Hong Kong's stock index doubles from March low
Tuesday, 17 November 2009
HONG KONG, Nov 16 (Bloomberg): Hong Kong stocks rose for a second day, lifting the benchmark index 100 per cent higher than its March low. Banks led gains after Goldman Sachs Group Inc. recommended investors buy China Citic Bank Corp.
China Citic Bank, the banking unit of the nation's largest investment firm, advanced 3.7 per cent. Goldman Sachs lifted its price targets for Chinese banks on expectations for rapid economic growth over the next three or more quarters. Li Ning Co., a Chinese sportswear maker founded by a former Olympic gymnast, surged 8.1 per cent after China said retail sales will accelerate. CPMC Holdings Ltd., a manufacturer of food packaging products, soared 13 per cent on its debut.
"Our view has turned from previously cautious to a more neutral position since economic data is better than expected and investors' appetite for risky assets has improved," said John Koh, regional investment director at MEAG Hong Kong Ltd, which manages $1.1 billion.
The Hang Seng Index added 1.7 per cent to close at 22,943.98, bringing its gains to 102 per cent from this year's low on March 9 as stimulus measures revived economies around the world. It was gauge's highest close since July 24, 2008. Shares on the index are priced at an average 18.2 times estimated profit, up from 10.6 times at the start of 2009, according to data compiled by Bloomberg.
China Citic Bank, the banking unit of the nation's largest investment firm, advanced 3.7 per cent. Goldman Sachs lifted its price targets for Chinese banks on expectations for rapid economic growth over the next three or more quarters. Li Ning Co., a Chinese sportswear maker founded by a former Olympic gymnast, surged 8.1 per cent after China said retail sales will accelerate. CPMC Holdings Ltd., a manufacturer of food packaging products, soared 13 per cent on its debut.
"Our view has turned from previously cautious to a more neutral position since economic data is better than expected and investors' appetite for risky assets has improved," said John Koh, regional investment director at MEAG Hong Kong Ltd, which manages $1.1 billion.
The Hang Seng Index added 1.7 per cent to close at 22,943.98, bringing its gains to 102 per cent from this year's low on March 9 as stimulus measures revived economies around the world. It was gauge's highest close since July 24, 2008. Shares on the index are priced at an average 18.2 times estimated profit, up from 10.6 times at the start of 2009, according to data compiled by Bloomberg.