HK stocks sharply higher by midday, rental firms soar
(Updates with HSI midday, stock moves)
sg.biz.yahoo.com
HONG KONG, May 2 (Reuters) - Hong Kong's key share index was sharply higher by midday on Thursday, with property rental firms surging after a government plan to build its headquarters on a prime location lifting sentiment on the moribund sector.
The HK$6.4 billion (US$820 million) government project, coupled with hopes for a global economic recovery, boosted hopes that the rental sector would become more robust in the longer term, leading investors to snap up the shares of rental firms.
Developers had feared the prime site would be made available for commerical development, which would have added to an oversupply of top office space which is already pressuring rental prices.
The benchmark Hang Seng Index <.HSI> of 33 blue chips was up 1.85 percent, or 212.33 points, at 11,709.91, running into overbought territory on the 14-day relative strength index.
Still, traders expect the index to extend its gains in the short term after it broke through a key resistance level at 11,509 points, the average close of the last 250 days. |
