Hong Kong shares end morning sharply higher led by properties, banks - UPDATE |
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Mon, 15 Jan 2007 06:27
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HONG KONG (XFN-ASIA) - Share prices ended the morning session sharply higher, led by the property and banking sectors, after another record close on Wall Street Friday following robust US consumer spending data, dealers said.They said property stocks were boosted by expectations of strong housing prices this year after major developers put in high bids in recent government auctions, while banks were underpinned by hopes that they will benefit from an expansion of yuan business in Hong Kong.The banking sector got an additional boost from rumors that a major financial institution is considering acquiring Chong Hing Bank, known previously as Liu Chong Hing Bank, they added.The Hang Seng Index ended the morning up 289.49 points or 1.48 pct at 19,902.90, off a low of 19,746.07 and high of 19,925.76.Turnover was 28.41 bln hkd.The property sector index was up 680.78 points or 2.84 pct at 24,693.66.'The positive consumer spending data in the US certainly boosted investor sentiment and helped the market recover from falls last week,' said Auyeung Tat, managing director at Apex Capital Management.The US Commerce Department announced Friday that retail sales rose 0.9 pct in December, the fastest pace in five months, bolstering optimism over the strength of the US economy.'Properties paced gainers because many people expect housing prices this year will be much firmer than last year's after developers offered aggressive purchase prices in recent government land auctions. The developers' action reflected their positive view of the housing market,' Auyeung said.He said buying of property stocks was also driven in part by a view among many investors that Hong Kong properties could serve as 'a hedge' against the rising value of the yuan against the US dollar.Among properties, Cheung Kong was up 3.05 hkd or 3.06 pct at 102.60, Henderson Land up 1.05 hkd or 2.25 pct at 47.75, Sun Hung Kai Properties up 3.60 hkd or 3.84 pct at 97.35 and Wharf Holdings up 0.78 hkd or 4.70 pct at 17.36.Auyeung said banking stocks posted sharp gains on expectations that local banks will benefit in a significant way from China's decision to expand yuan business being conducted in Hong Kong.China's State Council last week approved the expansion of yuan business in Hong kong by allowing Chinese financial institutions to issue yuan-denominated loans in the territory.Beijing and Hong Kong officials are scheduled to meet this week to chalk out details on the proposal.The financial sub-index ended the morning up 414.81 points or 1.31 pct at 32,138.77, with Hang Seng Bank gaining 2.90 hkd or 2.65 pct at 112.50, Bank of East Asia up 2.15 hkd or 4.72 pct at 47.70, HSBC up 0.50 hkd or 0.36 pct at 139.90 and BOC Hong Kong up 1.15 hkd or 5.71 pct at 21.30.Dealers said BOC Hong Kong's gains were also boosted by reports the bank plans to incorporate in the mainland through unit, Nanyang Commercial Bank.Auyeung said that 'interest in banking stocks was also boosted by hopes of a further consolidation in this sector, with Chong Hing Bank possibly being targeted for possible acquisition by one of the territory's major financial institutions.'Chong Hing Bank surged 3.50 hkd or 18.23 pct to 22.70.Among other stocks, Hutchison Whampoa was up 0.80 hkd or 1.01 pct at 79.75 on reports that its unit AS Watson is preparing to enter India's retailing sector.Elsewhere, China Mobile rose 0.90 hkd or 1.36 pct at 66.85, PetroChina was up 0.16 hkd or 1.64 pct at 9.93, Sinopec up 0.08 hkd or 1.25 pct at 6.47 and Chalco up 0.13 hkd or 1.85 pct at 7.15.The Hang Seng China Enterprises index ended the morning up 114.59 points or 1.18 pct at 9,789.30.(1 usd = 7.8 hkd)jun.concepcion@xfn.comjc/rc
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Hong Kong shares end morning firmer led by China banks on yuan bond approval 