Bank, Property Shares Sought As U.S. Rally Fuels Advance
Dow Jones Newswires
HONG KONG -- Propelled by a strong rally in the U.S. overnight, Hong Kong shares closed higher Thursday, led by market heavyweights HSBC Holdings and China Mobile.
The blue-chip Hang Seng Index jumped 301.92 points, or 2.3%, to 13637.87. It traded the session in a range of 13550.78 and 13713.06. Advancers beat decliners 29 to 5, while 4 stocks remain unchanged.
The broader All Ordinaries Index finished ahead 102.84 points at 5737.39. Trading volumes were worth 10.08 billion Hong Kong dollars, compared with HK$10.73 billion in the previous session.
"Whether it's a real turnaround [for the Hang Seng] hinges on volume in the coming days," said Kenny Tang, associate director with Tung Tai Securities.
Giving the Hang Seng a boost was the overnight rally on Wall Street. The Dow Jones Industrial Average surged 3.2% to close at an eight-month high, cheered by mild inflation news and a 0.50 percent interest rate cut Tuesday.
Closer to home, investors moved into banking and property stocks. Volume leader HSBC Holdings gained 2.9% to HK$99.25, on news that it has agreed to pay US$103 million for a 53% stake in Taiwan's biggest asset management company China Securities Investment Trust Corp. The purchase will be the first foray into the Taiwan financial business by a Hong Kong-listed bank.
Boosted by a 3.9% gain of the U.S. Nasdaq Composite overnight and strong short-covering spree, China Mobile surged 4% to HK$39.0. Its smaller rival, China Unicom, added 0.8% to HK$12.05, after jumping 3% in the previous session.
Pacific Century CyberWorks, the dominant telecom company in the city, finished up 0.9% at HK$2.725, on news Chairman Richard Li may soon cede some control1 of his company's operations. Investors have hammered PCCW shares in the past year over the company's financial situation and Mr. Li has been criticized for his company's false claims that Mr. Li received a degree from Stanford University.
However, some participants said it isn't yet time to buy PCCW. Francis Lun, managing director with Fulbright Securities, said PCCW's business fundamentals are still a problem and money earned in the coming years will be used to pay off debt.
Ports and telecom operator Hutchison Whampoa added 1.5% to HK$87.25, after its Japanese partner NTT DoCoMo said it would up its stake in unit Hutchison Telephone.
Elsewhere in the market, China-related shares turned in a mixed performance, as investors switched between one sector to another.
Profit-taking hit the oil sector, sending upstream oil plays PetroChina and CNOOC down 3.9% and 2.4%, respectively. Still, PetroChina has gained 9% while CNOOC up 11.9% for the month. Downstream-focused Sinopec slipped 1.3% to HK$1.47. It's up 7.2% since the beginning of May.
CITIC Pacific jumped 5.7% to HK$25.85. The red-chip company is building a fiber optic network in China and it said earlier that it's in talks to bring China Satellite into the venture in order to gain a retail telecom license in the mainland.
China electronic manufacturing service provider Sinotronics made an impressive debut on the Growth Enterprise Market. The newcomer jumped 61% to HK$1.45 on its debut, compared with the offer price of 90 HK cents.
--------------------------------------------------------------------------------
URL for this Article:
interactive.wsj.com
Hyperlinks in this Article:
(1) interactive.wsj.com
--------------------------------------------------------------------------------
Copyright © 2001 Dow Jones & Company, Inc. All Rights Reserved.
Printing, distribution, and use of this material is governed by your Subscription Agreement and copyright laws.
For information about subscribing, go to wsj.com
Used with permission of wsj.com |
