Hong Kong stocks end higher after late rally, closing the week with a 1.6pc advance
Banks, technology and energy companies led a broad-based advance amid speculation China may unveil fresh measures to bolster the economy
Hong Kong stocks ended higher Friday, powered by a late afternoon surge that helped carry the benchmark index to its strongest weekly performance in more than a month, as banks, technology and energy companies led a broad-based advance amid speculation China may unveil fresh measures to bolster the economy.
The Hang Seng Index jumped 250 points around half an hour before the final bell to close 1.1 per cent higher at 22,754.72.
Among index heavyweights in Hong Kong, Sino-British banking giant HSBC Holdings edged up 1.5 per cent to HK$62.95, and Chinese online major Tencent Holdings closed up 1.4 per cent at HK$155.20. Chinese telecoms giant China Mobile rose 0.9 per cent to HK$91.75, after the company reported its 4G subscribers increased by 1.07 million in October to approximately 20 million.
Among the energy sector, offshore oil producer CNOOC advanced 2.6 per cent and fellow oil major PetroChina tacked on 2.2 per cent.
It was the Hang Seng’s strongest weekly gain in five weeks with the blue-chip tracker up 1.6 per cent during the five trading sessions.
Speculation that the People’s Bank of China would cut either interest rates or bank reserve requirement ratios this weekend may have contributed to the abrupt late afternoon rise in Hong Kong, said Gerry Alfonso, director at Shenwan Hongyuan Securities.
Shanghai stocks traded a tight band throughout the day with the city’s main composite index eventually closing 0.4 per cent higher at 3,630.50, while the large cap tracking CSI300 index closed down 0.02 per cent at 3,774.38. In Shenzhen, the composite index extended recent gains, closing 1.3 per cent higher at 2,285.83.
The Shanghai and Shenzhen indices were up 1.4 per cent and 3.6 per cent respectively for the week.
Chinese material stocks were among the biggest gainers Friday, taking their cues from a rise in global commodity prices. Shares in mining and metals extractor China Molybdenum Luoyang rose by its 10 per cent daily limit to 5.14 yuan. Railway rolling stock maker CRRC Corp rose 1.1 per cent to 14.41 yuan. Financials fell with Bank of China easing 1 per cent at 4.04 yuan and Citic Securities off 2.5 per cent at 20.54 yuan.
The region wide MSCI Asia Pacific ex Japan Index ended 2.1 per cent higher for the five trading days, capping is biggest weekly gain in six weeks.
Shares in Wynn Macau fell 1.1 per cent to HK$10.50 after the company announced a three-month delay in the opening of its new US$4.1 billion Macau based Wynn Palace hotel and casino.