Stocks rise as mainland developers advance
Updated: 2010-12-02 07:46
(HK Edition)
|
|||||||
Hong Kong's Hang Seng Index (HSI) rose to the highest level in more than a week, as Wharf Holdings Ltd gained after it bought land, and mainland-based developers climbed after Guangzhou R&F Properties Co said sales more than doubled.
The HSI rose 1.1 percent to 23,249.80. The gauge earlier fell as much as 0.7 percent. The Hang Seng China Enterprises Index gained 1 percent to 12,949.85.
Wharf Holdings soared 7.1 percent to HK$55.90 after saying it bought two plots of land in Jiangsu. The 1.12 billion yuan ($168 million) purchase will bring Wharf's land reserve on the mainland to more than 110 million square feet, it said.
Mainland-based developers rose, even amid monetary policy tightening concerns, as Guangzhou R&F Properties said contracted sales in November jumped 103 percent to 4.4 billion yuan from a year earlier boosting optimism that other developers will also report higher sales. Guangzhou R&F Properties gained 5.4 percent to HK$10.88.
Erwin Sanft, head of China and Hong Kong research at BNP Paribas, recommended property developers, saying large companies may benefit from further fund inflows.
China Overseas Land & Investment Ltd rose 3 percent to HK$15.36, and China Resources Land Ltd advanced 1.9 percent to HK$14.18. Bank of China Ltd rose 1.4 percent to HK$4.22.
China Shenhua Energy Co advanced 2 percent to HK$33.30 after the parent company's technology development department said Shenhua Group Corp's coal liquefaction production may reach 3 million metric tons a year by 2015.
"The manufacturing number shows the economy is still healthy and that will give the government some confidence to push out more cooling measures," said Deng Changrong, a strategist at Huaxi Securities Co in Shenzhen. "The market will face downward pressure in the coming few months."
More than four stocks rose for every one that fell on the 45-member HSI. Futures on the gauge gained 1 percent to 23,265.
Bloomberg
(HK Edition 12/02/2010 page3)