Hong Kong blue chips paused on Friday after gaining for four straight days, but China plays marked their seventh straight gaining session as investors bid up Sinopec Corp amid expectations of improving margins.
The benchmark Hang Seng Index finished at 19,692.64, a fresh three-week closing high, ending a week that saw heavyweights rally before their earnings reports. For the week, the index rose 3.9 percent, its best weekly gain in nearly a year.
But expectations were low for a similar performance any time soon in the absence of stock-specific catalysts now that key blue chips have reported their results.
"The big move is probably over," said Tat Auyeung, fund manager at Apex Capital Management. "People will become more selective." For now, blue chips look to be range-bound with key breakthroughs unlikely, analysts say.
"The Hang Seng Index will still have a big resistance at 20,000, and we're not likely to break it in the near-term," said Andy Lam, associate director at Harris Fraser (International).
The China Enterprises index of H shares, or Hong Kong-listed shares in mainland companies, advanced 0.8 percent to 9,487.51 to post a 4.1 percent gain for the week. Turnover was HK$43.0 billion (US $5.5 billion) compared to Thursday's HK$57.7 billion.
China Mobile, the day's most active stock, slid nearly 2 percent to HK$70.95 after its run-up earlier in the week. Sinopec, the biggest boost to the H shares, rose for a fourth-straight day, surging 3.2 percent to HK$6.48, as investors bid up the stock ahead of its earnings report due in early April, when Asia's top refiner is expected to show improving margins.
PetroChina Co Ltd advanced 1.4 percent to HK$8.78, helped by an overnight surge in oil prices. Fund managers said that the worst looked to be over for China's largest oil producer after it posted disappointing earnings, its stock having been oversold.
Jiangxi Copper raced up 1.4 percent to HK$9.43 in active trade after copper prices jumped overnight to a three-month high on news of strong consumption in China. Follow-through buying drove China Overseas Land up a further 4 percent to HK$9.72. The country's top real estate developer posted a forecast beating 55 percent rise in 2006 net profit on Wednesday.
Its peer Guangzhou R&F Properties Ltd shot up 2.5 percent to HK$16.56 after saying on Friday it would enter the Shanghai market with an aim to buy 10 billion yuan (US $1.29 billion) worth of land in the Chinese financial centre in two years.