Tencent Has Worst Week Since 2015 After $274 Billion Rally
(Bloomberg) -- Tencent Holdings Ltd. posted its biggest weekly loss since August 2015 amid concern a recent rally was excessive.
The technology company retreated 3.3 percent Friday, taking its decline this week to 7.4 percent. Tencent’s shares have more than doubled this year, adding $274 billion in value through last week, while the company’s market value topped that of Facebook Inc. for a period last month. As part of a quarterly rebalancing on Friday, the stock’s weighting on Hong Kong’s benchmark Hang Seng Index will fall to 10 percent from 11.7 percent.
MSCI Inc.’s global gauge of technology shares has slumped 1.8 percent this week as traders rotated out of 2017’s best performers.
Cathay Pacific Airways Ltd. and Kunlun Energy Co. will be dropped from Hong Kong’s benchmark when the rebalancing takes effect. Cathay, a member of the gauge for decades, slid 1.5 percent Friday, while Kunlun Energy Co. advanced 0.7 percent.
Chinese property developer Country Garden Holdings Co. and Apple Inc. supplier Sunny Optical Technology Group Co. will take their places. Country Garden added 4.7 percent, while Sunny Optical’s shares gained 1.5 percent.
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