Hong Kong Market extends losses on lockdown, Ukraine risks

15 Feb 2022 , 04:52 PM

Hong Kong share market finished lower for second straight session on Tuesday, 15 February 2022, as risk aversion selloff continued on tracking negative lead from Wall Street overnight as well as concerns over the economic impact of a city-wide lockdown.

Sentiment also continued to be weighed down by worries about accelerated U.S. monetary tightening and the threat of Russias possible invasion of Ukraine.

At closing bell, the benchmark Hang Seng Index declined 0.82%, or 200.86 points, to 24,355.71. The Hang Seng China Enterprises Index fell 1.05%, or 90.21 points, to 8,528.27.

Sentiment in the local equities market remained gloomy amid fears of a protracted economic recovery due to a worsening outbreak of the omicron variant of COVID-19. Hong Kong is struggling to contain its fifth wave of coronavirus infections as cases hit record highs in recent days, prompting calls for tougher measures to control the outbreak, such as a city-wide lockdown.

Compounding the downbeat mood were geopolitical tensions. Investors in the region continued to monitor tensions between Russia and Ukraine amid fears of a Russian attack on Ukraine, with the U.S. closing its embassy in Kyiv.

Leading the upside were WuXi Biologics, up 10%, followed by Xinyi Solar, up 4.4%, and China Resources Beer, up 3.7%. On the downside were Bank of China HK, off 4.1% and China Petroleum & Chemical, off 3.6%.

Shares of oil producers and insurers were the worst performers. PetroChina and Sinopec dropped more than 3 per cent, surrendering some of their rallies on Monday on the back of crude oil rally. China Life Insurance and Ping An Insurance each sank 3.5 per cent.

MMG shares fell 4% after the miner said operations at its Las Bambas copper mine are set to return to normal levels in the coming days following a truce with Peruvian communities.

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