HK, Shanghai rally, casino stocks fall on Macau move - RTHK

Tuesday 4th February 2020

Shanghai stocks rallied more than 1 percent on Tuesday, recovering some of the previous day's rout, boosted by bargain-buying and a huge injection of cash into the financial system by the mainland's central bank.

The benchmark Shanghai Composite Index jumped 1.3 percent, to 2,783, while the Shenzhen Composite Index climbed 1.8 percent, to 1,638.

In Hong Kong, the Hang Seng Index rose 1.2 percent, to close at 26,675.

Shen Zhengyang, an analyst with Northeast Securities, said investors took heart from Beijing's policy moves and the expectations of more to come.

The government pumped 1.2 trillion yuan into the economy on Monday to help stabilise markets, followed by almost 420 billion yuan more on Tuesday.

"But no turnaround will last long unless the [coronavirus] epidemic situation starts to dramatically improve," Shen said.

"The outbreak will definitely have a big impact on economic growth and the earnings of listed companies. Trading in the next few days is likely to be choppy."

In Hong Kong, investors built on Monday's modest gains as they track developments in the outbreak, with little major reaction to news of the first virus-linked death in the city.

Casino operators were deep in the red, however, after authorities in Macau said they would close all gaming houses in the gambling hub for two weeks.

Sands China fell 2 percent, Galaxy Entertainment was down 2.3 percent and Wynn Macau sank 1.7 percent.

The only other time Macau closed its casinos was in 2018, when the city was hit directly by a typhoon. (AFP)