Hang Seng gains on profit hope
By Sui-Lee Wee and Chen Yixin |
August 3, 2010, Tuesday
|
Print Edition
Print Edition
HONG Kong stocks rose to a three-month closing high yesterday, led by hopes for strong earnings at HSBC Holdings Plc and on news that contract cell phone maker Foxconn International Holdings Ltd has resumed operations at a factory in India.
The benchmark Hang Seng Index ended up 1.82 percent or 382.98 points at 21,412.79, its highest close since April 26. The China Enterprises Index of top locally listed Chinese mainland companies closed up 2.32 percent at 12,181.45.
Index heavyweight HSBC was up 1.6 percent at a three-month high. The Asia-focused British lender said after the market closed that its first-half net profit doubled to US$6.76 billion from US$3.35 billion a year earlier because of lower impairment charges.
Some analysts said the surging Hong Kong stock market could be in for a pause as there were few positive catalysts to sustain buying.
"China's PMI is on the downside. It makes us worried about the economy over the next few months," said Alfred Chan, chief dealer at Cheer Pearl Investments.
"Unless we see real good news relating to relaxation in the mainland's monetary policies, I see no reason for the market to go up any further," he said, adding that the index could hit resistance at 21,500.
HSBC's China Purchasing Managers' Index fell below the boom-bust line of 50 in July for the first time since March 2009, while the official purchasing managers' index fell to a 17-month low in July.
"In the short term, from the technical charts, most have been overbought. There could be some consolidation around 21,700," said Peter Lai, a director at DBS Vickers.
Contract cell phone maker Foxconn International Holdings rose as much as 9.2 percent to a five-week high before ending up 8.79 percent, extending earlier gains on news that the company had resumed operations in India.
The benchmark Hang Seng Index ended up 1.82 percent or 382.98 points at 21,412.79, its highest close since April 26. The China Enterprises Index of top locally listed Chinese mainland companies closed up 2.32 percent at 12,181.45.
Index heavyweight HSBC was up 1.6 percent at a three-month high. The Asia-focused British lender said after the market closed that its first-half net profit doubled to US$6.76 billion from US$3.35 billion a year earlier because of lower impairment charges.
Some analysts said the surging Hong Kong stock market could be in for a pause as there were few positive catalysts to sustain buying.
"China's PMI is on the downside. It makes us worried about the economy over the next few months," said Alfred Chan, chief dealer at Cheer Pearl Investments.
"Unless we see real good news relating to relaxation in the mainland's monetary policies, I see no reason for the market to go up any further," he said, adding that the index could hit resistance at 21,500.
HSBC's China Purchasing Managers' Index fell below the boom-bust line of 50 in July for the first time since March 2009, while the official purchasing managers' index fell to a 17-month low in July.
"In the short term, from the technical charts, most have been overbought. There could be some consolidation around 21,700," said Peter Lai, a director at DBS Vickers.
Contract cell phone maker Foxconn International Holdings rose as much as 9.2 percent to a five-week high before ending up 8.79 percent, extending earlier gains on news that the company had resumed operations in India.
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