The benchmark Hang Seng Index yesterday reached an all-time high of 24,310 points, as property stocks gained on hopes that the US would cut interest rate soon.

The index soared 357 points or 1.49 percent on a daily turnover of HK$98.2 billion. China Enterprise Index, an indicator of the performance of mainland companies, advanced 116 points to 14,450.

Market watchers widely expected that the US Federal Reserve would cut interest rate by 25 basis points to prevent the economy from slowing down. Hong Kong typically tracks US rate move to maintain its currency peg to the greenback.

Spurred by the speculation, tycoon Li Ka-sing-controlled Cheung Kong Holdings rose HK$4.5 or 3.93 percent to HK$119. Sun Hung Kai Properties gained HK$7.7 or 7.06 percent to HK$116.7.

Other market movers also did well.

Major index mover China Mobile and HSBC respectively inched up HK$1.5 and HK$0.7, to HK$102.8 and HK$138.9.

The mainland's largest freight carrier Air China, announced the passenger and cargo throughput rate in August with 6.3 percent and 10.3 percent month-to-month increase respectively.

China Life, the mainland largest insurer, yesterday surged HK$0.25 or 0.679 percent to HK$37.05.

Enlighten Securities and Futures Executive and Vice-President Ricky Cheung said that the stock market's outlook would be pretty prospective. "We don't see any negative factors looming over the market days ahead, of which the HSI could touch the next technical barrier of 24,800."

"The property stocks would continue the rising streak in anticipation of the US rate cut," he said. "Even if Hong Kong lenders do not promptly follow the suit, the local rate has room to revise in the long term."

However, there is uncertainty ahead, said Kingston Lin, associated director of Prudential Brokerage.

"The trend will largely hinge on the US sub-prime market and the progress of 'direct train' scheme," said Lin.

He predicted the index would linger around 24,000 in the short run.

(HK Edition 09/13/2007 page6)