Hong Kong stocks advance 1.76%, boosted by mainland strength

19:39, November 04, 2009      

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Hong Kong stocks opened 0.74 percent higher and widened their gains before closing at 21,614.77 on Wednesday, up 374.71 points, or 1.76 percent, from the previous close.

Analysts attributed the rise largely to the strength of the Chinese mainland economy. The World Bank earlier upgraded its growth forecast for the mainland economy in 2009 from 7.2 percent to 8.4 percent, reflecting the stimulus measures.

Most analysts were cautious on the outlook for the stock markets, saying that the stock rally may have been too much ahead of the economic recovery. Some, however, said the stock markets were likely to hold at the current level given the liquidity.

Turnover on Wednesday totaled 60.06 billion HK dollars (7.7 billion U.S. dollars), compared with Tuesday's 61.01 billion HK dollars (7.82 billion U.S. dollars).

Forty-one of the 42 blue chips advanced, with the commerce and industry sub-index leading the gains with a rise of 1.95 percent. The finance sub-index, one of the four major stock categories, trailed with a rise of 1.76 percent.

The properties sub-index gained 1.39 percent and the utilities category gained 1.2 percent.

Banking giant and market heavyweight HSBC gained 0.23 percent to close at 85.9 HK dollars, reflecting the relative weakness of the U.S. and European markets.

Hang Seng Bank, the local unit of HSBC, advanced 1.17 percent.

China Mobile, the leading mobile carrier on the Chinese mainland and one of the market heavyweights, advanced 1.86 percent. Smaller rival China Unicom gained 2.55 percent.

The mainland banking shares were among the leading gainers, with ICBC, the leading commercial lender, up 2.58 percent. Bank of China surged 2.73 percent to close at 4.52 HK dollars and China Construction Bank was up 2.42 percent at 6.77 HK dollars.

China Life and Ping An were up 3.05 percent and 2.7 percent, respectively.

The oil shares surged on rising oil prices, with PetroChina up 3.55 percent, Sinopec 1.06 percent and offshore oil producer CNOOCup 2.95 percent.

Cheung Kong, the flagship of Hong Kong's richest man Li Ka-shing, edged up 0.21 percent at 97.25 HK dollars. Sun Hung Kai Properties, the leading residential housing developer in Hong Kong, closed up 1.67 percent at 115.5 HK dollars. (7.8 HK dollars = 1 U.S. dollar)

Source: Xinhua
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