Commodities hurt HK shares, Bank of China soars
(Reuters)
Updated: 2006-06-01 18:44
Bank of China, which logged the second-highest turnover for a single stock in
the history of the Hong Kong stock exchange, ended the day at HK$3.40, or 15
percent above its IPO price of HK$2.95.
"It's a big surprise," said Peter Lai, director at DBS Vickers of Bank of
China's first-trading day performance. "There are overseas funds chasing the
counter .... in the short-term, it should trade around this price, but in the
long-term, it will outperform the market."
Gaming-related stocks jumped on news that Melco International Development
would use the net HK$1.18 billion it raised from a share sale to purchase a
property in Macau, to cut debt and for working capital.
Galaxy Entertainment Group Ltd. gained 1.84 percent to HK$8.30, earlier
tapping one-year highs. Melco, the day's third most actively-traded stock,
settled at HK$21, up 3.45 percent, having earlier set a new peak.
Champion REIT, which sunk to the lowest since listing last week, plummeted
8.6 percent to HK$4.00 as investors shunned the property trust for its low
yield, analysts said.
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