Hong Kong blue chips rebounded 0.43 percent on Friday following the previous session's broad sell-off, led by market heavyweights China Mobile Ltd and HSBC Holdings Plc. But mainland H shares fell as investors grew wary of upcoming profit reports after earnings from mainland lender China Construction Bank on Thursday came in slightly below expectations.
The benchmark Hang Seng index rose 72.41 points to end at 16,955.45 for a weekly loss of 2.2 percent. The China Enterprises index of H-shares fell 0.43 percent to 6,868.53. Turnover was HK $24.1 billion (US $3.1 billion) compared to Thursday's HK $27.8 billion.
"I think people are concerned about the upcoming results," said Y.K. Chan, strategist at Phillip Securities. "It's still unclear what China will do next to cool the economy; the result announcements haven't been strong." China Shenhua Energy Co Ltd, the country's largest coal miner, fell 2.2 percent to HK $13.52 ahead of its earnings report due later in the day.
H-share companies due to report earnings on Monday were also under pressure. China Life Insurance, the country's top life insurer, dropped 1.2 percent to HK $13.7. Oil refiner Sinopec Corp sagged 1.1 percent to HK $4.49 and Bank of China fell 0.6 percent to HK $3.38.
"People look at today as a technical rebound, but there could be more downside," said Andrew To, sales director at Tai Fook Securities. "People are still worried about China's austerity measures, and the renminbi revaluation may not materialise. Only HSBC and China Mobile are holding up the index. The other components are sluggish."
Global lender HSBC ended up 0.65 percent at HK $138.80, and cellular carrier China Mobile rose 1.2 percent to HK $49.75. Ports-to-telecoms conglomerate Hutchison Whampoa Ltd resumed Thursday's downturn after its earnings report held no surprise in the improvement of its 3G operation. Its shares shed 1 percent to HK $71.55.
Wharf Holdings Ltd also extended Thursday's slide after posting on Wednesday a slight fall in underlying profits for the first half as growth in rental incomes was offset by lower returns from its logistics and media investments. The ports-to-property conglomerate ended at HK $26.40, down 2 percent in heavy trade.
Two days after Aluminium Corp of China Ltd (Chalco) reported its first-half earnings nearly doubled, the world's second-largest alumina producer added to Thursday's sharp gains. Some analysts said Chalco's proposal of an interim dividend of HK $0.188 per share after paying no interim dividend last year furthered the gains. Chalco rose 1.3 percent to HK $5.31.
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