The Hang Seng Index weakened 1.2% to close at 26,559.95 in Hong Kong trading on Friday (February 6). This decline brought the Hang Seng Index to its lowest closing level since January 20, after a slight 0.1% gain the previous day a sign that the market was losing steam and entering a correction phase.

Selling pressure was evident from the start of the session, with investors tending to reduce exposure to riskier assets. While no single factor was dominant, today's movement patterns suggest the market is resetting after the rally, particularly in large stocks that have been the index's mainstays.

AIA Group Ltd. was the largest contributor to the index's decline and recorded the sharpest movement, falling 5.5%. AIA's decline had a significant impact due to its significant weighting in the index, so a decline in just this one stock was enough to drag the Hang Seng down.

Broadly speaking, the market was clearly skewed negative: 52 of the 88 stocks in the index ended down, while 33 managed to gain ground. This composition typically indicates more widespread selling pressure, rather than just a correction in one or two stocks.

All sectors recorded declines, with the declines led by financial stocks. When financial sectors weaken simultaneously, the market is usually reassessing growth prospects, interest rate risks, or valuations and this often makes index movements more difficult because this sector has a significant influence on the direction of the Hang Seng. (arl) [sma]

Source : Newsmaker.id