Hong Kong stocks ended 0.59 percent higher on Wednesday, in line with a regional rally after another record-breaking performance on Wall Street. The benchmark Hang Seng Index climbed 135.73 points to 23,080.03 on turnover of HK$71.86 billion (US $9.27 billion). Attention will now turn to the release on Friday of revised US economic growth data for the first three months of the year.
In Hong Kong, gains could prove fleeting as traders attributed the burst of activity Wednesday to jostling ahead of the expiry of derivatives contracts, a report by Dow Jones Newswires said. Financial stocks led the gains - China Construction Bank was up 1.4 percent at HK$5.68, HSBC rose 0.18 percent to HK$81.45 and ICBC bank was up 1.41 percent to HK$5.04.
Internet giant Tencent added 1.71 percent to HK $113.3, Ping An Insurance of China was up 0.86 percent at HK$58.75 and Henderson Land Development gained 0.10 percent to HK$49.90 but Cathay Pacific Airways dipped 0.27 percent to HK$14.72. In China the benchmark Shanghai Composite Index rose 0.77 percent, or 15.66 points, to 2,050.23 on turnover of 68.6 billion yuan ($11.0 billion).
The Shenzhen Composite Index, which tracks stocks on China's second exchange, jumped 1.37 percent, or 14.41 points, to 1,063.22 on turnover of 100.7 billion yuan. Computer stocks rose on expectations the government will support domestic products after a US grand jury indicted five Chinese military officers on charges they hacked American computers to benefit Chinese state firms. "The market is generally stable. Trading volume is thin. Investors are not very active," Haitong Securities analyst Zhang Qi told AFP.
"The valuation of computer stocks now seems on the high side, but it delivers a message that the market is enthusiastic about this sector," he added. On the technology-heavy Shenzhen market, Inspur Electronic Information Industry surged its 10 percent daily limit to 33.99 yuan, while in Shanghai Neusoft Corp rose 6.85 percent to 13.25 yuan.
Investors are now looking ahead to the release at the weekend of China's official purchasing managers index (PMI) of manufacturing activity. Analysts also said market players are waiting to see if the government eases monetary and fiscal policy further to give the economy a shot in the arm. Also in Shanghai Wuhan Iron & Steel was up 0.49 percent at HK$2.05, China Southern Airlines put on 0.43 percent to HK$2.35 and SAIC Motor edged 0.48 percent higher to HK$14.74.
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