The story appears on

Page B3

August 1, 2009

GET this page in PDF

Free for subscribers

View shopping cart

Related News

Home » Business » Finance

HK market seen to stay on upward trend

HONG Kong stocks climbed yesterday, fueled by positive earnings momentum and analyst upgrades.

The Hong Kong market recorded another month of hefty gains in July, its fifth winning month.

In the absence of a major disappointment in United States economic data due next week, or in corporate earnings that will continue to trickle in through August, analysts expect the stock market to continue its upward trajectory.

"A lot of people, including some long funds out there, are still underweight on the market because they didn't buy the recovery story. But there is only so long you can wait, you have to put that money to work," said Andrew Sullivan, sales trader with MainFirst Securities.

Power companies, which have lagged the market rally this year, jumped yesterday, after Datang International Power Generation forecast a surge in first-half profit. Datang jumped 5.4 percent to HK$5.09 (66 US cents).

China Resources Power climbed 5.5 percent in Hong Kong. The country's fourth-largest power producer plans to take a 25 percent stake in a 25 billion yuan (US$3.66 billion) nuclear project in Hunan Province, Chief Financial Officer Wang Xiaobin told Reuters on Thursday.

The benchmark Hang Seng Index finished up 339.25 points at 20,573.33 after scaling an 11-month high of 20,712.66 earlier amid strong corporate earnings forecasts and analyst upgrades.

HSBC led the charge with a 4.6 percent jump even as some analysts predicted a loss for the global banker when it reports its first-half earnings next week on the back of write-offs at its US unit.

The gauge gained 11.9 percent in July and 3 percent in its third consecutive weekly rally.

The China Enterprises Index, which represents top locally listed mainland stocks, rose 1.1 percent to 12,123.59.

Local property developers surged after Morgan Stanley forecast a further 20 percent increase in home prices and a 15 percent rise for offices.

"The liquidity rush will continue to drive up Hong Kong asset prices and the performance of property stocks," said Morgan Stanley analysts.

Henderson Land jumped 5.8 percent, while Hysan Development vaulted 10.1 percent, after both stocks were raised to an overweight rating by the investment house.

Hang Lung Properties rose 6 percent after it posted a forecast-matching 53 percent drop in underlying profit for the year ended June.


Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.

沪公网安备 31010602000204号

Email this to your friend