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Microcap & Penny Stocks : ASK: "THE LAST DON" OF MOMENTUM TRADES -- Ignore unavailable to you. Want to Upgrade?

To: MoneyMade who wrote (111)	11/24/1998 12:39:00 AM
From: MoneyMade	Respond to of 15987

HK stocks power ahead to end morning sharply up HONG KONG, Nov 24 (Reuters) - Hong Kong stocks ended Tuesday morning with the blue chip index hitting a seven-month high late in the session amid an inflow of funds drawn by strong performances on Wall Street and by Asian stocks, brokers said. The Hang Seng Index jumped 281.60 points, or 2.68 percent, to 10,796.13 at the midsession close. It was just below a session high of 10,807.17, the highest level since April 27. Turnover rose to HK$6.36 billion from Monday midsession's HK$5.09 billion. ''The market is pretty strong and index futures have traded at a premium to the cash market,'' said Percy Au-Young, sales director at DBS Securities. Au-Young said stocks were boosted by strong overseas markets, including those in the United States and southeast Asia. The Dow Industrials jumped 214.72 points, or 2.34 percent, to a record close of 9,374.27 on Monday on merger news. ''Definitely there is money flowing into Hong Kong but I doubt whether the market can rise non-stop,'' he said, adding that the market should pull back after the expiry of November index futures later this month. Properties led the blue chip gainers with Henderson Land surging HK$2.00, or 4.98 percent, to HK$42.20 and New World Development jumping HK$1.20, or 6.38 percent, to HK$20.00. Brokers said there was active buying of shares of small to medium banks on hopes of mergers and acquisitions in the sector following moves towards a merger between Deutsche Bank and Bankers Trust. Deutsche Bank AG (quote from Yahoo! UK & Ireland: DBKG.F) said on Monday it was preparing to buy Bankers Trust Corp (NYSE:BT - news) for US$93 a share or about US$9.2 billion in cash, creating the world's largest banking company. Guoco Group advanced HK$1.40, or 11.02 percent, to HK$14.10 and Wing Hang Bank rose HK$2.85, or 13.94 percent, to HK$23.30. The sector was boosted by expectations of improved earnings in 1999 and of another interest rate cut before the year-end, analysts said. Banks that had high fixed rate costs were among the chief beneficiaries, said analyst Arthur Lau at DSB Securities. Bethany Chan, head of research at Worldsec International, said the market had already discounted the next set of interest rate cuts and looked toppy at current levels. ''Fundamentally, the market looks toppy, but momentum-wise, people are buying and pushing it up,'' she said. The big jump on Tuesday was also due to the fact that the free float had been reduced after the government's HK$118 billion stock purchases in August, Chan added. ''Economically, Hong Kong is not yet set to recover. As we move towards year-end, we are still going to see wage cuts and with that I think the property sector will be weak,'' she said.