Stocks advance as airlines, cement makers rebound
Updated: 2011-03-23 07:06
(HK Edition)
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Hong Kong stocks rose Tuesday, driving up the Hang Seng Index (HSI) for a third consecutive day, as airlines climbed after Japan made progress in stabilizing a nuclear plant and cement makers gained on the outlook.
Air China Ltd and Cathay Pacific Airways Ltd increased more than 3 percent as speculation eased that radiation from the damaged nuclear plant will deter travel. Lenovo Group Ltd climbed 6.5 percent as its facilities in Japan sustained "minimal damage" following the March 11 earthquake. Anhui Conch Cement Co led the advance among cement makers.
The HSI rose 0.8 percent to 22857.90 at the close in Hong Kong, with more than twice as many stocks gaining as declining among the index's 45 companies. The gauge slumped 4.1 percent last week amid concern Japan's biggest earthquake and a damaged nuclear plant would cripple the world's third-biggest economy.
The Hang Seng China Enterprises Index climbed 1.1 percent to 12783.20.
Japanese Prime Minister Naoto Kan said Monday he can see "light at the end of the tunnel", even as smoke at two reactors hampered efforts to restore cooling systems at the damaged Fukushima Daiichi nuclear plant. Japan's economy will likely rebound in the second half as the nation recovers from a record earthquake and subsequent tsunami, analysts surveyed by Bloomberg News said.
Airlines rebounded as concern eased that radiation in Japan will reduce passenger demand. China Eastern Airlines Corp rose 4.1 percent to HK$3.07. China Southern Airlines Co added 3.1 percent to HK$3.29. Cement producers advanced after Citic Securities Co said strong demand will boost prices of the building material. China National Building Material Co climbed 5 percent to HK$25.15.
Futures on the HSI increased 0.9 percent. HSI Volatility Index declined 8.02 percent to 20.29.
Bloomberg
(HK Edition 03/23/2011 page3)