Hong Kong blue chips fell 0.3 percent on Friday as investors cashed in star performer China Mobile while H-shares closed at a record for a second straight day as investors bid up resource and financial stocks.
The benchmark Hang Seng index fell 61.72 points to 18,891.14, a 0.8 percent gain for the week. The China Enterprises index of H-shares, or Hong Kong-listed shares in mainland companies, hit a fresh peak at 7,974.40 before easing to a flat close. Still, it rose 3.22 points to a record close of 7,914.50.
The H-share index gained nearly 4 percent for the week as investors chased mainland financial and property stocks after the yuan hit its highest level since the July 2005 revaluation for three straight days. Turnover was a high HK$54.5 billion (US $7.0 billion) compared to Thursday's HK$47.1 billion.
"The heavyweight China Mobile is losing momentum; it has accumulated too many gains," said Kenny Tang, associate director at Tung Tai Securities. The Hang Seng should consolidate below 19,000 in the week ahead, though H-shares may reach new heights, with the next target seen at 9,000, Tang said. "Buying interest has been in Chinese financial stocks. Most institutional investors are buying off the renminbi (yuan)," he said.
Cellular operator China Mobile, which drove the market to fresh highs earlier in the week, shed 0.8 percent to HK$65.55. Its smaller rival, China Netcom, ended its four-day gaining streak, falling 4.1 percent to HK$15.34. Mainland lenders were in demand after the yuan struck its highest level since the July 2005 revaluation on Friday.
China Merchants Bank bolted 3.7 percent to HK$14.16. Bank of Communications raced up 4.2 percent to HK$6.77, earlier tapping a new high. Industrial & Commercial Bank of China gained 0.8 percent to HK$3.66 ahead of its addition to the MSCI index series on Monday. Resource stocks shot up with advancing crude prices. Offshore oil producer CNOOC Ltd jumped 3 percent to HK$6.85. Zinc producer Hunan Non-ferrous Metals Corp Ltd soared 11.9 percent to HK$4.32. earlier striking a new high.
Global retailer Esprit Holdings, which derives the bulk of its sales from Europe, gained 2.3 percent to HK$77.05 after the Euro hit a two-month high against the dollar. Lenovo plunged 11 percent to HK$3.08, a day after the world's third-largest PC maker posted a worse-than-expected 16 percent slide in fiscal second-quarter earnings.
Independent electricity generator China Power International Development Ltd saw heavy buying to surge 6.8 percent to HK$4.11 after raising US $223 million in a share sale that was expanded by 20 percent due to strong demand, a source familiar with the deal said on Thursday.
Hopson Development Holdings Ltd slid 2 percent to HK$17.32 after Temasek Holdings sold its 5.9 percent stake in the Chinese real estate firm. The Singapore state investment arm sold 75.3 million shares at HK$17.50 apiece-- the low end of a price range of HK$17.50 and HK$17.80 each.
Comments
Comments are closed.