Hong Kong stocks edged higher on Wednesday with property stocks such as Cheung Kong bouncing back from recent losses on interest rate jitters. Investors also expect a robust annual earnings report from one of the city's largest property developers, Sun Hung Kai Properties, on Thursday thanks to high property prices and rising housing and commercial rents.
Sun Hung Kai Properties Ltd rose 0.6 percent to HK$82.50 while Cheung Kong (Holdings) Ltd rose 0.95 percent to HK$85.30.
Dealers however said the market was likely to stay quiet ahead of a US rate setting meeting next week. Analysts anticipate a 25 basis points rate hike from the Federal Reserve, but the economic toll from Hurricane Katrina has left many wondering whether the latest rate upcycle may peak sooner than previously anticipated.
"There's a distinct lack of buying. Investors want to wait until after the Fed meeting," said Francis Lun, general manager at Fulbright Securities.
The blue chip Hang Seng Index rose 0.11 percent, or 16 points, to 15,086.62. Volume was below recent averages with HK$17 billion (US $2.2 billion) worth of shares exchanged.
Global retailer Esprit Holdings Ltd was the top blue chip loser, falling 2.34 percent to HK$60.40 after posting a 67 percent rise in annual earnings driven by strong sales in Europe.
Analysts called the results unsurprising and said Esprit was trading at a fair valuation. The shares tapped record highs last week.
Hong Kong flagship carrier Cathay Pacific Airways fell 0.72 percent to HK$13.70 on news it would be allowed to increase its fuel surcharge for a seventh time since June 2004 due to the high price of oil.
A dip in China's largest oil producer PetroChina Co Ltd helped push the China enterprise stocks index lower.
PetroChina fell 0.8 percent to HK$6.15. The shares have fallen 13.3 percent over the past month with investors digesting a hefty share sale.
China enterprise stocks, better known as H-shares, fell 0.55 percent to 5,078.28.
Asia's largest oil refiner Sinopec Corp was among the biggest losers, down 2.2 percent to HK$3.35.
Cosmetics retailer Sa Sa International Holdings rebounded 4.9 percent to HK$3.22 after a steep sell-off earlier this week on worries its sales growth was lower than expected on signs mainland China tourists are spending less than anticipated in Hong Kong shops.
Publisher SCMP Group fell 2.4 percent to HK$3.10 after posting a worse-than-expected 1 percent rise in first half earnings late on Tuesday. The shares are down 7.3 percent over the past 3 months despite signs of an improving Hong Kong jobs market, which is seen boosting classified advertising revenues.
Comments
Comments are closed.