Hong Kong stocks closed higher Tuesday led by banks and
properties shares, which were apt to be influenced by hopes of a
rate cut expected after a meeting of the U.S. Federal Reserve later
Tuesday.
The benchmark Hang Seng Index opened at 28,947.70, up 446.20
points or 1.57 percent, and closed at 29,226.84, up 725.74 points
or 2.55 percent, reversing the ground it had lost on the previous
day.
The market traded stable between 28,726.13 and 29,235.21 on a
turnover of 89.96 billion HK dollars (11.55 billion U.S. dollars),
rather modest if compared with that of Monday.
Analysts attributed the benchmark gain to expectations for the
U.S. Federal Reserve decision in favor of a rate cut and the
rebound of heavyweight stocks.
Any moves by the central bank of the world's largest economy, if
not unexpected, would, along with favorable announcements ahead of
the year end, help the Hong Kong market maintain its strength,
possibly to try the 30,000 mark, they said.
But the modest turnover showed investors were still wavering
over the potential uncertainties ahead, like the Chinese mainland's
tightening measures.
Morgan Stanley said it expected China's consumption-related
shares to rise for the one-year outlook and advised investors in
favor of such stocks rather than companies relying on exports or
involved in the energy and material sectors.
China Mobile, the mainland's largest mobile carrier and the
largest stock on the Hong Kong stock exchange by market
capitalization, went up 4.9 HK dollars, or 3.49 percent, to close
at 145.5 HK dollars, contributing 130.44 points alone to the
benchmark rise.
HSBC, another heavyweight on Hong Kong market, gained 2.9 HK
dollars, or 2.17 percent, to close at 136.7 HK dollars, lifting the
benchmark by 91.78 points.
All major categories gained ground, with the finance sector
rising 681.54 points, or 1.64 percent, to close at 42,148.87, the
utilities up 1,004.11 points, or 2.53 percent, at 40,687.86 and the
commerce and industry sub-genre up 484.27, or 2.86 percent, at
17,399.84.
The properties sub-index soared 1,781.12 points, or 4.82
percent, to close at 38,756.44.
Cheung Kong, the Hong Kong-based properties conglomerate headed
by billionaire Li Ka Shing, went up 6.5 HK dollars to close at
146.6 HK dollars.
SHK Properties, another major player in the property industry,
also shot up 10.5 HK dollars, or 6.77 percent, to close at 165.5 HK
dollars.
The China Enterprises Index was up 231.05 points, or 1.17
percent, at 19,971.78.
The Bank of China went up 0.04 HK dollars to 4.11 HK dollars
while the BOC Hong Kong gained 0.6 HK dollars to close at 22.4 HK
dollars.
China Life rose 0.7 HK dollars to close at 43.95 HK dollars.
PetroChina went up 0.34 HK dollars to 15.66 HK dollars while
competitor Sinopec gained 0.52 HK dollars at 12.52 HK dollars,
partly thanks to news that it was investing in a multi-billion
project in Iran.
(Xinhua News Agency December 12, 2007)
