong broker Kingston Financial. "The nickname for the Hang Seng is now the Tencent index."

Share prices have also been buoyed by renewed optimism over the Chinese economy, and a torrent of money from mainland China flowing into big stocks like bank HSBC, Wong said.

Hong Kong brokers think the Hang Seng's winning streak still has a ways to go.

Douglas Morton, an analyst at money manager Northern Trust Capital Markets, said he expects the momentum to continue through 2018.

Related: Everything's near a record high. Is the market too hot?

He points out that investment flows from mainland China into Hong Kong's market are "surging," while a "robust" Chinese economy is helping to boost corporate earnings.

Kingston's Wong is also positive. He predicts the Hang Seng will hit 35,000 points by the end of this year, about 10% above current levels.

He said Hong Kong shares are much cheaper than they were back in 2007, based on a key earnings metric that many investors use to value stocks.

The possibility of new big tech listings in the city this year, such as smartphone maker Xiaomi, could help sustain enthusiasm, too.

Mississippi Coronavirus Cases

Data is updated nightly.

Cases: 319948

Reported Deaths: 7371
CountyCasesDeaths
DeSoto22285267
Hinds20719421
Harrison18431317
Rankin13901282
Jackson13718248
Madison10263224
Lee10059176
Jones8467167
Forrest7832153
Lauderdale7261242
Lowndes6517150
Lamar635188
Lafayette6313121
Washington5425137
Bolivar4841133
Panola4670110
Oktibbeha466198
Pearl River4605147
Marshall4574105
Warren4440121
Pontotoc425873
Monroe4157135
Union415777
Neshoba4063179
Lincoln4008112
Hancock386987
Leflore3515125
Tate342486
Sunflower339491
Pike3371111
Alcorn327272
Scott320374
Yazoo314171
Adams308086
Itawamba305178
Copiah299966
Coahoma298784
Simpson298589
Tippah291968
Prentiss284161
Leake272074
Marion271280
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Holmes190474
Stone188433
Clay187954
Tallahatchie180041
Clarke178980
Calhoun174132
Yalobusha167840
Smith164134
Walthall135347
Greene131834
Lawrence131124
Montgomery128643
Noxubee128034
Perry127238
Amite126242
Carroll122330
Webster115032
Jefferson Davis108234
Tunica108127
Claiborne103130
Benton102325
Humphreys97533
Kemper96629
Franklin85023
Quitman82216
Choctaw79118
Wilkinson69632
Jefferson66228
Sharkey50917
Issaquena1696
Unassigned00

Alabama Coronavirus Cases

Cases: 548657

Reported Deaths: 11306
CountyCasesDeaths
Jefferson810031566
Mobile42105831
Madison35690525
Tuscaloosa26173458
Shelby25607254
Montgomery25081614
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Lee16278176
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Morgan14629285
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Blount6945139
Jackson6932113
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Coffee5635127
Dale4928116
Russell454841
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Franklin431382
Covington4275122
Tallapoosa4138155
Escambia401680
Chambers3728124
Dallas3607158
Clarke353061
Marion3240107
Pike314378
Lawrence3133100
Winston283472
Bibb268564
Geneva257981
Marengo250565
Pickens236962
Barbour234559
Hale227278
Butler224271
Fayette218862
Henry194543
Randolph187544
Cherokee187345
Monroe180041
Washington170539
Macon163051
Clay160059
Crenshaw155957
Cleburne153444
Lamar146837
Lowndes142254
Wilcox126930
Bullock124342
Conecuh113630
Coosa111729
Perry108626
Sumter105732
Greene93634
Choctaw62125
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We will see the rainfall move out of our area overnight as a cold front moves through our area. We will see high pressure move into our area for a few days as we to through our Tuesday and Wednesday. However, more rainfalll in the forecast later in the week.
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