Get 40% Off
🔥 This hedge fund gained 26.16% in the last month. Get their top stocks with our free stock ideas tool.See stock ideas

HK shares hit 9-mnth high; China stocks slip

Published 06/12/2009, 01:01 AM
Updated 06/12/2009, 01:08 AM
CSGN
-
TTEF
-
TGT
-
0688
-
0939
-
1398
-

(Updates to midday)

HONG KONG/SHANGHAI, June 12 (Reuters) - Hong Kong shares rose for a third straight day on Friday, with the main index breaching the 19,000-point level for the first time in nine months, as data from the U.S. and China strengthened the case for a turnaround in the global economy.

But China-listed shares slipped on worries the moratorium of new listings may be lifted imminently.

Here are the index moves and top stock moves by midday-

HONG KONG

* The benchmark Hang Seng Index was up 1.2 percent at 19,024.43 by midday after briefly touching 19,161.97, its highest level since September 25, 2008.

* "Pushing the index above 19,000 points was crucial to creating the impression that this is a bull market," said DBS Vickers director Peter Lai.

"But at this level selling pressure is very high. Funds that bought into the market at 12,000-13,000 points have already begun to take profit," he said.

* Turnover slipped to HK$45.4 billion ($5.8 billion), from HK$47.7 billion at midday Thursday.

* The China Enterprises Index of top mainland companies rose 1.2 percent to 11,208.98.

* Industrial stocks and metal counters were buoyed by data that showed China's May factory output rose more than forecast and retail sales growth accelerated.

* Chinese bank stocks jumped after data showed new yuan lending rose in May, in line with expectations, and on reports that the country's No.3 lender, CCB, was looking to buy stakes in a domestic insurer and China Cinda Asset Management.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

* Top lender ICBC was up 3.1 percent at HK$5.26, while China Construction Bank (CCB) had advanced 4.2 percent to HK$5.69. Both stocks moved in large volumes, making up 13 percent of total turnover on the exchange in the morning session.

* The loan data also supported strong gains in Chinese property counters with China Overseas Land climbing 5.3 percent and Guangzhou R&F Properties advancing 3.7 percent.

* Global lender HSBC climbed 3.2 percent to HK$69.65,lifted by encouraging retail sales and jobs data from the U.S. The stock has lagged behind its peers and the broader index as it went into a tailspin ahead of its cash call in March. HSBC has edged up 2 percent since the beginning of the year, compared with the 32 percent rally on the Hang Seng Index.

* HSBC shares were raised to an "outperform" rating from "neutral" by Credit Suisse on Thursday with a target price of HK$84, as it is seen to be less vulnerable to the margin pressure on European banks in the medium term.

SHANGHAI

* The Shanghai Composite Index ended the morning down 0.59 percent at 2,780.886 points, but was headed for a 1 percent gain for the week after climbing to a 10-month high mid-week.

* Losing Shanghai A shares outnumbered gainers by 711 to 200, while turnover in Shanghai A shares dropped to 57.2 billion yuan ($8.4 billion) from Thursday morning's 64.4 billion yuan.

* A senior securities regulator said China would resume initial public offerings on its stock exchanges before launching a new Nasdaq-style second board for start-up companies, which analysts said suggested a resumption of IPOs could be imminent, although it was unknown how big the first batch might be.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

* "Investors are wary in case negative (IPO) news comes out over the weekend and IPOs could weigh on the market in the short term, but they won't keep the index from setting a new high for the year," said CITIC-Kington Securities analyst Qian Xiangjing.

* Steel shares were weak for a second day, with Baosteel, China's top steelmaker, sinking 2.35 percent to 6.66 yuan on worries over possible output cuts and rising costs.

* Minmetals Development jumped 5.30 percent to 19.48 yuan after its parent company sealed a $1.4 billion deal for assets of Australian miner OZ Minerals Ltd.

* Several health product stocks gained after the World Health Organisation declared an influenza pandemic on Thursday. Guilin Layn Natural Ingredients, a health food products maker, and Da An Gene, a developer of gene diagnostic technologies and related products, both gained more than 7 percent.

* Beverage manufacturer Hainan Yedao sagged 5.75 percent to 11.14 yuan after estimating its losses in the first half of 2009 could hit 20 million yuan.

(Reporting by Parvathy Ullatil in HONG KONG & Claire Zhang in SHANGHAI; Editing by Edmund Klamann and Chris Lewis)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.