HK Index Up on Earnings; Your-Mart IPO Surges

123jump.com Staff
17 Jul, 2009
New York City

Investors in Hong Kong and Shanghai took optimistic views on the earnings after China estimated second quarter economic expansion at 7.9%. Your-Mart initial public offering in Shenzhen Stock Exchange surged 94% following in the footsteps of two other IPOs last week.

[R]7:00 PM Hong Kong, 7:00 AM New York – Investors in Hong Kong and Shanghai took optimistic views on the earnings after China estimated second quarter economic expansion at 7.9%. Your-Mart initial public offering in Shenzhen Stock Exchange surged 94% following in the footsteps of two other IPOs last week.[/R]

In the absence of any news on the economy and ahead of earnings next week, trading recommendations from brokers lifted select stocks. The general optimistic views on the economy lifted benchmark indexes higher.

The Hang Seng index in Hong Kong increased 443.79 or 2.42% to 18,805.66 and CSI 300 index in China higher 18.57 or 0.53% to 3,519.81.

After China estimated economy expanded in the second quarter at a faster pace of 7.9%, investors are now revising their estimates of the earnings higher.

Your-Mart Surges on First Trading Day

Your-Mart Company, the largest retailer in the central province Hunan, surged sharply on it s first day of trading. The company priced 50 million shares at 19.58 yuan each and raised 980 million yuan or $143 million.

The stock opened at 40 yuan and closed down 5% to 37.90 yuan but surged 94% from its initial offering price.

Your-Mart is the third IPO approved by the Chinese authorities after the listing and public offering prices were tightened by the regulators since the market turmoil in September 2008.

The traditional Chinese medicine developer Guilin Sanjin Pharmaceutical Company raised 910 million yuan and soared 85% and Zhejiang Wanma Cable Company surged 121% on its first day of trading on July 10.

Gainers & Losers

Orient Overseas soared 50% to HK$34.40 after losing 32% in the last one minute of trading yesterday.

China Overseas Land increased 2.9% to HK$17.26, Guangzhou R&F Properties surged 5.8% to HK$16.90 after properties remained focus of retail investors.

Tencent Holdings Ltd surged 7.1% to HK$98.50 as investors raced to add momentum driven stocks.

China Unicom (Hong Kong) Ltd surged 6.8% to HK$11.26 and China Mobile added 1.7% to HK$76.50.

China Construction Bank declined 1.9% to 6.10 yuan and in Hong Kong closed up 2.2% to HK$5.85.

China Petroleum & Chemical Corporation increased 1.9% to HK$6.38 and in Shanghai closed down 1.8% to HK$11.59.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 51.16 or 0.55% to 9,395.32, Hang Seng index in Hong Kong increased 443.79 or 2.42% to 18,805.66 and CSI 300 index in China higher 18.57 or 0.53% to 3,519.81. ASX 200 index in Australia increased 5.20 or 0.13% to 4,000.80. The FTSE Bursa KL Composite index in Malaysia closed higher 12.02 or 1.08% to 1,120.90.

The Kospi Index in South Korea increased 7.88 or 0.55% to close at 1,440.10. SET index in Thailand closed higher 13.37 or 2.29% to 596.11 and JSE Index in Indonesia decreased 11.60 or 0.55% to 2,106.35. The Sensex index in India increased 494.67 or 3.47% to 14,744.92.