Hong Kong shares up after Fed rate pledge
By Jun Ebias and Farah Master |
March 18, 2010, Thursday
|
Print Edition
Print Edition
SHARES in Hong Kong ended higher yesterday, as investors cheered the United States Federal Reserve's pledge to keep rates near zero for a prolonged period.
Banks and local developers received a boost from the low-rate scenario, helping the key index to snap out of a three-day decline to close at the highest in more than eight weeks.
The Hang Seng Index was up 1.72 percent or 361.56 points at 21,384.49, the highest since the January 19 closing level. Turnover rose to HK$65.9 billion (US$8.5 billion), the highest since March 5 and up from Tuesday's HK$50.3 billion.
The China Enterprises Index of top locally listed Chinese mainland stocks was up 2.44 percent at 12,231.47.
"We have a very strong recovery because the US indicated that there will be a long period before they will consider raising rates," said Peter So, strategist at CCB International. "So the market is more comfortable to further accumulate shares at lower levels.
"Some companies have released impressive earnings figures. The market sees some possible upside in the earnings, so people are now buying ahead of the good news."
Hong Kong developer Sun Hung Kai Properties was up 4 percent at HK$118.90, the highest since October 23 last year. Rival Hang Lung Properties gained 3.7 percent, with low rates expected to spur demand for real estate.
Index heavyweight HSBC and China Construction Bank both jumped 1.8 percent.
Titan Petrochemicals Group surged 26.7 percent to HK$0.57, matching the close posted on December 11, 2007, after the company said it would issue 1 billion new shares, raising HK$370 million to pay off debt and fund working capital. The stock was the top gainer for the day.
Technology plays climbed after Intel jumped in US trade on speculation the world's top chip maker will release positive guidance for the current quarter. Johnson Electric rose 4.2 percent and Lenovo Group gained 1.5 percent. SMIC added 1.3 percent.
Macau casino operator Galaxy Entertainment rose 6.9 percent, while rival SJM Holdings was up 7 percent. Macau said it would regulate the building of new casinos, possibly helping boost profits at existing operators.
Banks and local developers received a boost from the low-rate scenario, helping the key index to snap out of a three-day decline to close at the highest in more than eight weeks.
The Hang Seng Index was up 1.72 percent or 361.56 points at 21,384.49, the highest since the January 19 closing level. Turnover rose to HK$65.9 billion (US$8.5 billion), the highest since March 5 and up from Tuesday's HK$50.3 billion.
The China Enterprises Index of top locally listed Chinese mainland stocks was up 2.44 percent at 12,231.47.
"We have a very strong recovery because the US indicated that there will be a long period before they will consider raising rates," said Peter So, strategist at CCB International. "So the market is more comfortable to further accumulate shares at lower levels.
"Some companies have released impressive earnings figures. The market sees some possible upside in the earnings, so people are now buying ahead of the good news."
Hong Kong developer Sun Hung Kai Properties was up 4 percent at HK$118.90, the highest since October 23 last year. Rival Hang Lung Properties gained 3.7 percent, with low rates expected to spur demand for real estate.
Index heavyweight HSBC and China Construction Bank both jumped 1.8 percent.
Titan Petrochemicals Group surged 26.7 percent to HK$0.57, matching the close posted on December 11, 2007, after the company said it would issue 1 billion new shares, raising HK$370 million to pay off debt and fund working capital. The stock was the top gainer for the day.
Technology plays climbed after Intel jumped in US trade on speculation the world's top chip maker will release positive guidance for the current quarter. Johnson Electric rose 4.2 percent and Lenovo Group gained 1.5 percent. SMIC added 1.3 percent.
Macau casino operator Galaxy Entertainment rose 6.9 percent, while rival SJM Holdings was up 7 percent. Macau said it would regulate the building of new casinos, possibly helping boost profits at existing operators.
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