HK stocks climb as airlines take off
Source: Bloomberg News |
April 14, 2011, Thursday
|
Print Edition
Print Edition
HONG Kong stocks rose, driving the Hang Seng Index higher for the first time this week, as airlines gained after crude oil prices dropped in New York on Tuesday, countering declines among raw-material producers.
Cathay Pacific Airways Ltd, Hong Kong's No. 1 carrier, climbed 2 percent, while Air China Ltd, the world's biggest airline by market value, jumped 6.3 percent as crude fell for a second day on Tuesday. Developer Henderson Land Development Co gained 2.7 percent after billionaire Lee Shau-kee, the company's major shareholder, spent HK$10 billion (US$1.3 billion) exercising warrants at a premium. CNOOC Ltd, China's largest offshore oil producer, fell 0.8 percent.
"The airlines are rebounding due to falling oil prices," said Derrick Tan, a sales trader at CCB International Securities in Hong Kong. "We're still positive as valuations are neither expensive nor cheap. The credit tightening in China may soon come to an end as long as inflation remains under control."
The key index gained 0.7 percent to 24,135.03 at the close, erasing a loss of as much as 0.6 percent earlier. Three stocks advanced for each that fell among the index's 45 companies. The Hang Seng China Enterprises Index of H shares of Chinese companies rose 1 percent to 13,566.46, having dropped as much as 0.9 percent earlier.
The index rose 4.1 percent this year through Tuesday after positive economic data from the United States and China eased concern about the nuclear crisis in Japan and tensions in the Middle East. Shares in the gauge traded at an average 12.7 times forecast earnings on Tuesday, versus 14.4 times at the end of last year, according to data compiled by Bloomberg.
Cathay Pacific Airways Ltd, Hong Kong's No. 1 carrier, climbed 2 percent, while Air China Ltd, the world's biggest airline by market value, jumped 6.3 percent as crude fell for a second day on Tuesday. Developer Henderson Land Development Co gained 2.7 percent after billionaire Lee Shau-kee, the company's major shareholder, spent HK$10 billion (US$1.3 billion) exercising warrants at a premium. CNOOC Ltd, China's largest offshore oil producer, fell 0.8 percent.
"The airlines are rebounding due to falling oil prices," said Derrick Tan, a sales trader at CCB International Securities in Hong Kong. "We're still positive as valuations are neither expensive nor cheap. The credit tightening in China may soon come to an end as long as inflation remains under control."
The key index gained 0.7 percent to 24,135.03 at the close, erasing a loss of as much as 0.6 percent earlier. Three stocks advanced for each that fell among the index's 45 companies. The Hang Seng China Enterprises Index of H shares of Chinese companies rose 1 percent to 13,566.46, having dropped as much as 0.9 percent earlier.
The index rose 4.1 percent this year through Tuesday after positive economic data from the United States and China eased concern about the nuclear crisis in Japan and tensions in the Middle East. Shares in the gauge traded at an average 12.7 times forecast earnings on Tuesday, versus 14.4 times at the end of last year, according to data compiled by Bloomberg.
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