Markets seesaw amid Middle East uncertainty

研报英文原文证据摘录

Markets seesaw amid Middle East uncertainty

the Middle East and higher crude oil prices weighed on sentiment,

investor confidence was supported by a 1.8ppt MoM increase in the private-

sector issued services PMI for May. Coal mining, power generation, and CPO-

related stocks led gains, and the Shanghai Composite Index inched higher,

rising for a second consecutive day. On the Hong Kong market, however,

investors reacted negatively to rising crude oil prices, leading to higher selling

pressure in high-tech stocks. The Hang Seng Tech Index fell 2.7% DoD and

the Hang Seng Index declined 1.6%, reversing part of the previous day’s gains.

Afterward, risk-off selling continued to spread on the back of escalating military

tensions in the Middle East. On Thursday 4 June on the mainland markets,

declines in non-ferrous metal prices resulted in selling of related stocks, and

the Shanghai Composite Index retreated 0.6% DoD. In Hong Kong, equities

extended losses with the Hang Seng Tech Index down 1.6% and the Hang

Seng Index down 1.5% amid concerns over rising US interest rates.

State-backed fund’s semiconductor stock sales dampen investor

sentiment

The selling of semiconductor stock holdings by the National Integrated Circuit

Industry Investment Fund, one of China’s state-backed funds (hereafter “the

state-backed fund”), appears to be weighing on investor sentiment. Amid

strong momentum for semiconductor stocks listed in the mainland Chinese

and Hong Kong markets, mainland-listed firms NSIG and Darbond Technology

released large shareholding reports on 28 May showing that the state-backed

fund had lowered its stake in both stocks, while information disclosed by the

Hong Kong Stock Exchange revealed that the state-backed fund also reduced

its stake in SMIC.