HK, China shares up, Geely at record high
Thursday, 3 December 2009
HONG KONG/SHANGHAI, Dec 2 (Reuters): Stocks in Hong Kong and China chalked up a third consecutive session of bargain-hunting gains Wednesday after positive US home sales data restored confidence in a global economic recovery and lifted stocks on Wall Street.
The Hang Seng Index rose 0.8 per cent, or 176.42 points to 22,289.57.
The China Enterprises Index of top locally listed mainland Chinese stocks gained 0.85 per cent to 13,341.17.
Sentiment in overseas stock markets also received a lift as concerns receded about the impact of Dubai's debt troubles following news that Dubai World planned to restructure about $26 billion in debt.
Hong Kong's benchmark index has now regained all losses from last Friday's steep sell-off amid concern over a possible debt default by Dubai World. But stocks erased some of their earlier gains in morning trade, as investors took profit, traders said.
"The market rebounded sharply in the past three sessions," said Conita Hung, head of research of Delta Asia Financial.
"There needs to be some consolidation, but I see support at 22,000 -- I don't expect there to be a sharp drop."
Other investors said the recovery could be short-lived. "What happened with Dubai World is not that simple," said Peter Lai, director at DBS Vickers. "We have to wait for more figures from Dubai before we can buy. The market will fluctuate wildly. For the present, short-term speculation is recommended."
Lai said the upside for Hong Kong's stock index would be limited to the 23,000 level for the next two to three weeks.
Turnover increased to HK$77.9 billion ($10.05 billion) from Tuesday's HK$74.9 billion.
Geely Auto rose 9.3 per cent during morning trading to an all-time high, boosted by a report that its parent was a step closer to completing its acquisition of Ford Motor's Volvo unit. Geely ended the day at HK$4.11, up 5.93 per cent.
Macau casino operators rose on reports gambling revenue had risen 59 per cent from a year earlier, signalling sustained growth in the world's largest gambling market.
Recent debutant Sands China, the Macau unit of Las Vegas Sands, was up 6.71 per cent at HK$10.18, while Wynn Macau, a unit of Wynn Resorts gained 6.23 per cent to HK$10.40.
Gold counters soared after gold futures GCG0 rose to a record high Wednesday as weakness in the US dollar spurred buying of the precious metal as a safehaven investment.
The Hang Seng Index rose 0.8 per cent, or 176.42 points to 22,289.57.
The China Enterprises Index of top locally listed mainland Chinese stocks gained 0.85 per cent to 13,341.17.
Sentiment in overseas stock markets also received a lift as concerns receded about the impact of Dubai's debt troubles following news that Dubai World planned to restructure about $26 billion in debt.
Hong Kong's benchmark index has now regained all losses from last Friday's steep sell-off amid concern over a possible debt default by Dubai World. But stocks erased some of their earlier gains in morning trade, as investors took profit, traders said.
"The market rebounded sharply in the past three sessions," said Conita Hung, head of research of Delta Asia Financial.
"There needs to be some consolidation, but I see support at 22,000 -- I don't expect there to be a sharp drop."
Other investors said the recovery could be short-lived. "What happened with Dubai World is not that simple," said Peter Lai, director at DBS Vickers. "We have to wait for more figures from Dubai before we can buy. The market will fluctuate wildly. For the present, short-term speculation is recommended."
Lai said the upside for Hong Kong's stock index would be limited to the 23,000 level for the next two to three weeks.
Turnover increased to HK$77.9 billion ($10.05 billion) from Tuesday's HK$74.9 billion.
Geely Auto rose 9.3 per cent during morning trading to an all-time high, boosted by a report that its parent was a step closer to completing its acquisition of Ford Motor's Volvo unit. Geely ended the day at HK$4.11, up 5.93 per cent.
Macau casino operators rose on reports gambling revenue had risen 59 per cent from a year earlier, signalling sustained growth in the world's largest gambling market.
Recent debutant Sands China, the Macau unit of Las Vegas Sands, was up 6.71 per cent at HK$10.18, while Wynn Macau, a unit of Wynn Resorts gained 6.23 per cent to HK$10.40.
Gold counters soared after gold futures GCG0 rose to a record high Wednesday as weakness in the US dollar spurred buying of the precious metal as a safehaven investment.