Stocks News
- HK stocks rebound sharply on interest rate cut expectation
Date: 30-Nov-2007 Sources: (Xinhua Online)
HONG KONG, Nov. 29 (Xinhua) -- Strong gains in property companies after U.S. shares jumped overnight on rising hopes of another interest rate cut in December led Hong Kong's benchmark index sharply higher Thursday.
The benchmark Hang Seng Index rose 1,111.30 points, or 4.06 percent, to 28,482.54 after trading between 28,114.68 and 28,667. 27 during the session.
H-share index, which reflected the performance of state-owned companies registered in the Chinese mainland, rose 607.36 points, or 3.18 percent, to 19,677.67.
Turnover rose to 146.59 billion HK dollars (18.84 billion U.S. dollars) from Wednesday's 104.13 billion HK dollars (13.39 billion U.S. dollars).
But analysts said the local market is likely to remain volatile in the short term and may consolidate as many shares are overpriced at current valuations.
Overnight in the U.S., Federal Reserve Board Vice Chairman Donald Kohn said credit conditions had deteriorated again in previous weeks, and suggested the Fed could step in to bolster the economy. The market interpreted the remarks as the Fed may be more inclined to cut rates at its next policy meeting Dec. 11. The Dow Jones Industrial Average rose 2.6 percent, or 331 points, Wednesday to 13,289, representing its biggest points gain since Oct. 2002.
Most Hong Kong blue chips ended in positive territory, led by property developers. The property sub-index jumped 5.4 percent.
Sino Land, the best-performing Hang Seng Index constituent, rose 11 percent to 27.45 Hong Kong dollars, Hang Lung Properties gained 7.7 percent to 34.40 Hong Kong dollars and Henderson Land ended 6.8 percent higher at 68.45 Hong Kong dollars.
China Mobile, the blue chip with the largest capitalization in the local market, rose 4.2 percent to 140.10 Hong Kong dollars.
Ping An Insurance gained 6.7 percent to 83.20 Hong Kong dollars.
The finance sub-index surged 1,235.10 points or 3.12 percent to40,839.18.
The properties sub-index soared 1,936.55 points or 5.41 percent at 37,752.44.
The commerce and industry sub-index went up 776.36 points or 4.77 percent to 17,064.97.
The utilities sub-index rose 1,287.36 points or 3.35 percent at39,723.19.
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