4t-yuan stimulus package boosts stocks; HSI up 3.52%
Updated: 2008-11-11 07:33
By Kwong Man-ki(HK Edition)
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Stock traders cheer on stock rally. Hong Kong shares ended 3.52 percent higher yesterday as central government's economic stimulus package and a pre-weekend rise on Wall Street pushed up markets across Asia. The benchmark Hang Seng Index closed up 501.2 points at 14,744.63. AFP |
Hong Kong stocks rose 3.52 percent and construction-related stocks rallied as sentiments turned bullish after the mainland pledged a 4-trillion-yuan stimulus plan to spur economic growth.
Cement maker China National Building Material surged 42.33 percent and steelmaker Maanshan Iron and Steel jumped 34.52 percent after the central government announced the economic stimulus package at the weekend.
"Mainland-related counters continue to enjoy buying interest because of the stimulus package and sentiment has improved dramatically," said Alex Tang, research head at Core-Pacific Yamaichi.
"In the short term, the market will stay relatively firm and we are not expecting any sharp reversal," he added.
The benchmark Hang Seng Index closed up 501.2 points at 14,744.63, led by a 5.43 percent jump in China Mobile. Another index heavyweight HSBC rose 0.33 percent to close at HK$92.30.
The index gained as much as 6.2 percent earlier, but investors locked the profits as they feared the stimulus package would not stave off a looming global recession.
Aluminum Corp of China surged 18.97 percent to close at HK$3.45, making it the biggest percentage gainer on the Hang Seng Index. The company said on Sunday its shareholders had granted the board of directors a "general mandate" to repurchase the company's H shares.
Offshore oil producer CNOOC rose 9.24 percent, while Asia's largest oil and gas producer, PetroChina, gained 8.22 percent. Sinopec Corp, Asia's biggest refiner, jumped 7.69 percent.
Mainboard turnover rose to HK$60.7 billion from HK$48.8 billion on Friday.
Construction-related stocks experienced sharp jump. China Railway Construction soared 20.22 percent to HK$10.7, Anhui Conch, China's largest cement maker, jumped 31.48 percent. Top integrated copper producer Jiangxi Copper surged 18.6 percent.
Mainland lenders and insurers also joined the rise. China Construction Bank climbed 7.69 percent and China Life Insurance rose 8.96 percent.
The China Enterprises Index of top locally listed mainland companies rose 9.1 percent to 7,412.85, its highest close since October 20.
Jing Ulrich, chairman of China equities at JPMorgan, said the stock market would start having the positive impact of government's fiscal stimulus program.
"Accelerated infrastructure expansion will benefit contractors and building materials suppliers. Higher social welfare spending and rural reforms will help boost consumption," she said.
(HK Edition 11/11/2008 page2)