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  • Apr 23, 2014
  • Updated: 11:19pm
Stock Talk
PUBLISHED : Thursday, 01 November, 2012, 8:18am
UPDATED : Thursday, 01 November, 2012, 8:57am

Market Open: Hang Seng seen higher on fresh HKMA intervention

Hang Seng is seen to open higher on speculation that hot money will boost equity prices after the city's de facto central bank stepped into the market to weaken the local unit, selling HK$2.7 billion worth of Hong Kong dollars.

Hang Seng is seen to open higher on speculation that hot money will boost equity prices after the city's de facto central bank stepped into the market to weaken the local unit,  selling HK$2.7 billion worth of Hong Kong dollars.

This is the sixth time in the past two weeks that the HKMA has stepped in to try to curb the impact of US dollar inflows, according to Reuters. The Hong Kong dollar has been pegged to the US dollar since 1983, but is allowed to move within a narrow band, and the HKMA only intervenes to underpin or weaken the currency when it threatens to break free of the trading band.

Overnight, the Standard & Poor's 500-stock index closed up 0.22 points, or 0.02 per cent, to close at 1,412.16. The Nasdaq Composite added 10.72 points, or 0.36 per cent, to 2977.23. In London, the FTSE-100 Index lost 67.20 poins, or 1.15 per cent, to finish at 5782.7.

Hot Stocks of the Day:

MGM China (2282.HK)
The Macau casino operator said net revenue increased 6 per cent year-on-year to HK$51.54 billion in the third quarter.

Anhui Conch (0914.HK)
The cement maker said it has gained approval from the China Securities Regulatory Commission (CSRC) to issue no more than 6 billion yuan worth of renminbi bond.

Tong Ren Tang Technologies (1666.HK)
The company said it submitted a revised spin-off proposal to list its subsidiary, TRT Chinese Medicine, on the local GEM board. Currently, Tong Ren Tang Technologies and its parent hold 53 per cent and 46.9 per cent of TRT Chinese medicine respectively, it said.

Yunbo Digital Synergy Group (8050.HK)
The company plans to raise no more than HK$17.9 million through a right issue, which would offer one share for ever four existing shares at HK$0.1 apiece. That represent 44.44 per cent discount to the closing pricing on Wednesday. 

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