Tencent set for worst week in 21 months after $274bn rally
The technology company retreated 2.2% as of 13:54 local time, taking its decline this week to 6.4%. Tencent’s shares have more than doubled this year, adding $274bn in value through last week. As part of a quarterly rebalancing later on Friday, the stock’s weighting on Hong Kong’s benchmark Hang Seng Index will fall to 10% from 11.7%.
MSCI’s global gauge of technology shares has slumped 2.6% this week as traders rotated out of 2017’s best performers. Cathay Pacific Airways and Kunlun Energy will be dropped from Hong Kong’s benchmark when the rebalancing takes effect. Cathay, a member of the gauge for decades, slid 1.5%, while Kunlun Energy advanced 2.1%.
Chinese property developer Country Garden Holdings and Apple supplier Sunny Optical Technology Group will take their places. Country Garden added 4.6% on Friday, while Sunny Optical’s shares gained 0.4%.