Asian markets suffered last hour selloffs on Wednesday, dragged down by Hong Kong property shares.

The Hang Seng Index erased earlier gains and closed 0.36% lower after a key policy speech by Hong Kong’s new chief executive-elect Carrie Lam. She addressed public’s housing needs without a mentioning any plans – in particular, a widely anticipated agricultural land scheme to boost land supply, thus disappointing many investors.  Property developers tumbled immediately after her speech, with Henderson Land (-4.9%), Sun Hung Kai Properties (-1.7%), Sunac China (-7.3%) and Evergrande (-5.9%) were among the biggest losers.

Technically, Hang Seng index has broken out above the key resistance level of 28,170 area and is challenging the next resistance of 28,525 (138% Fibonacci Extension) area. Breaking out above this level will open room for more upsides towards the next major resistance at 29,100. To give the market another boost after an almost 30% year-to-date gain, it needs upbeat 3Q earnings and accommodative liquidity environment.   

Hong Kong 50 - Cash

Earnings update
Singapore Press Holdings:

  • Full year net profit rises 32% YoY
  • 3Q earnings fell 45% YoY mainly due to impairment charges from its magazine business
  • Group operating revenue down 8.2%, mainly attributed to shrinking revenue from media advertisement
  • The group has cut 10% headcount since Oct 2016 for cost reduction
  • Property business remains resilient and provides consistent income stream
  • Final dividend 9 cents per share declared, full year dividend 15 cents – which reflects 145% payout ratio  

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