Hong Kong stocks: Hang Seng Tech Index narrows decline in early trading, aluminum stocks lead the market rally

Caixin News, March 30 (Liou Jia Rong). Hong Kong stocks’ three major indices collectively adjusted lower in early trading. By midday, the Hang Seng Index was down 0.93%, at 24,719.20 points; the Tech Index fell 1.70%, to 4,696.96 points; and the Hang Seng China Enterprises Index dropped 0.74%, to 8,391.09 points.

Note: Performance of the Hang Seng Index

Note: Performance of the Hang Seng Tech Index

Worth noting is that the Hang Seng Tech Index briefly touched an intraday low of 4,625.11 in early trading. Market sentiment fell to a freezing point. But then the bulls quickly launched a counterattack, and the index’s decline narrowed; before the lunch break, it managed to recover some of its losses. The Hang Seng Index and the Enterprises Index also showed a similar “dip-buying and rebound” pattern.

Aluminum and oil-and-gas stocks led higher against the trend, while internet-related stocks and others declined

By midday, China Aluminum (02600.HK) was up 7.86%, Nanfang Aluminum International (02610.HK) rose 5.64%, and Rusal (00486.HK) gained 3.17%.

On the news front, on March 28, Alba and EGA confirmed that their core aluminum smelting facilities in the region were attacked by Iranian missiles and drones, causing minor injuries to personnel and damage to equipment. Driven by this, the LME aluminum price surged by more than 5% at one point during the day. A statement from Iran’s Islamic Revolutionary Guard Corps said the action targeted industrial sites “associated with the U.S. military and aerospace industry,” and warned that it would carry out “deadlier strikes,” with geopolitical risk premium significantly boosting sentiment for the aluminum sector.

Meanwhile, international crude oil prices strengthened as the situation in the Middle East escalated. After WTI crude oil futures jumped nearly 8% last Friday, they rose again and are still up slightly, remaining above $100. By midday, Pacific Basin Oil Services (01938.HK) rose 3.08%, and Shandong Molong (00568.HK) climbed 1.26%.

Internet-related stocks continued their recent weakness. By midday, Baidu Group-SW (09888.HK) fell 3.41%, Bilibili-W (09626.HK) declined 3.34%, and Kuaishou-W (01024.HK) dropped 2.04%.

On the news front, adjustment sentiment in the overseas technology sector was transmitted to Hong Kong stocks through market linkage effects, increasing selling pressure on related sectors. Last Friday, the three major U.S. stock indexes all closed lower: the Nasdaq fell 2.15%, the S&P 500 dropped 1.67%, and the Dow Jones Industrial Average fell 1.73%. The S&P 500 posted its longest streak of five consecutive weekly declines since 2022.

Also affected by the same news, semiconductor stocks moved lower. By midday, GloTrends Tech (06809.HK) fell 4.51%, Innosilicon (02577.HK) declined 3.97%, and Tianshu Zhixin (09903.HK) dropped 2.96%.

New stock performance stands out

Despite pressure on the Hong Kong stock market, some new listings’ performance is worth a look—for example, Jushijue (06636.HK) and DESHENG-B (02526.HK) both rose more than 100% in today’s early trading.

Jushijue is a Chinese provider of AI computer vision solutions. According to previously disclosed information, in the public offering phase, it was subscribed 4,591.37 times, and the final number of shares offered in the public offering was 2.496 million shares, accounting for about 20% of the total offering shares.

DESHENG is a medical device company focused on developing medical imaging products and services. According to previously disclosed information, in the public offering phase, it was subscribed 1,073.37 times, and the final number of shares offered in the public offering was 0.79995 million shares, accounting for about 10% of the total offering shares.

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