Hong Kong shares sharply higher in rebound; HSBC up after 2006 results - UPDATE |
|
|
|
Published
:
Tue, 06 Mar 2007 04:05
|
HONG KONG (XFN-ASIA) - Share prices were sharply higher in early trade in a rebound after yesterday's 4 pct drop, with investors taking note of a firmer Tokyo bourse and stronger markets elsewhere in the region, dealers said.HSBC was up after its 2006 results came in largely in line with expectations and following overnight gains in its ADR prices.At 10.25 am, the Hang Seng index was up 295.33 points or 1.58 pct at 18,960.21, off a low of 18,899.21 and high of 18,992.38.Turnover was 10.44 bln hkd.'The market saw a rebound after steep falls yesterday. Large caps like HSBC and select China financials saw strong buying interest after posting huge losses in recent sessions,' said Castor Pang, strategist at Sun Hung Kai Financial group.The Tokyo bourse's early gains and firmer A-share markets on the mainland helped sentiment, he said.'After falling by 2,000 points since last week, the local market is not likely to see a very sharp further correction in the near term,' he said, adding that the index should see support at the 18,600 points level.However, Pang added that trade will remain somewhat volatile given the global market uncertainties.HSBC posted sharp gains after announcing that its 2006 pretax profit stood at 22.086 bln usd, up 5 pct year-on-year, while its Hong Kong unit Hongkong and Shanghai Banking Corp posted a net profit of 37.71 bln hkd for the year, up 14.7 pct.Dealers said the bank saw strong buying interest as the results did not provide negative surprises, with the net profit of 15.79 bln usd still very satisfactory considering a 10.6 bln usd hit for bad debts in its US mortgage business.HSBC was up 3.0 hkd or 2.26 pct at 136, after opening at 135.2.HSBC unit Hang Seng Bank gained 1.50 hkd or 1.42 pct at 107.4 after announcing that its net profit for 2006 rose 6.1 pct to 12.04 bln hkd on the back of a robust performance by its personal financial services and commercial banking operations.Analysts had expected Hang Seng Bank's net profit to come within the 11.50-12.8 bln hkd range.Among other local banks, Bank of East Asia was up 1.40 hkd or 3.48 pct at 41.65 and BOC Hong Kong up 0.36 hkd or 2.0 pct at 18.4.Among China financials, China Construction Bank gained 0.11 hkd or 2.72 pct at 4.15, Bank of Communications was up 0.26 hkd or 3.70 pct at 7.29, ICBC up 0.10 hkd or 2.51 pct at 3.09 and China Merchants Bank up 0.40 hkd or 2.60 pct at 14.98.China Life gained 0.52 hkd or 2.70 pct at 19.78, while Ping An was up 0.65 hkd or 2.01 pct at 33.0.Local properties were higher, with the sectoral sub-index up 351.57 points or 1.57 pct at 22,674.67.Cheung Kong gained 2.25 hkd or 2.51 pct at 91.65, Henderson Land was up 0.20 hkd or 0.46 pct at 43.25 and Sino Land up 0.34 hkd or 2.06 pct at 16.86.New World Development gained 0.16 hkd or 1.0 pct at 16.2 after it said it plans to spin-off its unit New World Department Store China for a listing in Hong Kong.Sun Hung Kai Properties was up 0.90 hkd or 1.01 pct at 90.05 ahead of first-half to December results tomorrow.Pacific Basin gained 0.37 hkd or 6.75 pct at 5.85 despite reporting a drop in 2006 net profit to 110.29 mln usd from the year-earlier 147.14 mln.Among other stocks, China Mobile gained 1.0 hkd or 1.48 pct at 68.35, China Telecom was up 0.05 hkd or 1.49 pct at 3.4, China Communications Construction up 0.28 points or 3.31 pct at 8.74 and Mengniu Dairy up 0.74 hkd or 3.87 pct at 19.68.The Hang Seng China Enterprises index was up 189.91 points or 2.23 pct at 8,722.23.(1 usd = 7.8 hkd)roby.lau@xfn.comrl/rc
|
|
|
|
Print this Story
HSBC appoints Jason Sadler as Hong Kong head of insurance business 