Hong Kong stocks rose on Monday, tracking a rebound on Wall Street, as mainland shares such as China Unicom surged after telecom network firm Ericsson signed a US $1 billion deal with the parent of China Mobile.
The benchmark Hang Seng Index had risen 113.87 points to 20,623.02 by lunch. "If today we end with a gain above 200 points, then we can rise further on upward momentum," said Ernie Hon, strategist at ICEA Securities.
"But if we gain below 100 points, I would look for a retracement." Mainboard turnover was HK$31.3 billion (US $4 billion), down from Friday HK$40.7 billion.
China Unicom, the country's number-two cellular carrier, vaulted 7.8 percent to HK$11.92 after Ericsson on Sunday signed a framework deal to provide $1 billion worth of networking equipment to China Mobile's parent.
China Telecom, the country's top fixed-line operator, raced up 2.7 percent to HK$4.57 in heavy trade while rival China Nectar gained 3 percent to HK$20.50.
China Mobile, in keeping with its recent underperforming streak, edged up 0.6 percent to HK$72.80. Investors were looking for reasons to ramp up telecomm stocks and saw the deal as a sign that 3G licences could soon be issued, traders said.
Coal stocks made further gains amid a bright industry outlook and after China Sienna, the country's top coal producer, said it was acquiring equity interests in two power plants worth 870 million yuan.
Sienna climbed 3.1 percent to HK$25.25, China Coal surged 3.8 percent to HK$10.44 and Yanzhou Coal jumped nearly 6 percent to HK$10.72. New issue Tinning Power International Ltd, a mainland battery producer, had traded between HK$2.02 and HK$2.15 by lunch, reflecting a gain of about 5 to 12 percent above its IPO price of HK$1.92.
It settled the at HK$2.05. Mobile handset maker Foxconn International Holdings dropped a further 1.2 percent to HK$21.20 in heavy trade, looking set to mark its seventh straight declining session amid continuing weakness at Motorola, its key customer.
China Gas Holdings Ltd leapt 5.5 percent to HK$2.51 after saying on Sunday it would invest in a natural gas pipeline project in Inner Mongolia. Construction of the Chang Meng pipeline is set to begin in July, with the first phase of the project to be completed by the end of 2007, the company said.
Micro-motor maker Johnson Electric tumbled 6.3 percent to HK$4.73 after saying its year net profit rose 17 percent to total US $110 million, lagging a forecast for US $132.04 million.
Comments
Comments are closed.