Hong Kong blue chips were mostly higher across the board on Thursday, bolstered by a record close on Wall Street, with Industrial & Commercial Bank of China gaining as investors cheered its latest quarterly results.
China Molybdenum Co, the day's most active issue, shot up in its listing debut after raising US $944 million in a Hong Kong IPO. "Looking at this stock, you see that the IPO frenzy isn't finished," said Steve Cheng, associate director at Shenyin Wanguo.
All but three of the 38 blue chips advanced. The benchmark Hang Seng Index closed up 130.51 points to end at 20,667.29 on turnover of HK$51.80 billion (US $6.64 billion) compared with Wednesday's HK$44.4 billion. "Everyone is waiting for the market to hit a new high," Cheng said. "If there isn't a new high by next week, we should be getting cautious."
Hong Kong has failed to hit a record in the wake of new consecutive highs posted by US blue chips and mainland stocks. "The market doesn't seem to be rushing to break 20,800 - we're still in a holding period, trading a bit sideways," said Matt McKeith, head of equity dealing at First State Investments.
"The market wants to see more data ... and more certainty out of China," McKeith said, noting a prevailing caution about the prospect of further tightening measures by mainland authorities. China Molybdenum shares traded between HK$10.6 and HK$11.28, or 56 and 66 percent higher than their IPO price of HK$6.80. Shares in the company, China's biggest producer of the minor metal used in steel production, ended at HK$10.82.
Another big mover was Sinopec Yizheng Chemical Fibre Co Ltd, a unit of oil refiner Sinopec Corp. The stock vaulted 15.4 percent to HK$2.77 amid speculation of a possible restructuring, and ahead of next week's quarterly results. Sinopec Yizheng shares traded in Hong Kong were tracking their Shanghai-listed shares, which had reached their daily limit of a 5 percent rise. Sinopec settled up 1.7 percent at HK$7.03.
Top Chinese lender ICBC leapt 1.2 percent to HK$4.36 after saying on Wednesday its first-quarter after-tax profit rose 51.6 percent on higher interest margins and fee income. China Agri-Industries Holdings Ltd was also active, falling 4.9 percent to HK$6.25, in another day of sharp decline. Goldman Sachs earlier in the week initiated coverage of the stock with a sell rating, saying shares in the biofuel play had priced in the upside.