Hong Kong shares close sharply higher; index regains 20,000 - UPDATE |
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Mon, 15 Jan 2007 09:56
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HONG KONG (XFN-ASIA) - Share prices closed sharply higher led by properties and banks, with the benchmark index regaining the key 20,000 level after another record close on Wall Street Friday, dealers said.They said property stocks attracted interest on hopes of strong home sales and housing prices this year, while banks were underpinned by hopes that they will benefit from increased yuan business in Hong Kong.The Hang Seng Index closed up 455.15 points or 2.32 pct at 20,068.56, after moving in the range of 19,746.07 and 20,073.29.Turnover was 56.15 bln hkd.'The market rebounded sharply after... another record close in the US, with properties leading the gains on the sector's promising outlook for this year,' said Jackson Wong, investment manager at Tanrich Securities.'Developers will likely to launch more new projects and should see better response compared to last year given the stable interest rate environment,' he said.Wong said banks and China-related stocks also saw strong buying interest, partly helped by strong gains in China's A-share markets today.The property sector index closed up 712.78 points or 2.97 pct at 24,725.66, with Cheung Kong up 3.25 hkd or 3.26 pct at 102.80, Henderson Land up 0.90 hkd or 1.93 pct at 47.60, Sun Hung Kai Properties up 3.30 hkd or 3.52 pct at 97.05 and Wharf Holdings up 0.65 hkd or 2.29 pct at 29.0.Banking stocks posted sharp gains on expectations that they will benefit in a significant way from China's decision to allow expanded yuan business in Hong Kong, dealers said.China's State Council last week approved the issuance of yuan-denominated bonds by Chinese financial institutions in Hong Kong.Beijing and Hong Kong officials are scheduled to meet this week to chalk out details.The financial sub-index closed up 534.84 points or 1.69 pct at 32,258.80, with Hang Seng Bank gaining 1.70 hkd or 1.55 pct at 111.30, Bank of East Asia up 2.5 hkd or 5.49 pct at 48.05, HSBC up 0.70 hkd or 0.50 pct at 140.10 and BOC Hong Kong up 1.35 hkd or 6.7 pct at 21.50.Dealers said BOC Hong Kong was also boosted by reports the bank plans to incorporate in the mainland through unit, Nanyang Commercial Bank.Among mainland financials, China Construction bank was up 0.17 hkd or 3.6 pct at 4.89, Bank of China up 0.07 hkd or 1.74 pct at 4.10, ICBC up 0.10 hkd or 2.16 pct at 4.72 and China Life gained 1.50 hkd or 5.2 pct at 25.3.'China related stocks are still popular, but they will remain volatile in the near term,' Wong said.China Mobile rose 2.4 hkd or 3.64 pct at 68.35, PetroChina was up 0.19 hkd or 1.94 pct at 9.96, Sinopec up 0.13 hkd or 2.03 pct at 6.52 and Chalco up 0.22 hkd or 3.13 pct at 7.24.The Hang Seng China Enterprises index ended up 297.34 points or 3.07 pct at 9,972.05.Among other stocks, Hutchison Whampoa was up 1.40 hkd or 1.77 pct at 80.35 on reports that its unit AS Watson is preparing to enter India's retailing sector.(1 usd = 7.8 hkd)roby.lau@xfn.comrl/rc
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Hong Kong shares close sharply higher led by properties; index regains 20,000 