HK closes at 3-week high led by financials
Source: Bloomberg News |
October 12, 2011, Wednesday
|
Print Edition
Print Edition
HONG Kong's Hang Seng Index rose to its highest close in almost three weeks, led by financial companies after China's investment arm said it is buying shares in the nation's four biggest banks.
The Industrial and Commercial Bank of China, the world's biggest lender by market value, surged 6.7 percent. Jiangxi Copper, China's top producer of the metal, gained 3.1 percent after commodity prices rose. Esprit Holdings, a clothier that counts Europe as its biggest market, jumped 12 percent amid growing confidence that eurozone leaders will act to stem the region's debt crisis.
The Hang Seng Index increased 2.4 percent to 18,141.59, its highest close since September 21. All but seven stocks increased on the 46-member gauge. The Hang Seng China Enterprises Index of Chinese mainland companies listed in Hong Kong advanced 4.4 percent to 9,257.34.
Philip Poole, global head of macro and investments strategy at HSBC Global Asset Management, said: "What you are seeing is a state entity committing to raising its share of ownership, and that is a very positive signal, not just for the banking sector but more broadly for the global economy. What is most important for markets is to stabilize sentiment."
The Hang Seng Index has sunk 21 percent this year, making it the worst performing developed-market benchmark outside the eurozone. Shares plunged amid concern the mainland's tightening economic measures and Europe's debt crisis will derail global growth.
Companies on the index traded at 9.7 times forecast earnings, around March 2009 levels. That compares with 12 times for the Standard & Poor's 500 Index.
ICBC jumped 6.7 percent to HK$4.31 (US$0.55). The Agricultural Bank of China, the nation's third-biggest lender by market value, surged 13 percent to HK$2.99. China Construction Bank, the second-biggest, rose 5.8 percent to HK$5.11, and Bank of China soared 7.7 percent to HK$2.65.
China's state-run Central Huijin Investment started buying shares in the nation's four biggest banks yesterday.
Commodity prices advanced after German Chancellor Angela Merkel and French President Nicholas Sarkozy pledged to deliver a plan to recapitalize Europe's banks and address Greece's sovereign debt crisis by November 3.
The Industrial and Commercial Bank of China, the world's biggest lender by market value, surged 6.7 percent. Jiangxi Copper, China's top producer of the metal, gained 3.1 percent after commodity prices rose. Esprit Holdings, a clothier that counts Europe as its biggest market, jumped 12 percent amid growing confidence that eurozone leaders will act to stem the region's debt crisis.
The Hang Seng Index increased 2.4 percent to 18,141.59, its highest close since September 21. All but seven stocks increased on the 46-member gauge. The Hang Seng China Enterprises Index of Chinese mainland companies listed in Hong Kong advanced 4.4 percent to 9,257.34.
Philip Poole, global head of macro and investments strategy at HSBC Global Asset Management, said: "What you are seeing is a state entity committing to raising its share of ownership, and that is a very positive signal, not just for the banking sector but more broadly for the global economy. What is most important for markets is to stabilize sentiment."
The Hang Seng Index has sunk 21 percent this year, making it the worst performing developed-market benchmark outside the eurozone. Shares plunged amid concern the mainland's tightening economic measures and Europe's debt crisis will derail global growth.
Companies on the index traded at 9.7 times forecast earnings, around March 2009 levels. That compares with 12 times for the Standard & Poor's 500 Index.
ICBC jumped 6.7 percent to HK$4.31 (US$0.55). The Agricultural Bank of China, the nation's third-biggest lender by market value, surged 13 percent to HK$2.99. China Construction Bank, the second-biggest, rose 5.8 percent to HK$5.11, and Bank of China soared 7.7 percent to HK$2.65.
China's state-run Central Huijin Investment started buying shares in the nation's four biggest banks yesterday.
Commodity prices advanced after German Chancellor Angela Merkel and French President Nicholas Sarkozy pledged to deliver a plan to recapitalize Europe's banks and address Greece's sovereign debt crisis by November 3.
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