Benchmark climbs to new 11-month high
Updated: 2009-08-11 07:11
(HK Edition)
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A couple walk past a large display showing the Hang Seng Index yesterday in the window of a bank in Hong Kong. The benchmark reached another 11-month high yesterday, following the one achieved on August 3, to close at 20,929 points. AFP |
HONG KONG: Pushed by local stocks, the Hang Seng Index (HSI) climbed to a new 11-month high, surpassing - by 22 points - its first 11-month high of August 3. The benchmark climbed up 2.72 percent to close at 20,929.52, its highest close since September 2.
Reports that Beijing will maintain policies aimed at boosting growth fueled the gains. Leading the day's gains was Aluminum Corp of China Ltd.
Aluminum Corp, the largest maker of the light metal on the mainland, advanced 5.6 percent. Hong Kong-based New World Development Co, which earned 26 percent of its 2008 revenue on the mainland, climbed 5 percent. China Shenhua Energy Co, the nation's biggest coal producer, rose 2.8 percent after reporting higher first-half profit. China Unicom Hong Kong Ltd, a unit of the nation's No 2 mobile phone-service provider, added 1.9 percent after the Commercial Times said the company plans to build an undersea cable across the Taiwan Strait.
The Hang Seng China Enterprises Index, which tracks so-called H shares of mainland companies, advanced 2.5 percent to 11,901.65.
"I don't think China will tighten lending in the next six months," said Khiem Do, head of multi-asset strategy at Baring Asset Management (Asia) Ltd in Hong Kong, which oversees $7 billion. "That helps the market. In the long term, we are bullish on the market in the next six to 12 months because of global recovery, strong balance sheets in Asia and because there will be more money coming in."
The HSI has soared 84 percent from a four-month low on March 9, amid speculation stimulus efforts worldwide, including 4 trillion yuan ($585 billion) of spending on the mainland, will revive global growth. The measure registered its first weekly loss in a month, shedding 1 percent, last week.
Beijing will maintain its current macroeconomic policy stance aimed at bolstering domestic spending as the nation continues to experience fallout from the global recession, Premier Wen Jiabao said yesterday.
Cathay Pacific Airways Ltd, Hong Kong's biggest carrier, advanced 2.5 percent to HK$11.40. Goldman Sachs Group Inc lifted its share-price forecast for the stock by 8 percent to HK$13.50, saying "the recovery of premium traffic and pricing could be a key catalyst for the stock," according to a research note yesterday.
Not all shares shared the gains: Esprit Holdings Ltd, which fell 0.7 percent to HK$54.30, was the only stock that dropped among the 42 members of the HSI. August futures added 2.5 percent to 20,817.
Bloomberg News
(HK Edition 08/11/2009 page4)