Hong Kong blue chip stocks finished flat on Friday as investors paused for breath after a recent earnings-inspired rally. But China commodity plays such as gold Miner Zijin Mining Group Ltd and aluminium producer Chalco gained ground on a weak US dollar.
Zijin Mining, China's second largest gold miner, rose 10.29 percent to HK$1.93 as world gold prices neared an 8-month high helped by dollar weakness and record-high crude oil prices.
The world's second largest alumina producer, Aluminium Corp of China Ltd (Chalco), rose 3.1 percent to HK$4.90 and was among the most actively traded Hong Kong shares.
Blue chips were largely unchanged as investors paused for breath after a sharp rally earlier in the week.
The blue chip Hang Seng Index rose 0.04 percent, or 5.75 points, to 15,450.95.
The index rose 2.66 percent over the course of the week, tapping fresh four-and-a-half year highs and extending its gains to 8.6 percent so far this year.
Volume remained strong and in-line with recent averages, with HK$22.5 billion ($2.88 billion) worth of shares changing hands.
"The next focus will be on the Cheung Kong group of companies as well as Hutchison, which are seen reporting pretty good earnings," said Louis Wong, research director at Phillip Securities.
Ports-to-telecoms conglomerate Hutchison Whampoa Ltd and its property flagship Cheung Kong (Holdings) Ltd report on August 25.
Wong expects the Hang Seng Index to trade in a tight range next week with investors eyeing strong economic fundamentals and rising liquidity but worrying about rising world oil prices.
Strong psychological resistance at 15,500 is also seen keeping blue chips in check in the short term.
Blue chip trading firm Li & Fung Ltd fell 4.07 percent to HK$16.50 after the firm posted weaker-than-expected first-half earnings late on Thursday.
Morgan Stanley downgraded Li & Fung to "equal-weight", citing stretched valuations. But traders said the firm was suffering from short-term profit-taking since it is one of the top performing blue chip shares so far this year.
Recent laggard Esprit Holdings surged 4.9 percent to HK$62.15, after tapping a fresh record high of HK$63 in intraday trade.
Traders said the stock was benefiting from rotational buying and a sagging dollar since the firm gains most of its revenue from Europe.
Property-heavy conglomerate Swire Pacific Ltd slipped 1.7 percent to HK$75.25 after the firm reported a big jump in first-half earnings on Thursday thanks largely to one-off gains.
Swire will only start reaping the full benefits of Hong Kong's soaring rents next year when its offices and shopping centres renegotiate 3-year leases signed during a 2003 property slump.
Fresh interest rate worries following a set of strong US economic data hurt property stocks, with the Hang Seng properties sub index down 0.5 percent to 19,223.
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