Economic Trend News
- Roundup: HK stocks close at record high
Date: 30-Oct-2007 Sources: (Shenzhen Daily)
Hong Kong share prices surged 3.88 percent Monday to a record high of 31,586.90 points, pushed by blue chips and boosted by the Wall Street rally on Friday.
The benchmark Hang Seng Index opened 1.87 percent higher at 30,986.22 points on Monday morning and soon passed the important psychological level of 31,000 before reaching the day's high of 31,604.
Turnover also rose to 177.6 billion HK dollars (23 billion U.S. dollars), compared with 157.38 billion HK dollars on Friday.
Dealers here said that the market was driven mainly by strong liquidity and expectation about the possible rate cut by the U.S. Fed on Wednesday. They said the bullrun was expected to continue although the market could go through corrections in the coming days.
Statistics indicated that capital are pouring into Hong Kong in a constant manner over the past month, pushing up HK dollars and forcing the Hong Kong Monetary Authority to sell billions of HK dollars to defend HK dollar's peg to the U.S. dollar.
Of the 40 constituents of Hang Seng, the prices of 22 stocks hit new record high. Cathay Pacific airline was the only stock within the Hang Seng constituents that witnessed its share price falling into the negative territory, due to the jumping of crude oil prices.
Property stocks continued its bull run and outperformed the market, with the index of the sector soared 6.22 percent, as investors expected a rate cut by the U.S. Fed on Wednesday.
Cheung Kong and Hutchison jumped 9 percent and 8 percent to 158.5 HK dollars and 98.4 HK dollars, respectively. Hang Lung Property shot up 8.5 percent to 39.15 HK dollars. Property laggard Wharf soared 8 percent to 46.85 HK dollars, while Swire jumped 14 percent to 115 HK dollars.
Smaller plays were also up. K. Wah gained 13 percent to 5.41 percent. Chinese Estates was firmer by 6 percent to 16 HK dollars.
Heavyweight HSBC rose 3 percent to 149.9 HK dollars while China Mobile also rose 3 percent to 158.9 HK dollars, setting a new high.
The H-shares, or Chinese mainland companies listed in Hong Kong, witnessed a strong rebound, with its index jumping 3.30 percent to close at 20194.
Bocom is the top gainer, whose price soared 10.56 percent to 14.24 HK dollars on news of HSBC's further buildup in the bank. HSBC has raised holding in the bank to 19.15 percent.
On resource sector, PetroChina put on 3.16 percent to 19.62 HK dollars. Analysts had predicted further rise of the stock, as its IPO for A shares has frozen record 3.3 trillion yuan in the mainland. PetroChina is scheduled to make its A-share debut in Shanghai on next Monday.
CNOOC, the largest offshore oil company of China, broke new record ending 8.95 percent higher at 16.56 HK dollars. The stock has been hotly pursued by investors due to rising crude oil prices.
On the coal stock side, Yanzhou Coal leapt 7.68 percent to 17. 38 HK dollars on profit growth in the first six months. China Shenhua and China Coal added 3.28 percent and 6.31 percent, respectively.
Aviation stocks are one of the losers of the day. Air China, China East Air and China South Air shed 0.24 to 2.12 percent, mainly due to the jumping of crude oil prices. (One U.S. dollar equals 7.74 HK dollars)
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