Hong Kong's three major stock indices closed with mixed results on Friday.
The Hang Seng Index finished up 0.16% at 24,213.72, while the Hang Seng Tech Index declined 0.96%. The Hang Seng China Enterprises Index rose 0.33%.
Technology stocks were mixed. JD.com shares gained over 2%, and Kuaishou rose more than 1%. In contrast, Lenovo Group fell over 4%, and Bilibili dropped more than 2%.
Oil stocks were active, with PetroChina climbing over 2%.
PCB (Printed Circuit Board) concept stocks declined, with Kingboard Laminates Holdings plunging more than 18%.
The semiconductor sector weakened, with GigaDevice Semiconductor tumbling over 15%.
Oil Sector Activity
Oil-related stocks saw increased activity, led by PetroChina's gain of more than 2%. The moves come amid heightened geopolitical tensions. The U.S. military has stated it will launch a new large-scale strike against Iran, with reports indicating the U.S. has targeted 100 missiles at Iranian objectives. Iran, in response, announced the "immediate and indefinite closure" of the Strait of Hormuz, a claim promptly denied by the U.S. Central Command, creating conflicting narratives about the strait's status. Iran has also expanded missile and drone attack warnings to Gulf nations like Qatar and the UAE. The Strait of Hormuz is a critical chokepoint for approximately 20% of global crude oil shipments, and any disruption to transit would directly impact worldwide energy supply. The current conflicting statements from the U.S. and Iran suggest geopolitical risk premiums are unlikely to dissipate soon, providing ongoing support for international oil prices.
PCB Sector Weakness
PCB concept stocks faced selling pressure, with Kingboard Laminates Holdings down over 18%. The decline followed recent market rumors suggesting a potential delay for NVIDIA's Rubin Ultra chip until 2028. On July 11, Morgan Stanley released notes from a non-deal roadshow with NVIDIA management. NVIDIA CEO Jensen Huang, along with CFO Colette Kress and other executives, met with institutional investors. During the discussions, Huang stated the company's quarterly revenue is approaching $100 billion with accelerating growth. He denied the rumors of a Rubin Ultra delay, confirming the chip is on schedule for release next year.
Semiconductor Sector Downturn
The semiconductor sector was weaker, with GigaDevice Semiconductor dropping over 15%. South Korean brokerage KIS forecast SK Hynix's Q2 operating profit at 60.4 trillion won, a massive 556% year-on-year increase but approximately 8% below the market consensus of 65 trillion won. Memory chip stocks also saw a collective decline. Regarding the share price movement, a representative from GigaDevice Semiconductor stated that the current adjustment has strong correlation with movements in overseas markets. "The extent of our stock price decline is similar to SK Hynix's, both down by more than 30% so far. We are all in the memory business, and the previous upward trends were also quite similar," the representative said. Addressing market concerns about the company's business, the representative added that the company's earnings pre-announcement "is the most convincing proof regarding our performance."
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