Stocks rise on raw materials demand
Updated: 2011-03-15 07:06
(HK Edition)
|
|||||||||
Hong Kong's Hang Seng Index rose, led by steel and coal producers, on speculation that Japan's strongest earthquake on record will boost demand for raw materials needed to rebuild after the devastation.
The HSI rose 0.4 percent to 23345.88 at the close in Hong Kong, erasing a loss of as much as 0.7 percent earlier. Japan's Topix index closed 7.5 percent lower, the most since October 2008, after police said the 8.9-magnitude temblor may have killed 10,000 people.
The Hang Seng China Enterprises Index gained 1 percent to 12882.75. The MSCI Asia Pacific Index tumbled 2.7 percent to 131.36 for the largest decline since June 7.
The Hang Seng trades at 12.6 times estimated profit according to data compiled by Bloomberg. Among companies in the index, 25 rose and 18 declined.
The HSI Volatility Index rose 1.5 percent to 20.73, indicating the Hang Seng may swing 6 percent in the next 30 days.
The Hang Seng Commerce & Industry Index rose for the first time in three days, climbing 0.7 percent. Citic Pacific rose 4.8 percent to HK$21.90. China Shenhua jumped 2.7 percent to HK$34.35. China Coal Energy gained 1.6 percent to HK$11.64.
"The rebuilding process will drive demand for cement, timber, steel, copper, aluminum, coking coal and telecom equipment," wrote analysts at UOB Kay Hian Holdings Ltd in a research report Monday.
Belle International retreated 2.4 percent to HK$13.70.
Orient Overseas (International) Ltd rallied 10 percent to HK$79.85, the biggest advance in the Hang Seng Composite Index. The operator of Hong Kong's biggest container line said it would pay a $2.09 special dividend.
BYD Co fell 1 percent to HK$34.60. The automaker reported a 94 percent decline in its fourth-quarter net profit after demand for its vehicles slumped.
Bloomberg
(HK Edition 03/15/2011 page2)