Related News

Home » Business » Finance

HK shares post best weekly increase

HONG Kong shares rose to new highs yesterday, recording their best weekly gain in two months, propelled by earnings momentum and China's reiteration of its commitment to a loose monetary policy.

The Chinese government said on Thursday that recovery in the world's third-largest economy was not yet on a solid footing and that the nation would stick to an appropriately loose monetary stance and proactive fiscal policy.

"We are definitely on the riskier side now, but the market is still hot and people can't let go," said Jackson Wong, investment manager with Tanrich Securities in Hong Kong.

The benchmark Hang Seng Index trimmed gains to close up 0.8 percent at 19,982.79, after breaching 20,000 points for the first time since the Lehman Brothers debacle in September 2008.

The gauge posted its best weekly win in eight weeks, advancing 6.3 percent despite a two-session pullback.

Turnover rose to HK$83.6 billion (US$10.8 billion) from Thursday's HK$74 billion.

"The market is unlikely to go much further without a correction. There should be a pullback after the IPO excitement next week," said Tanrich's Wong.

On Thursday, BBMG Corp, a leading building materials maker in China, raised US$768 million in a Hong Kong IPO at the top end of an indicative range to become one of the largest such deals this year, and setting a positive tone for other big listings to follow. The stock will commence trading on Wednesday.

The index fell off early highs as investor took profit on local property stocks following their strong run-up. Top developer Sun Hung Kai Properties fell 1.7 percent, while conglomerate Swire Pacific shed 3 percent.

The China Enterprises Index, which represents top locally listed mainland stocks, rose 1.4 percent to 11,984.36.

Foxconn International Holdings, a unit of Taiwan's Hon Hai Precision, fell after the cell phone manufacturer said it might record a loss in the second half on lower demand and pricing for its products amid the global economic downturn. The stock dropped 7.1 percent to HK$5.23.

China Yurun Food slid 12 percent to HK$12.58 after it said it would sell HK$1.72 billion worth of new shares to its controlling shareholder.


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