Investors Bid Up Stocks in Shanghai, HK

123jump.com Staff
17 Mar, 2010
New York City

Market indexes in Hong Kong rose more than 1.7% after the U.S. Fed left its lending rate unrevised. Shanghai indexes advanced tracking gains in commodities and resource stocks. Property developers gained for the third day in Hong Kong. Bank of China is to finalize its $7 billion stock sale.

[R]6:00 AM Hong Kong, China – Market indexes in Hong Kong rose more than 1.7% after the U.S. Fed left its lending rate unrevised. Shanghai indexes advanced tracking gains in commodities and resource stocks. Property developers gained for the third day in Hong Kong. Bank of China is expected to finalize its $7 billion stock sale in Hong Kong this week.[/R]

Stocks in Hong Kong gained after the U.S. Fed left its interest rate range unrevised and offered to keep rates low for an extended period of time and EU ministers and regulators worked to finalize the strategic framework to bailout Greece.

Hong Kong generally follows the interest rate decision and direction set by the U.S. central bank as the local dollar is linked to the U.S. dollar.

Hang Seng index in Hong Kong increased 361.56 or 1.72% to 21,384.49, and CSI 300 index in China closed higher 69.94 or 2.18% to 3,273.92.

Resource stocks advanced in Shanghai after metals and energy commodities gained on the expectations of low interest rate environment in the year.

Shanghai Movers

Bank of China Limited advanced 0.7% to 4.17 yuan after the bank is close to finalizing its $7 billion share offering in Hong Kong according to a report published in the Financial Times and did not cite any source.

Industrial and Commercial Bank of China Limited added 1.2% to 4.88 yuan.

China Coal Energy Co. increasd 2% to 11.50 yuan and February coal production increased 34.7% to 9.94 million tons and coke mining surged 62.5% to 260,000 tons. Coal sales in the month increased 36.3% to 8.75 million tons.

Jiangxi Copper increased 2.7% to 34.96 yuan and Zhongjin Gold Corp increased 1.7% to 49.54 yuan.

Insurance companies closed sharply higher on the low interest rate expectations in the U.S. Ping An surged 5.8% to 48.32 yuan and China Life Insurance Co added 2.8% to 28.41 yuan.

HK Movers

Denway Motors Limited declined 5.3% to HK$4.10 after the company proposed a final dividend.

Fubon Bank (Hong Kong) Limited increased 8.3% to HK$3.52.

Hang Lung Properties Limited gained 4.1% to HK$32.35.

The Hong Kong and China Gas Company Limited climbed 3.2% to HK$19.36 after the piped-gas supplier plans to sell six piped-gas distribution projects in China to 43.41%-owned unit Towngas China Co for HK$1.72 billion, the companies said in a joint statement Wednesday.

Kerry Properties Limited decreased 2.8% to HK$38.85 after the real estate developer reported 2009 sales fell 1.5% to HK$12.9 billion from HK$13.1 billion a year ago. Net profit in the year rose 44% to HK$4.39 billion or HK$3.04 per diluted share compared to net profit of HK$3.05 billion or HK$2.13 per share a year ago.

Poly (Hong Kong) Investments Limited rose 2.1% to HK$9.69 after the developer acquired total control of four property projects in mainland China through the acquisition of a subsidiary controlled by the parent China Poly Group Corp.

Property developers in Hong Kong trading gained for the second day this week on the low interest rate expectations. Hang Lung Properties increased 3.2% and Sun Hung Kai Properties Ltd gained 4%.

SJM Holdings Limited increased 6.9% to HK$4.44 after the Macau based company is likely to benefit from a plan to limit industry expansion.

Towngas China Company Limited rose 1.4% to HK$3.62.