Hong Kong stocks closed up
0.2 percent on Wednesday as Jiangxi Copper Co. Ltd. and other resource shares
chased sharp gains in commodity prices.
Investors also bid up China Mobile Ltd. in a last-minute buying spurt.
Earlier, Goldman Sachs raised its rating on China's top mobile carrier to "buy"
from "neutral".
China Mobile, the largest contributor to the blue chips' gains, rose 0.7
percent to HK$45.70.
Another bright spot was Shanghai-based Shimao Property Holdings Ltd., which
jumped 3.8 percent to HK$6.85 ahead of the trading debut on Thursday of
Greentown China Holdings Ltd. The Hangzhou-based developer has attracted orders
10 times greater than the number of shares earmarked for retail investors.
"Greentown's IPO is giving a boost to Shimao," said Steven Leung, sales
director at UOB Kay Hian Holdings.
"The long-term investors are still going for these IPOs; they'll hold it for
the medium-term. If you can hold it for a while, you'll make big profits."
The benchmark Hang Seng index rose 32.08 points to end at 16,522.21, while
the resource-heavy China Enterprises index of mainland H shares gained 0.38
percent to 6,826.65.
Turnover was low at HK$20.4 billion (US$2.6 billion), compared to Tuesday's
HK$24.2 billion.
"Asian stock markets won't show clear trends because there is uncertainty in
the monetary policy of the U.S.," Yuihama Hirokazu, regional strategist at Daiwa
Institute of Research, said, referring to coming weeks.
"As the interest rate worries hang over Hong Kong, stocks will trade in a
range", possibly reaching a high of 17,000 in the current quarter, or a 2.9
percent gain from the day's close, Hirokazu said.
Among resource issues, gold miner Lingbao Gold Co. Ltd. raced up 3.2 percent
to HK$8.10 and Jiangxi Copper gained 3.1 percent to HK$8.30.
China's top zinc producer, Hunan Nonferrous Metals Corp. Ltd., climbed nearly
4 percent to HK$3.325.
Top mainland oil producer PetroChina Co. Ltd., the biggest boost to H shares,
rose 1.2 percent to HK$8.55.
On the downside, PCCW Ltd. extended its loss following chairman Richard Li's
agreement to sell 23 percent of the telecoms company to Hong Kong financier
Francis Leung.
Li has confirmed he is providing Leung with about 70 percent of the (HK$9.2
billion) US$1.17 billion to buy a stake in PCCW, The South China Post reported
on Wednesday.
PCCW shares sank 2 percent to HK$5.0.
(US$1=HK$7.8)
