 |
|
  |
2007-11-30 10:39:00 a.m. HKT, XFNA
Hong Kong shares firmer as Wall Street sustains gains on rate cut hopes -
|
| |
UPDATE
(Updating index level, adds dealer comment, share prices) .
HONG KONG (Thomson Financial) - Hong Kong shares were firmer Friday
morning, buoyed by Wall Street's sustained gains on growing expectations that
the Federal Reserve will cut interest rates next month.
""The market will further rebound today because the US market is heading
higher. Sentiment is improving because of an expected further rate cut in the
US, which could be more than the 25 basis points everyone is hoping for,""
said Kenny Tang, associate director at Tung Tai Securities.
Federal Reserve Chairman Ben Bernanke hinted on Thursday that another
interest rate cut may be needed to bolster the world's biggest economy.
The worsening credit crunch, a deepening housing slump and rising energy
prices probably will create some ""headwinds for the consumer in the months
ahead,"" he said.
At 10: 15 am, the Hang Seng Index was up 259.61 points or 1 percent at 28,
734.26, extending a two-day gain. The index opened up 122.14 points or 0.4
percent at 28,604.68.
Some investors may lock in recent gains, as worries over slowing growth
in the US and its impact on Asian exports lingered.
The Federal Open Market Committee will decide on December 11 whether to
follow its 75 basis point rate reduction over the last two months with
another cut.
Hong Kong's de facto central bank followed the Fed's rate cuts in
September and October and is widely anticipated to do so again in December,
helping boost the local stock market and property stocks in particular.
Rising inflation and falling interest rates may encourage Hong Kong
citizens to withdraw their deposits and invest the funds in real estate and
other assets, said Alex Tam, research analyst at CSC Securities HK Ltd.
He recommended Sun Hung Kai Properties as a good pick in the property
sector.
""Sun Hung Kai is more focused on the cash-rich high-end market and is
aggressively entering the mainland market,"" Tam said.
In September, Sun Hung Kai said it will pour additional funds of 33
billion yuan into the mainland in the next three years, bringing its total
investments in China to 77 billion yuan.
Hong Kong's inflation rate is expected to rise to an average of 4 percent
in 2008, while the benchmark three-month interbank rate will likely fall from
about 3.9 percent at present, Tam said.
Consumer prices in the city rose 3.2 percent in October from a year
earlier, its fastest pace in more than nine years.
Sun Hung Kai rose 80 Hong Kong cents or 1.6 percent to 161.30 dollars.
Cheung Kong (Holdings) Ltd, billionaire Li Ka-shing's flagship property
company, advanced 90 cents or 0.5 percent to 144.50 dollars.
Sino Land was up 85 cents or 3.1 percent at 28.30 dollars. Hang Lung
Properties climbed 70 cents or 2 percent to 35.10 dollars.
Banks were also higher as lower borrowing costs are expected to boost
lending.
Bank of China, the second biggest lender on the mainland, rose 4 cents or
1 percent to 4.13 dollars. Its unit BOC Hong Kong gained 44 cents or 2.2
percent to 20.20 dollars.
Bank of Communications advanced 16 cents or 1.2 percent to 12.34 dollars.
HSBC Holdings fell 60 cents or 0.5 percent to 131.70 dollars. Lehman
Brothers International (Europe) has cut its stake in HSBC Holdings, Europe's
biggest bank, to 3.48 percent in five days after raising it to 4.09 percent
last week, the South China Morning Post reported Friday.
HSBC is one of the top global banks that have posted losses from their
investments in subprime mortgage assets. The bank recently announced plans to
bail out two of its restructured investment vehicles with a 35 billion US
dollar funding facility.
Moody's Investors Service on Thursday cut its rating outlook on HSBC and
related subsidiaries to ""stable"" from ""positive"".
China COSCO, operator of Asia's largest container shipping line, was down
90 cents or 3.2 percent at 27.50 dollars.
Temasek Holdings, the Singapore state-linked investment company, said it
has sold 80 million shares in container shipping company China COSCO. It did
not provide details of the deal.
IFR Asia, a unit of Thomson Financial, said Temasek priced the shares at
26.75 to 27.00 Hong Kong dollars each, raising as much as 2.2 billion dollars.
It was the third time this week that Temasek has unloaded shares in
Chinese companies after selling stakes in Bank of China and China
Construction Bank.
Separately, China COSCO said its planned sale of A shares has been
approved by Chinese regulators.
Wharf Holdings rallied 1.30 dollars or 3 percent to 44.10. Citigroup has
maintained its ""buy"" recommendation on Hong Kong's port-to-property
conglomerate Wharf, which is selling 9.1 billion dollars of rights shares to
fund its expansion in China.
Stock market operator Hong Kong Exchange and Clearing Ltd was up 4
dollars or 1.7 percent at 237.80.
(1 US dollar = 7.80 Hong Kong dollars, 7.40 yuan)
jun.ebias@thomson.com .
je/nt je/nt
MMMM
AFN |
| |
News Provided by XFNA |
| |
|
| Copyright(C) AASTOCKS.com Limited 2000. All rights reserved |
| |
|
|
|
