Hang Seng Index jumps as HSBC surges
Tuesday March 5, 1:11 PM
sg.news.yahoo.com
HONG KONG (Reuters) - Hong Kong stocks were sharply higher by midday on Tuesday, boosted by two days of powerful gains on Wall Street and a strong rise in HSBC Holdings on hopes that the worst may be over for the global banking giant.
The benchmark Hang Seng Index of 33 blue chips jumped 2.43 percent, or 260.02 points, to 10,964.14, off a high of 11,003.04, the first time it has crawled above the key 11,000 psychological resistance level since February 18.
Market turnover was heavy at HK$6.88 billion (US$882 million), higher than the average full-day turnover over the last 20 days.
Traders forecast the index may rise to 12,000 points by mid-April, helped by expectations of a recovery in world economies.
"The market has been very suppressed," said Dale Tsang, head of equities trading in SBI E2-Capital.
"It's not so much that people have become suddenly optimistic but that they have been too pessimistic," Tsang added.
The Hang Seng was the worst performing key Asian index in 2001 and so far this year it has underperformed its Asian peers with a 3.8 percent fall, largely caused by fears that the territory would sink into its second recession in four years. |
