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Hong Kong index rises 1.6 percent in half-day session that ends year

Hong Kong index rises 1.6 percent in half-day session that ends year

Hong Kong shares rose Monday, led by property stocks on expectations of further interest rate cuts and with investors snapping up bargains on the last day of the trading year.
The benchmark Hang Seng Index rose 442.05 points, or 1.62 percent, to close the half-day session at 27,812.65. The index has gained 39.3 percent since the end of trading in 2006.
Analysts said trade in the first quarter of next year would be "choppy" due to the economic slowdown in the U.S., a major buyer of Hong Kong exports.
"Hong Kong remains an overweight market. We continue to prefer the Hong Kong property sector and Chinese-related stocks benefiting from China's growth and policy solutions and regulatory changes," Joanne Goh, an analyst at DBS Group Research, said.
Most blue chips were higher in Hong Kong, with property stocks leading the way on expectations the U.S. will continue to cut lending rates in 2008. Hong Kong banks usually match U.S. rate cuts because the local currency is pegged to the U.S. dollar.
"For the full year (of 2008), we expect the U.S. will cut interest rates by a full percentage point," which will underpin the strength of the city's property market next year, said Ernie Hon, an analyst at local brokerage ICEA Capital Ltd.
Sun Hun Kai Properties climbed 4.15 percent to HK$165.60, Hang Lung Properties jumped 5.7 percent to HK$35.30, and Sino Land advanced 3 percent to HK$27.70.
HSBC rose 0.5 percent to HK$131.70, but lost 8 percent on the year because of investor concerns about the impact of the subprime mortgage problem in the U.S.
PetroChina rose 1.9 percent to HK$13.90. The stock gained 26 percent in 2007 on China's strong demand for oil and gas and the company's aggressive expansion of upstream assets at home and abroad.


Updated : 2021-04-17 08:06 GMT+08:00